Tanzania: Dar es Salaam Stock Exchange Now Part of Global Exchanges Body

Dar es Salaam — The precision of trading processes and standards at the Dar es Salaam Stock Exchange (DSE) Plc has attracted the attention of international observers, granting the 23-year-old bourse a full membership of the World Federation of Exchanges (WFE).

Established 58 years ago, the London-headquartered WFE is the global industry association for exchanges and clearing houses, representing over 200 market infrastructure providers, including stand alone counterparty clearing houses (CCPs) that are not part of exchange groups.

A statement availed to The Citizen yesterday by the DSE chief executive officer, Mr Moremi Marwa, showed that the WFE board approved the DSE Plc's full membership during its meeting that was held in London, on January 21, 2019.

"This evaluation confirmed that the Stock Exchange, the Regulators, the Central Depository and other stakeholders (including listed companies, stockbrokers, custodian and settlement banks, etc) of the Tanzanian capital market meet the main WFE standards and requirements in terms of compliance with market principles, efficiency and governance issues," the statement reads.

The standards in question cover topics as diverse as market organisation; equal market access; legal and regulatory environment for listing and trading; clearing, settlement and custody; conflict resolution and complaint handling; risk management as well as market technical infrastructure. The DSE Plc achieved an Affiliate member status in 2016.

Since then, there have been process and onsite peer review and inspection exercises that were carried out by a team comprised of Jo-hannesburg Stock Exchange, Egypt Stock Exchange and Bermuda Stock Exchange representatives in December 2018, culminating into the board's decision to grant the DSE a full membership status.

According to WFE, for the exchange industry to perform its macroeconomic role, it must meet the high standards set by the market's commercial needs and adhere to the best practices and standards set by local and global authorities competent in the financial services industry.

WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk.

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