September 5, 2012:
The Nairobi Securities Exchange (NSE), Kenya Association of Stockbrokers and Investment Banks (KASIB), Capital Markets Authority (CMA) and Central Depository and Settlement Corporation (CDSC) have launched the NSE Broker Back Office (BBO) System.
The BBO System automates the back office. The back office will be connected with the trading platform and the clearing and settlement platforms. The entire process of transacting in securities will now have minimal manual intervention.
The BBO system has the following benefits:-
- It automates the back office and enables senior management to monitor and audit activities through suitable alerts and exception reports;
- It permits internet access to the system, helping Trading Participants expand their services across all forty seven (47) counties;
- It supports IPOs, portfolio management and complaints processing;
- It supports internet and mobile phone trading.
During the official launch ceremony held at the Nairobi Securities Exchange, Mr. Bob Karina the Vice Chairman of the NSE stated,” This is an affirmative step that the capital market players and industry as a whole has taken towards achieving international standards.”
The BBO system reduces the risk of trading in securities listed on the Exchange. It will allow Kenyans in the diaspora to access the stock market.
The BBO system will curb fraudulent activities by:
- Automatically classifying accounts as dormant depending on the level of activity and requires additional authorization for all transactions made on such accounts.
- Enforcing a strict password policy, using encrypted transmissions which repeatedly times out inactive sessions and restricts concurrent logins into the system.
- Providing insightful reports on the frequency and nature of complaints, their financial impact and the time taken to resolve them.
- The BBO system will also support further improvement such as:-
- Internet access to the Automated Trading System, which will assist Trading Participants to expand their services;
- IPO, portfolio management and complaints processing;
- Internet and mobile phone trading.
The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE).
FOR FURTHER INFORMATION PLEASE CONTACT
Ms. Carol Karugu
Investor Relations and Communications Manager
Nairobi Securities Exchange
Tel: +254 20 2831000