Kenyan share trading set to move towards same-day settlement

NAIROBI, Nov 10 (Reuters) - Kenya’s securities depository and settlement firm is ready to launch a new trading platform from April that will allow trades to be settled in one day, it said on Thursday.

The Nairobi Securities Exchange (NSE) now uses a system in which transactions are completed three days later, known as T+3. Experts say same-day trading and settlement would deepen liquidity on the bourse.

Trades are handled by the Central Depository and Settlement Corporation (CDSC), which provides clearing, settlement and depository services for listed securities.

“April next year is when we will launch the new system, and then after that is when we can talk about day trading,” Rose Mambo, chief executive officer of CDSC, told reporters.

Mambo said the system could handle same-day trades but said regulatory approval was needed before this would go ahead, adding that the Capital Markets Authority would likely need to develop new regulations and guidelines before this happened.

The securities settlements platform had initially been expected to go live a year ago, but was delayed to ensure the new system worked seamlessly with the one working on the bourse.

The CDSC was looking at the possibility of adding stocks from bourses in other countries to its depository, starting with Nigeria, Mambo said, adding tests were going on.

“By the time we implement the new system in April next year we should be able to open up the space for any Kenyans or Nigerians to trade shares across the two countries,” she said. (Reporting by George Obulutsa; Editing by Greg Mahlich)