The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) (NASDAQ OMX Group), today announced that it has been awarded a one year appointment by ESMID(Efficient Securities Markets Institutional Development) to develop the local bond markets in Kenya, Tanzania, Uganda and Rwanda.
Bond trading is at a nascent stage in Kenya, Uganda and Tanzania and is non-existent in Rwanda. For Kenya, Uganda and Tanzania, changes in regulation are needed so that bonds can trade electronically. ESMID will work together withthe regulatory authorities and exchanges to help create a more conducive environment for trading bonds as well as further develop the market structure for bond trading, including making improvements in clearing and settlement. ESMID will assist Rwanda in taking appropriate steps to realize an efficient market.
“We look forward to the development of securities these markets in Eastern Africa. A well-functioning securities market is a necessity to create growth andprosperity," says Magnus Böcker, President at NASDAQ OMX.”
The securities markets in Eastern Africa are underdeveloped, especially in the important area of bonds since a well-functioning bond market serves to support investments in local infrastructure, thus providing and valuable tool for the growth of the economy and welfare. To help support greater development of securities markets, NASDAQ OMX, SIDA (The Swedish Agency for International Development Cooperation) and the World Bank took the initiative to establish ESMID a few years ago.
SIDA and the World Bank are currently steering ESMID activities, which are wholly financed by Swedish contributions of approximately SEK 40 million.
“We hope to be able to offer our many years practical experience from developingbond markets in the Nordic countries, as well as world wide, supporting our customers and partners,” adds Magnus Böcker.
NASDAQ OMX's involvement in Eastern Africa is one of several projects NASDAQ OMXhas in emerging markets. Armenia and Kazakhstan are examples of other countries where NASDAQ OMX has or has had activities.
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It deliverstrading, exchange technology and public company services across six continents, and with over 3,900 companies, it is number one in worldwide listings among major markets. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; the OMX Nordic Exchange, including First North; and the 144A PORTAL Market. The companyoffers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX technology supportsthe operations of over 60 exchanges, clearing organizations and central securities depositories in more than 50 countries. OMX Nordic Exchange is not alegal entity but describes the common offering from Nasdaq OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.