In a strategic move to facilitate cross-border trading and settlement of securities, promote innovation and diversification, Association of Securities Dealing Houses of Nigeria (ASHON) and five international associations have signed a Memorandum of Undertaking ( MOU) that effectively established the African Stockbrokers and Securities Dealers Association (ASSDA) in Botswana, Southern Africa.
By the MOU, jointly signed by ASHON and other founding -member securities associations from Egypt, Kenya, Mauritius, Morocco , and the West African Economic and Monetary Union, ASSDA is to deepen Africa’s financial market through cross – border trading and seamless clearing and settlement of securities among the participating markets in Africa. The President, African Stock Exchange’s Association (ASEA), Mr Karim Hajji is an observer.
The Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Patrick Ezeagu who represented Nigeria’s Capital Market at the historic ceremony in Botswana at the weekend explained that the decision to establish ASSDA was taken at a roundtable organized by the African Development Bank in Abidjan on 24th April 2019, for the African Exchanges Linkage Project (AELP).
According to him, the AELP is a co-initiative by the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB) to enable and facilitate cross-border trading and settlement of securities across participating exchanges in Africa.
A statement from ASHON provides more insight to the philosophy and benefits of the MOU: “ It would foster Pan-African investment and trading of securities, and actualize the AELP. The Members present unanimously resolved to create a Pan-African association to be called the African Stockbrokers and Securities Dealers Association (ASSDA) through which they would achieve these and other objectives.
“The membership of ASSDA shall be an association of associations constituted of full members that are registered stockbrokers or securities dealers or associations whose members deal in securities in one form or another as approved by the Governing Council of ASDDA. The AfDB and ASEA shall also serve as Observer Members of ASSDA.
“ Among the objectives of ASSDA is the deepening of financial markets in Africa by encouraging and supporting measures that shall enable and facilitate trading and settlement of securities through stockbrokers and securities dealers across exchanges in Africa. ASSDA also supports the overarching goal of boosting Pan-African investment flows, promoting innovations that support diversification needs of investors in Africa, and helping address the lack of depth and liquidity in Africa’s financial markets.
“ ASSDA shall also be the umbrella and advocacy body that shall engage with regulators, exchanges, other Pan African bodies and governments in seeking to find solutions that shall facilitate trading in securities across Africa.
“ With the signing of the MOU today, ASSDA has formed an initial caretaker committee that shall work towards mobilizing other stockbroking and securities trading associations across Africa in anticipation of a General Assembly meeting in 2020”.,