Effective Friday 23 September 2022, Botswana Stock Exchange (BSE) went live with a new Central Securities Depository (CSD) system, a new Automated Trading System (ATS) and the connectivity to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
BSE says these three technology systems represent a modernization of the BSE’s technology infrastructure that aims to improve the resilience of the market, network security, operational efficiencies and align with international best practice in order to make the BSE competitive in the global securities market.
The CSD system that has been phased out was introduced in 2008. The implementation of the new CSD system has commissioned the settlement of market transactions on the BSE at Bank of Botswana (BoB) through the Botswana Interbank Settlement System (BISS) which, just like the CSD system, is linked to the SWIFT network.
In addition, the CSD system comprises of new functionalities and capabilities that expand its services and products such as the centralised custody for all securities in the market including government securities, Electronic Annual General Meetings (E-AGMs), among others. In due course, the system will provide customers remote access to their CSD accounts and statements.
The new ATS is an upgrade of the ATS that was implemented in 2012. The salient features of the new ATS include an improved Request for Quotation (RFQ) mechanism which is popular for trading of bonds, a bond calculator, availability of micro auctions which can be used for market-making, as well as improved information dissemination capabilities. The new ATS and the CSD system are integrated.