Source: Nasdaq OMX
The NASDAQ OMX Group, Inc. (NDAQ) today announced that it has been selected as the technology partner for a new exchange, East Africa Exchange.
NASDAQ OMX will deliver its widely deployed X-stream technology to power trading and clearing for the nascent exchange.
Through private sector led investment and under the terms of an agreement signed with the Government of Rwanda, the East Africa Exchange aims to increase regional market efficiency and liquidity as well as giving the region's population of 130 million, especially smallholder farmers, better access to markets. The exchange will initially focus on establishing an auction facility and spot trading for agriculture and non-agriculture commodities, but will also develop futures trading across the East Africa Community region.
NASDAQ OMX's X-stream technology will handle trading and clearing of equities and derivatives securities and is scheduled to roll out during the third quarter of 2013. NASDAQ OMX was selected in competition with a number of global exchange technology providers.
The East Africa Exchange will operate on a private, commercial basis, and has been established through a joint venture project by four investors: Berggruen Holdings, Heirs Holdings, 50 Ventures and Ngali Holdings.
"This is a significant honor for us to be chosen to help launch a new exchange in Africa," said Lars Ottersgard, Senior Vice President and Head of Market Technology. As the East Africa Exchange grows and expands its vision for greater market efficiency, liquidity and transparency, we are dedicated to supporting its efforts through our proven trading and clearing technology."
NASDAQ OMX's X-stream technology is currently used by over 25 exchanges globally.