16 October 2014

Deutsche Börse partners with African Stock Exchange

The African Stock Exchange (AFSX) plans to use the technology and support services of Deutsche Börse's Xetra trading venue. The AFSX is a start-up based in Mauritius with the objective of offering securities trading for the whole of Africa. Xetra trading participants will have easier access to the African financial markets in future through the Deutsche Börse infrastructure. Moreover, market participants in Africa will have technical access to a large pan-European trader network. 

The trading system is based on very stable and reliable technology, and also stands out due to its low latency. This high-level technology used by Deutsche Börse at its own trading venues – Xetra and the Frankfurt Stock Exchange – makes the markets more transparent and secure. Moreover, many venues in Europe already use the trading system successfully, so it is a good choice for the African Stock Exchange and forms a strong foundation for the market launch,” said Hauke Stars, member of the Executive Board and responsible for Information Technology and Market Data + Services at Deutsche Börse.

Dhaneshwar Damry, Chairman of the AFSX said, “a truly pan African stock exchange is vital to develop local entrepreneurship and innovation that will spur job creation and accelerate the development of the African continent. This ground-breaking partnership brings together a team of talented Africans driven by a strong sense of purpose with the technology, trading partners and expertise from Deutsche Börse. The teams at AFSX aspire to contribute to Africa’s rise by establishing the financial gateway to Africa that will in turn strengthen the continent’s domestic exchanges through increased liquidity.

Deutsche Börse's trading technology is continuously developed further and already used by several exchanges in Europe. The Vienna Stock Exchange introduced it in 1999 and the Irish Stock Exchange in the year 2000. The Bulgarian Stock Exchange followed in 2008, the Ljubljana Stock Exchange in Slovenia in 2010, Malta and Prague in 2012, and the Cayman Islands and Budapest in 2013. The Eurex subsidiary Eurex Bonds also uses the trading system, and it was the basis for the Shanghai Stock Exchange's own trading system.

About Deutsche Börse's electronic trading system for the spot market:

Deutsche Börse's trading system for the spot market provides efficient access to the capital markets, supports the latest trading techniques and provides an ever-growing range of tradable securities. It sets the highest standards in terms of reliability, security, speed and innovation. Approximately 200 participants from partner exchanges and 230 European banks and brokerage firms admitted to the Frankfurt Stock Exchange from 18 countries are connected to the participant network. The network offers the highest levels of liquidity, transparency and cost efficiency. Over 1.1 million securities are currently traded using this technology – more than on any other trading platform.

About the African Stock Exchange:

The African Stock Exchange (AFSX) is the first truly pan African stock exchange that connects international and African investors to African issuers. The team at AFSX are driven African entrepreneurs, committed to forging equitable, inclusive and sustainable growth, both economic and social, for the African people. 

AFSX is leveraging the technology and support services of Deutsche Börse's Xetra trading venue to facilitate connectivity for international trading partners and ensure scalability and seamless execution. AFSX is also dedicated to enforcing world class regulatory standards for issuing companies that are to support investor confidence and ensure capital protection.

AFSX is based in Mauritius, one of the main financial hubs for Africa and benefits from strong support from local and African government bodies. AFSX has applied for a stock exchange license which is subject to the regulatory approval of the Mauritius Financial Services Commission (FSC).

Xetra® is a registered trademark of Deutsche Börse AG.

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