TALKING

The advent of smart order routing technology has also revolutionised the way that trades are executed in South Africa , enabling investors to access liquidity across multiple exchanges and dark pools in the country . This not only enhances market efficiency , but also provides investors with greater flexibility and control over their cost management , providing best execution to their trading strategies .

Connecting African trading hubs

As the South African ecosystem continues to advance its electronic trading infrastructure , it is becoming a market to watch for overseas investors . Attention is particularly drawn as liquidity cycles evolve , numerous listings are planned for 2024 , and certain countries contemplate repatriating funds into the country . of firms looking for easy entry into the marketplace . This datacentre offers both virtual and physical server options , with comprehensive connectivity to SE services at a minimal monthly cost .

Ideal for software vendors or proprietary trading firms , this solution allows for testing in the JSE environment , live market data collection , and evaluating some basic strategies before deploying more sophisticated hardware . Many African exchanges should look to follow suit as the South African blueprint proves successful .

There is a growing number of global financial institutions looking to trade products across the continent . The next wave is to roll out electronic trading capabilities further , helping investors to access lucrative – yet often untapped – markets .

International investors are voicing their growing need for electronic market connectivity across the African continent , an area that the South African ecosystem is primed to fulfil .

In 2023 , the Johannesburg Stock Exchange , JSE introduced Colo 2.0 , which removes connectivity barriers of entry into South Africa for various types

For instance , Kenya is a fast-growing , dynamic economy , with a wealth of raw materials and infrastructure needs that make it an ideal destination for overseas investment . Egypt , Botswana , and Mauritius are also key regions to develop electronic trading capabilities , particularly as demand to access these markets continues to grow . For example , the Namibia Stock Exchange could significantly boost its trading value by embracing change and enabling direct market access .

As this exchange is currently a partner to the JSE , this move would greatly simplify market integration and access for vendors , liquidity providers , and banks , potentially transforming its financial landscape .

Yet for international investors to get the most from the opportunities on the continent , they must seek out a partner that understands the nuances of African markets , across borders , languages , and cultures . While technology is acting as a bridge between the continent and global markets , the human touch in these markets is still essential to ensure high standards of governance , seek out liquidity , best execution , and best market practice .

Trading is almost unrecognisable from what it was twenty years ago . Today traders in Africa have access to powerful machine learning tools , a suite of algorithms , and advanced pools of liquidity , helping to improve global connectivity and unlock new markets for international investors .

Advancements in technology are paving the way for a new era of international collaboration , enabling African markets to tap into the global market , and vice versa . Africa ’ s trading ecosystem serves as the gateway to unlocking the huge potential of untapped markets for international investors . p

32 INTELLIGENTCIO AFRICA www . intelligentcio . com