Bond trading in Namibia by banks and stockbrokers is expected to grow after the Namibian Stock Exchange (NSX) announced the successful “go-live” of a new bond trading system. The Automated Trading System (ATS) is provided by South Africa’s Securities & Trading Technology (STT), a veteran global supplier of bond market, equity and many other capital markets systems.
The new system went live on 13 October 2023.
According to STT, the system is designed to provide the NSX with a seamless, reliable, and transparent trading platform. The ATS offers improved order execution and streamlined processes for a superior trading experience for investors and market participants alike. The company says it underscores STT’s commitment to empowering exchanges with innovative and flexible solutions.
Tiaan Bazuin, CEO of the NSX said in a local news report in The Brief: “This represents an expansion of our market participants, as some of the banks in Namibia are now capable of on-market trading, alongside members of the stockbroking community.
“Increasing on-market trading of bonds has been a goal of the SADC Finance protocols, and we hope to see widespread adoption of on-market bond trading. The use of the system should lead to increased liquidity and long-term market growth.
“The NSX is committed to deepening and diversifying the Namibian capital market and is preparing for a bright economic future.”
On the implementation, he added: “The NSX is very pleased with the smooth rollout and implementation of our bond trading system. The STT system allows for more than just bonds so we hope to launch more localized trading system products in future.”
Michelle de Beer, Managing Director at STT, said in a press release: “Congratulations to NSX on achieving this significant milestone. We are excited to bring the Bond Trading Platform to the Namibian Stock Exchange, a move that underlines our dedication to driving technological advancements in the financial industry.”
The NSX was first licensed to list bonds in 1992 and the regulator, Namibian Financial Institutions Regulatory Authority (Namfisa), granted approval for the bond trading system (MITS) to be added to the licence.
The bond market in Namibia has expanded considerably over the years, including Government bonds and bonds issued by a range of corporates including Development Bank of Namibia. Also listed are 5 green and sustainable bonds. According to the 2023 Annual Report of Namfisa, the nominal value of bond trading in 2022 was N$3.2 billion ($169.7 million), nearly all in Government bonds.
The NSX issued a directive and clarification note to the NamCode in January 2022 on social, ethics and sustainability. Bazuin told a reporter from Windhoek Observer that the regional organization, Southern African Development Community (SADC) through the Committee of SADC Stock Exchanges (CoSSE) is currently running the SADC Green Bond Programme where issuers get resources and support to help raise capital through green and sustainable bonds. “If there would be an interest from a prospective Issuer for this purpose, please let us know to direct accordingly.”
