Kampala — The new electronic system launched by the Uganda Securities Exchange that started with the opening of accounts is gathering pace.

The account opening that takes place at the various brokerage firms' premises has seen a significant number of people opening accounts.

Activity picked up at the firms especially in the afternoons, according to the brokers at USE.

The exact number of accounts opened could not be established at all the brokerage firms although at one atleast over 20 people had opened within two weeks. African Alliance, MBEA, Baroda Capital Markets and Renaissance brokerage firms did not disclose the number of clients who have opened accounts. Uganda has atleast 10 brokerage firms that are currently the Securities Central Depository agents where accounts are being opened.

"An account creates a profile for the investor," a broker told East African Business Week.

"Once the account is fully open then an investor will pay any amount of money to the brokerage firms' account and then give the firm a go ahead to purchase shares," he said.

At the launch of the new system Mr. Joel Lutamaguzi, the manager of the Securities Central Depository (SCD) system at USE, said they expect investor numbers to grow because account opening remains for those who wish to hold securities.

"One doesn't necessarily need to purchase shares in order to have an account. Holding an account means in case of an IPO, purchasing and transacting of securities will be made easy," Mr Luttamaguzi added.

According to the SDA's Most of the people opening accounts are mainly ones who already own shares in various companies.

The first phase of implementing the SCD system involves the investors opening accounts with the Securities Depository Agents (SDAs) will give way to automated trading of stocks on the USE, which will be the second phase to be completed by the end of the year.

The SDAs include all the brokerage firms licensed by the Capital Markets.