•Saturday, September 09, 2006
monday the 11th september 2006 is a d-day within the stock exchange fraternity. the much awaited automatic trading system, simply ats will go live on this day. this will phase out the open outcry system and pave way for electronic trading of shares. transactions will no longer be written on the board but will be beamed and electronically projected for every one to follow the dealings. the trading floor located at first floor of nation centre will still be a much visited 'palace' since all the brokers will still be congregated there religiously. dealers will be armed with a flash disk, cd or a diskette (wow!) of their excel-saved orders to the trading floor and into their designated computerized compartments within the trading floor.
no more shouting and haggling, ats will automatically match orders. surely some jobs are on the line. unlike the tea harvesters and the fiery central organisation of trade union boss one francis atwoli, who are embroiled in a deadlock with tea plantation owners over the introduction of tea picking machines, nse brokers have welcomed the ats system albeit grudgingly. millennium corporation from sri lanka or wherever who brought us the central depository system a.k.a cds and share investors are the ultimate winners. trades will be taking a maximum of three days to settle, buy on a monday and sell them by thursday. dealers manipulation of the market prices will be severely limited and their larger than life lifestyles will for once be checked, though to a limit. i am sure there will be loop holes to exploit, necessity is still the mother of invention my friends. no one knows the father yet.
well, nse is still a mile away to achieve full automation including by the minute online update of dealing progress, integration of broker systems with ats and cds as well as brokers enhancing their systems to cover prompt online trading. slowly we are seeing the disappearance of prompt trades and secret nominee accounts, choreographed share price increases, unchecked across the book trades that have been an avenue of ripping off unwary investors.
the brokers are under hellish pressure to professionalize their operations, improve their customer relations, perfect service delivery and enhance their systems to be more efficient and allow for online management of accounts. capital markets authority is under pressure to license more brokers as the clientele base permutates. the government is being pushed from all directions to privatise more money minting parastatals. though the govt have to mark time to allow the trancentury merchants of venice to capitalise on the deals.
sadly a number of the brokers are overwhelmed by the share craze that hit the market during the kengen ipo. one wonders what will happen when other gems like safaricom, kenya re, suntra stocks, eveready, nakumatt, mega bank, nse, pipeline as well as further privatisation of mumias and national bank hits the market. one broker has even adopted a policy of operating from nine am to three thirty pm, chasing clients who want to be served before nine or after eight (they have a casually dressed and rude ceo who literally does that on their main door). that broker seem to have raked enough money and if you chance to threaten to leave coz of their black and white services, they are more than happy to send you packing. of course, after waiting for your sale or ipo refund cheque for more than a month and nasty feedback that the system is down so no cheques are being processed at the time. this is very frustrating for most investors. unfortunately, where you think you will have better services coz of word of mouth referrals you have to queue on the street announcing to all and sundry including paparazzis and githongoisers* that umehepa job.
i feel that ats will be a comet to some brokers, hot, heavy, impactful and out of this world crunching lazy bones into smithereens and plutonizing others from the planetary knighthood.
*githongoisers – acquaintances, colleagues, buddies etc who smile and talk to you nicely when they see you queuing on the street waiting to sell or buy shares only to tell on you later.
no more shouting and haggling, ats will automatically match orders. surely some jobs are on the line. unlike the tea harvesters and the fiery central organisation of trade union boss one francis atwoli, who are embroiled in a deadlock with tea plantation owners over the introduction of tea picking machines, nse brokers have welcomed the ats system albeit grudgingly. millennium corporation from sri lanka or wherever who brought us the central depository system a.k.a cds and share investors are the ultimate winners. trades will be taking a maximum of three days to settle, buy on a monday and sell them by thursday. dealers manipulation of the market prices will be severely limited and their larger than life lifestyles will for once be checked, though to a limit. i am sure there will be loop holes to exploit, necessity is still the mother of invention my friends. no one knows the father yet.
well, nse is still a mile away to achieve full automation including by the minute online update of dealing progress, integration of broker systems with ats and cds as well as brokers enhancing their systems to cover prompt online trading. slowly we are seeing the disappearance of prompt trades and secret nominee accounts, choreographed share price increases, unchecked across the book trades that have been an avenue of ripping off unwary investors.
the brokers are under hellish pressure to professionalize their operations, improve their customer relations, perfect service delivery and enhance their systems to be more efficient and allow for online management of accounts. capital markets authority is under pressure to license more brokers as the clientele base permutates. the government is being pushed from all directions to privatise more money minting parastatals. though the govt have to mark time to allow the trancentury merchants of venice to capitalise on the deals.
sadly a number of the brokers are overwhelmed by the share craze that hit the market during the kengen ipo. one wonders what will happen when other gems like safaricom, kenya re, suntra stocks, eveready, nakumatt, mega bank, nse, pipeline as well as further privatisation of mumias and national bank hits the market. one broker has even adopted a policy of operating from nine am to three thirty pm, chasing clients who want to be served before nine or after eight (they have a casually dressed and rude ceo who literally does that on their main door). that broker seem to have raked enough money and if you chance to threaten to leave coz of their black and white services, they are more than happy to send you packing. of course, after waiting for your sale or ipo refund cheque for more than a month and nasty feedback that the system is down so no cheques are being processed at the time. this is very frustrating for most investors. unfortunately, where you think you will have better services coz of word of mouth referrals you have to queue on the street announcing to all and sundry including paparazzis and githongoisers* that umehepa job.
i feel that ats will be a comet to some brokers, hot, heavy, impactful and out of this world crunching lazy bones into smithereens and plutonizing others from the planetary knighthood.
*githongoisers – acquaintances, colleagues, buddies etc who smile and talk to you nicely when they see you queuing on the street waiting to sell or buy shares only to tell on you later.
|
4 comments:
hope all goes well when the switch is made
@bankelele,
they have done several trials since the firts trial around july backfired. hopefully all contingencies have been anticipated and catered for.
op stockbrokers dont identify loophooles b4 cma n' nse do coz investors wataumia.
c.e.o's wanafaa kuwa respectable people sio wenye wanang'ang'ania job na masecurity. kwani kukaa kwa entrance ni part of their job description?