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The traditional risk controls and safeguards that relied on human judgment and manual speeds in trading will from now on be a thing of the past in Uganda. Today at Serena Hotel, the Uganda Security Exchange (USE) has launched the first ever (ATS) Automated Trading System in Uganda that will eliminate the manual and/or floor-based trading environments, to a fully automated system to evaluate and control automated trading. The ATS has been set-up to automatically buy and sell securities on an exchange. It will also enhance liquidity and flexibility with regard to the time it takes to conclude a deal. The current settlement period is 5 working days but with automation this will end the inefficiencies brought about by paperwork to a period of about 3 days in line with international standards.
Previously, Uganda relied on a manual and semi-automated system, now with the new Automated Trading System in Uganda, electronic trading in automated market center will be possible and it will enable USE execute repetitive tasks at speeds with orders of magnitude greater than any human equivalent.
The CEO Uganda Security Exchange Mr Paul Bwiso said:
[signoff icon=”quote-circled”]”The new USE ATS is a web-based system and can be accessed at your home and in a matter of weeks you will be able to access it on your mobile phone. The system is on a secure and enhanced private cloud and can be moved from one place to another. It will enable private sector raise funds efficiently and more effectively. For example Kakira Sugar was able to raise over UGX 75bn through USE and Standard Chartered bank rose over UGX 40 bn through the exchange. It will provide cheap and patient capital in a long-term and add value to local firms that want to grow their business. We shall also be able to turn around xxx of IPOs. Bond Index has also been introduced to benchmark and give you and indication on how the market has performed.”[/signoff]
Speaking at the launch, the Prime Minister of Uganda Hon Dr Ruhakana Rugunda said that the USE this is a backbone of our stock market and it will have an impact on the welfare of millions of Ugandans looking to save for college or their retirement. It will enable the flow of funds from investors to entrepreneurs. USE is supported by robust and legal platforms. He pledged that the government will support and take the lead in regional integration of East African community by working hand in hand to put common legal frameworks and connect Uganda to the regional Stock Exchange. The Prime Minister officially kick-started off the market and trading by ring the traditional bell to open the security exchange.
Trading online coming soon
Investors will have access to the automated trading service through their broker’s automated trading service and will still have to fund their accounts before placing orders with their brokers. Once fully funded for automated trading, the investor’s orders shall be routed to the ATS through the broker and executed according to the terms the investor has selected. In the near future, USE has promised to enable investors to carry out online trading through their brokers trading system. Mobile apps and connectivity will be available in Q4 by October and USE is still on discussions with several stakeholders including the telecoms, NITA and other 3rd party vendors exchanging with them the necessary APIs and data to revolutionize online and mobile trading in Uganda.