Trading of shares at the Nairobi Securities Exchange (NSE) via the internet will  being implementation by most Kenyan stock brokers starting December this year following an initiative by the East African Securities Exchanges Association (EASA) to automate the entire process of transacting securities in East African markets.

At the 20^th East Africa Securities Exchanges Association (EASA) Meeting held last week in Nanyuki (Kenya), the heads of the Kenya, Uganda and Tanzania stock exchanges agreed to follow up and regionally implement the Broker Back Office System (BBO) which makes the entire process of transacting in securities automated thereby allowing  trading of  shares over the internet as well as  other electronic platforms, according to the official press release on the  EASA meeting.

The BBO system minimizes manual intervention in transacting securities by linking with the Automated Trading System (ATS) and Central Depository System (CDS) thus enabling complete share transactions to be carried out online without the need for direct interaction with a stockbroker as is the case currently. CDS provides clearing, delivery and settlement services for all securities traded at the Nairobi Securities Exchange while the ATS is the electronic platform used for all share transactions at the Nairobi bourse.

Sources as the NSE told Pesatalk that internet trading is due for full implementation starting around December this year, adding that Kenyan stockbrokers will probably start with a pilot phase to test the internet trading platform with key clients initially.

So far, only CFC Stanbic and Dyer & Blair Investment banks currently offer the internet trading facility to their clients.  CFC Stanbic told Pesatalk that the internet share trading platform involves the creation of an online profile complete with a username and password, where clients can log in and place buy and sell orders for shares on the NSE, or view their CDS statements among other related services.

According to the East African Securities Exchanges Association press release, the Broker Back Office System will also support Initial Public Offers (IPOs), mobile phone trading, portfolio management and processing of complaints. Additionally, internet trading will expose more people across the country to investing in shares while giving Kenyans in the diaspora easier access to the local stock market.