, NAIROBI, Kenya, Sep 5 – In efforts to further curb fraudulent activities on the local bourse, the Nairobi Securities Exchange (NSE) along with other players in the capital market has launched a Broker Back Office (BBO) System.
The BBO System automates the back office connecting it with the trading platform and the clearing and settlement platforms.
The system will enable senior management to monitor and audit activities through alerts and exception reports as well as permit Internet access to the system, helping trading participants expand their services across all 47 counties.
In addition it will support IPOs, portfolio management and complaints processing and support internet and mobile phone trading.
NSE Vice Chairman Bob Karina said this is an affirmative step that the capital market players and industry as a whole have taken towards achieving international standards.
“It brings a lot of confidence to the market in the sense that if anything happens to your account the investors will get alerts and will be able to check and complain to authorities,” he said.
Information Permanent Secretary Bitange Ndemo said the BBO system reduces the risk of trading in securities listed on the Exchange and will allow Kenyans in the Diaspora to access the stock market.
“We are improving the transparency in the stock market. A few years ago the perception was that it was a private club where few people made money,” he said.
The system will automatically classify accounts as dormant depending on the level of activity and require additional authorisation for all transactions made on such accounts as well as enforce a strict password policy.