A World Bank-assisted project to automate the Ghana Stock Exchange (GSE) is nearing completion, with the electronic depository functions becoming operational as the exchange excels amid a crippling global financial market.
The GSE is joining the class of automated capital markets at a time when the exchange “can take advantage of technology to be ahead of most African markets,” GSE general manager Ekow Afedzi said.
Estimated at a cost of US$1.88 million, the automated trading platform is expected to facilitate real-time online trading.
The platform consists of an electronic clearing and settlement system, which will launch alongside electronic trading within the next few weeks. A securities and depository system will be managed separately by a GSE subsidiary.
The exchange has been very creative by setting up a clearing house separate from other activities, Ekow said.
Hardware and software for the GSE automation has been acquired from the Pakistani Stock Exchange Lahore, and Pakistan’s Infotech has completed the installation of facilities for the trading platform, which will run on the Ultra Trade software application.
The new technology will allow brokers to trade on their clients’ behalf from any point at any time, while enabling both day and margin trading, Afedzi noted. Other features of the system include the borrowing and lending of securities on the market.