Paul Bwiso, the USE CEO
The Uganda Stock Exchange (USE) has launched a new electronic account opening system for investors aimed at dematerializing operations for a more efficient and faster automated settlement under a new central depository and automated system.
Speaking at the virtual launch on Tuesday, Paul Bwiso, the CEO of Uganda Security Exchange, said that the new electronic account opening system will facilitate investors to share and access their account and to create account for new investors independently without the assistance of brokers.
He noted that with the system minimizing the use of hard documents while trading in stock exchange, the system will help in faster decision making and monitor accounts.
“To simplify access to information and decision making for investors, the electronic account opening system will share and access the portal to open accounts and monitor existing investors independently,” he said.
Bwiso added that USE have signed a Memorandum of Understanding with National Identification Registration Authority (NIRA) to share with them information for verification purposes to ensure stock exchange traders meet the criteria and also comply with Capital Markets Act.
“We have signed an MOU with NIRA to give us information to independently verify. A lot of organisations are already doing it to ensure that people meet criteria,” he said.
Bob Musinguzi, The Lead, at the Security Central Depository said the new solution will currently target Ugandan retailed clients with a plan to expand to foreign investors.
He said that this the electronic account opening is the first phase of the system, where the client will access the portal 24 hours.
Uganda Securities Exchange has over 37,000 investors on the stock exchange of which 4, 000 are institutions.
According to USE, the stock exchange business has been under manual environment since 1997, with listed companies issued certificates of investments based on registrars, exchange of brokers and printing of certificates after transactions.
It’s until 2014 that investment in stock exchange had a new trading system with a central depository and automated system.
By Drake Nyamugabwa
