Lack of law delays CDS project
Feb 15, 2006
LACK of law has delayed the launch of the Central Depository System (CDS) at the Uganda Securities Exchange (USE).
By Sylvia Juuko
LACK of law has delayed the launch of the Central Depository System (CDS) at the Uganda Securities Exchange (USE).
The introduction of CDS, a system where transactions are cleared electronically, is expected to speed-up the trading process and boost activity at the bourse.
The CDS acts like a bank of shares in an integrated and central manner with each investor owning a securities account through which shares are registered.
“The law is critical for us. We shall move when it is in place. We already have the infrastructure,†said Harriet Kiwanuka, the USE research and market development manager.
She said the German Technical Cooperation facilitated the installation of the system. Kiwanuka said the bourse still uses a manual system for trading.
With this system, clearing and settlement takes between five and six days. Market regulator, the Capital Markets Authority (CMA) has drafted the bill, awaiting approval by Parliament.
“We are stuck until the bill is passed. We have to wait for the elections. “I have no doubt it will be a priority in the next Parliament,†said Japheth Katto, the CMA chief executive officer. Brokers agree the CDS would boost transactions.
Ends
LACK of law has delayed the launch of the Central Depository System (CDS) at the Uganda Securities Exchange (USE).
The introduction of CDS, a system where transactions are cleared electronically, is expected to speed-up the trading process and boost activity at the bourse.
The CDS acts like a bank of shares in an integrated and central manner with each investor owning a securities account through which shares are registered.
“The law is critical for us. We shall move when it is in place. We already have the infrastructure,†said Harriet Kiwanuka, the USE research and market development manager.
She said the German Technical Cooperation facilitated the installation of the system. Kiwanuka said the bourse still uses a manual system for trading.
With this system, clearing and settlement takes between five and six days. Market regulator, the Capital Markets Authority (CMA) has drafted the bill, awaiting approval by Parliament.
“We are stuck until the bill is passed. We have to wait for the elections. “I have no doubt it will be a priority in the next Parliament,†said Japheth Katto, the CMA chief executive officer. Brokers agree the CDS would boost transactions.
Ends