Botswana Stock Exchange (BSE) says its admission as a full member of the World Federation of Exchanges (WFE), the global industry association of exchanges and clearing houses around the world, is a key step in its internationalization strategy.
Seventy stakeholders celebrated at an opening bell ceremony at the BSE on 29 June.
The BSE reported that it joined WFE as an affiliate member in June 2016 and launched its membership upgrade process from affiliate to full member in 2022. This involved comprehensive evaluation of the exchange, the quality and depth of the market, the regulatory environment, information technology infrastructure, risk management strategies as well as anti-money laundering practices.
The WFE is the global industry group for exchanges and clearing houses including 91 member central clearing counterparties CCPs around the world. It brings together over 250 market-infrastructures from the largest financial centres to frontier markets. WFE exchanges are home to 57,656 listed companies, and the market capitalization of these entities is over $101.17 trillion; around $146.29 trillion in trading annually passes through WFE members (at end 2022).
According to its website, the WFE seeks to ensure regulatory outcomes that foster well-functioning capital markets and reinforce systemic stability in addition to developing markets. It works with members to create and agree best practices and standards for the industry.
WFE delegates did an on-site inspection on 30 and 31 March and met the management as well as the Ministry of Finance, Bank of Botswana, Non-Bank Financial Institutions Regulatory Authority (NBFIRA) , Sefalana Holdings Limited and Motswedi Securities.
In the news release the BSE says that the upgrade is recognition as it aims to integrate into global financial markets with an internationalization strategy and demonstrating that it conforms to international best practices and market standards.
Thapelo Tsheole, CEO of the exchange, said: “It is a vote of confidence on the integrity of our supervisory authorities, and our key stakeholder being the Ministry of Finance, in enabling a conducive environment for capital markets to thrive. It brings ample long term benefits for Botswana’s economy including being able to attract more foreign capital inflows”.