First licence granted for pan-African exchange operator
ALTX Africa Group, a new exchange operator
focusing on East Africa, has been granted its first licence to launch a venue
ALTX plans to launch a securities and
derivatives market across the East African region and intends to widen its
presence across the continent in the future.
It has also agreed to a partnership with
London-based GMEX Technologies, a subsidiary of Global Markets Exchange Group
(GMEX), founded by former Chi-X Europe COO, Hirander Misra.
The partnership will see ALTX use GMEX’s
ForumMatch exchange trading platform, as well as its market surveillance and
trader workstation technology. GMEX will set up a London routing hub to connect
to ALTX and facilitate trading liquidity into Africa. It is also in talks to
acquire a strategic equity stake in ALTX.
ALTX said its Ugandan exchange is expected
to go live in Q4 2014 and will offer trading in cash equities and bonds, with
other asset classes to follow in due course.
It said the securities sector in East
Africa is showing steady growth and is undergoing significant reform due to
regional efforts to create a common market thanks to the East African Community
Common Market Protocol.
Africa is also benefitting from
liberalisation of its pensions sector, enabling fund managers to invest in a
wider range of assets.
ALTX was founded by Jatin Jivram, who
previously worked in the IT and real estate sector, and Joseph Kitamirike,
former CEO of Uganda Securities Exchange.
Kitamirik, CEO of ALTX, said: “We have the
privilege to lead the process of interconnecting Africa’s markets, to open them
up to global liquidity and to deliver market opportunities with best-in-class
technology provided by GMEX.”
Kitamirik is hopeful the partnership will help bolster economic growth in Africa by easing flows of capital and increase the range of securities and derivatives available to trade in the continent.