SADC Stock Exchanges Validate Interconnectivity Hub Project

By Ilyana Sithole

The Committee of SADC Stock Exchanges (CoSSE) has validated the specifications for the Smart Order Router platform, a crucial component of the Interconnectivity Hub Project. This development marks a significant step towards establishing a harmonized securities market environment within the Southern African Development Community (SADC).

The Interconnectivity Hub Project, launched in 2014, aims to create a multi-directional trading link among SADC stock exchanges. This platform will enable investors to trade securities across the region, subject to applicable laws and regulations. The project is supported by the African Development Bank (AfDB), which has provided a grant of US$7 million to SADC.

CoSSE Chairman, Mr. Collen Tapfumaneyi, emphasized the importance of this initiative in harmonizing listing and trading rules, enhancing block trading, and promoting regional economic integration. Dr. Banda Lufeyo from the AfDB highlighted the critical role of harmonizing regulatory frameworks in achieving lasting financial market integration.

The validation of the Smart Order Router specifications paves the way for the procurement, hosting, and implementation of the platform. This platform will facilitate seamless cross-border investments and trading, boosting transaction volumes and liquidity within the SADC region.

The Interconnectivity Hub Project is expected to increase access for both institutional and individual investors, making the SADC region more appealing for portfolio investments. It will also contribute to deeper integration of the SADC Real Time Gross Settlement (RTGS) system.

CoSSE is made up of 14 stock exchanges operating in 13 SADC member states. Members of CoSSE include:
* Stock Exchange of Angola (BODIVA)
* Botswana Stock Exchange (BSE)
* Stock Exchange of Mozambique (BVM)
* Dar es Salaam Stock Exchange (DSE)
* Eswatini Stock Exchange (ESE)
* Financial Securities Exchange (FINSEC)
* Johannesburg Stock Exchange (JSE)
* Lusaka Stock Exchange (LuSE)
* Seychelles Stock Exchange (MERJ)
* Malawi Stock Exchange (MSE)
* Maseru Securities Exchange (MSM)
* Namibian Stock Exchange (NSX)
* Stock Exchange of Mauritius (SEM)
* Zimbabwe Stock Exchange (ZSE)

The validation of the Interconnectivity Hub Project is a significant milestone towards realizing the vision of a harmonized securities market in SADC, fostering regional economic integration, and enhancing investment opportunities for investors.