Southern Africa: Committee of SADC Stock Exchanges (Cosse) - Validates Interconnectivity Hub Project Specifications for the Smart Order Router

2 October 2024
Southern African Development Community (Gaborone)
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In an ongoing effort to fulfil the objective of developing a harmonized securities market environment within the Southern African Development Community (SADC), the Committee of SADC Stock Exchanges (CoSSE) has taken a significant step by validating the principles and operational model of the Interconnectivity Hub Project at a meeting held by members on 11 September 2024.

This milestone represents significant progress towards seamless cross-border investments, trading and regional economic integration. This validation is in pursuit of a single Market and Production Base through Transforming SADC into an economic competitive region with equitable economic development while integrating into the Global market.

The validation paves way for the procurement, hosting and implementation of the Smart Order Router platform that will facilitate the SADC stock exchanges interconnectivity. Launched in 2014, the Interconnectivity Hub Project aims to create a multi-directional trading link among SADC stock exchanges.

This platform will enable regional and international investors to access and trade securities across SADC countries, subject to applicable laws and regulations. CoSSE Chairperson Mr Collen Tapfumaneyi said the initiative also seeks to harmonise listing and trading rules as well as enhance block trading in corporate bonds and various currencies, alongside the Government Bond Markets.

Dr. Lufeyo Banda, representing the African Development Bank (AfDB), highlighted the critical role of harmonizing regulatory frameworks in achieving lasting financial market integration. The integration of financial markets will also enhance domestic resource mobilisation for the SADC regional projects and programmes. The AfDB, as the project's main financier, is committed to supporting this initiative to ensure long-term regional stability and growth.

Director of Finance, Investment and Customs at the SADC Secretariat, Mr Sadwick Mtonakutha noted that this validation is a significant milestone, expected to elevate SADC's profile in capital markets and increase access for both institutional and individual investors.

The long-term goal is to boost transaction volumes and liquidity, making the SADC region more appealing for portfolio investments. The project is part of the AfDB grant of US $7 million to SADC, which is aimed at supporting macroeconomic stability and financial integration in the region. The assistance will also contribute to deeper integration of the SADC Real Time Gross Settlement (RTGS).

CoSSE is made up of 14 Stock Exchanges in SADC, operating in 13 SADC Member States.

MEMBERS OF CoSSE

· Stock Exchange of Angola (BODIVA)

· Botswana Stock Exchange (BSE)

· Stock Exchange of Mozambique (BVM)

· Dar es Salaam Stock Exchange (DSE)

· Eswatini Stock Exchange (ESE)

· Financial Securities Exchange (FINSEC)

· Johannesburg Stock Exchange (JSE)

· Lusaka Stock Exchange (LuSE)

· Seychelles Stock Exchange (MERJ)

· Malawi Stock Exchange (MSE)

· Maseru Securities Exchange (MSM)

· Namibian Stock Exchange (NSX)

· Stock Exchange of Mauritius (SEM)

· Zimbabwe Stock Exchange (ZSE)

Read the original article on SADC.

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