The planned switch to same-day share transactions at the Nairobi bourse, on the cards since late 2015, has been pushed back again to sometime next year due to delayed system upgrades and linkages.
The Central Depository and Settlement Corporation (CDSC), the Nairobi Security Exchange’s (NSE) clearing house, said its upgraded system was still being interfaced with that of the self-listed bourse.
The intra-day trade was to start in September 2015 but was delayed to make the system compatible with NSE. This required installation of a new $120,000 (Sh12.44 million) depository software, which was to be done by April this year but postponed to between August and September to allow for modifications to accommodate new products like securities lending and borrowing.
“Once that (interface with NSE) is done, then we can give a go-live date. I don’t want to give any date because I end up being quoted and then I start getting calls when the date comes,” Ms Rose Mambo, CDSC chief executive said in an interview.
“So when we are ready, we will announce the go-live date we project. This will be next year because you don’t want to go live in December when people are on holiday.”
The NSE switched to present T+3 settlement cycle in July 2011, beating giants on the continent including Johannesburg Stock Exchange, which only moved to the three-day trade cycle in July last year.
Planned day trade for equities, following that for T- bonds and bills in August 2014, is aimed at multiplying transaction volumes and attracting more investors to the bourse. This is part of the government’s ambitious plan to make Nairobi a regional financial services hub.