Rinsy Ansalam CEO and Managing Director Bourse Africa Limited
African markets: Characteristics Numerous exchanges, primarily equities Higher transaction costs Lack of depth and liquidity Not too many brokers Cost to the participants Vs Revenue to the Exchange Vs Liquidity Where will the next growth come from?
African markets: Opportunities Experience of the exchanges in their markets are valuable Existing participants and their capabilities Creating a growth model and enhanced revenue model Integrating the experience and capabilities into a wider platform
Pan-African Exchange: Building Blocks Products: Unique products to serve various needs of stakeholders risk management, investments and speculation Participation: membership from across Africa, Asia and Europe Entry barriers: Low entry barriers from a cost perspective Technology: technology that allows Direct Market Access for participants at low variable costs Transaction Cost: low transaction cost to facilitate increased liquidity Regulatory infrastructure: Stable and world class regulatory infrastructure at par with developed markets Jurisdiction: Stable jurisdiction inclined towards capital market development Cooperation: commercial cooperation between the existing stock exchanges and pan African exchange(s)
Introduction to BOURSE AFRICA Africa focused Global multi asset Exchange based in Mauritius; Bringing international trading & investing community into the African markets Licensed and regulated by Financial Services Commission, Mauritius; Awarded as Most innovative Capital Markets Regulator for 2012 by Africa Investor Set up by Financial Technologies Group India, world s largest creator of greenfield exchanges, with a vision of creating unique marketplace in Africa Presently offers Currency and Commodity derivative segments (futures & CFDs); Licensed by FSC to introduce Equity derivatives Index futures and options; Single Stock futures and options Current Trading time: 06.00 to 18.00 GMT CURRENT PRODUCT OFFERING GOLD SILVER CRUDE OIL EURUSD GBPUSD YENUSD ZARUSD USDMUR www.bourseafrica.com
Mauritius and FSC Mauritius is a key international financial centre (IFC) which has facilitated the capital flow into Asia, especially to India quite well since 1991 Capital flow through Mauritius to Africa has overtaken the flow to Asia during the last 18 months Capital transiting through Mauritiusisestimatedis to be around USD 900 billion (annually) Mauritius is a democracy with fully convertible and stable currency No capital gains tax; effective corporate tax of 3% for global business companies Financial Services Commission (FSC) is regarded as a mature and innovative regulator Signatory to the IOSCO MMoU Agreements of cooperation among numerous regulators in Africa Regulation allows remote membership (without incorporating a company in Mauritius) of Bourse Africa
Developing the Pan African Exchange Bourse Africa have entered into agreements with the Ghana Stock Exchange and Nairobi Securities Exchange to listtheir their key indices asfutures contracts on Bourse Africa CFDs in commodities and currencies launched in April 2013 have emerged as key to the development of retail markets Technology Desktop, WEB and Mobile allowing DMA to end clients African currencies to be launched as futures contract to develop the currency risk management market across Africa Low cost access for African participants to international commodities and currencies Low membership fee Cooperation with existing exchanges should result in new product development, deepen the local markets, create the experience for market participants which should allow development of derivative markets in respective countries
Catalyzing African Financial Market Growth Bourse Africa PRODUCT RANGE Commodities Global & African Currencies African Indices CFDs & ETFs IPO, Dual Listing Trading Leveraged exposure to global & African products; CFDs suitable for small size retail investors Investors more secure trading on an exchange Risk Management Dollar denominated African products eliminates currency risk; African Indices to enhance participation in underlying markets A global hub for African risk management Capital Raising Highly liquid market with global participation for capital raising; Create exit option for PE Investors and allow African investor participation p State of the art technology Low transaction ti charges African & Global l Products Pan African Collaborations www.bourseafrica.com
Catalyzing African Financial Market Growth Commodities Global & African Currencies African Indices CFDs Equities & Fixed Income GOLD EUR/USD GSE CI (Ghana) GOLD IPO SILVER GBP/USD NSE 20 (Kenya) SILVER Dual Listing CRUDE OIL JPY/USD CRUDE OIL ETFs Agro Commodities ZAR/USD Other African equity indices EUR/USD Fund listing Base Metals USD/MUR GBP/USD GHS/USD Global Commodities Interest Rate Products ETNs NGN/USD KSH/USD UGX/USD G 20 Currencies Equity Indices Single Stock 1 st exchange to In progress to In progress to launch CFDs in launch African diversify African Africa Index Futures currency offerings Africa s Risk Management, Trading & Capital Raising HUB
Thank You Rinsy Ansalam, y Managing Director & Chief Executive Officer rinsy.ansalam@bourseafrica.com