The Malawi Stock Exchange, in conjunction with the Reserve Bank of Malawi are in the course of automating the Malawi Stock Exchange trading processes, the bourse said in a communique. The project involves the establishment of an Automated Trading System (ATS) at the Malawi Stock Exchange as well as the introduction of electronically held certificates at the Reserve Bank of Malawi Central Securities Depository (CSD).
Electronic trading is expected to commence by end of May 2018 and only securities that have been transferred and registered in the CSD will be traded in the ATS. Going forward, after implementation of the systems, all new IPOs and subsequent trading will be made in the CSD and the ATS, respectively.
The CSD is commencing the dematerialization process of the existing paper certificates and therefore requires that shareholders open investor accounts and dematerialize their securities (migrating from paper based title to electronic securities) in preparation for the trading of electronic based securities following implementation of the systems.
Current shareholders are consequently required to contact a registered stock broker or custodian to dematerialize their stock holdings. Stock holders will be required to complete a Stock Holding Declaration and Consent to Dematerialize form upon presentation of the physical certificates; a signed and stamped copy of the form will be provided to the holder. The dematerialization process will run from 30th April, 2018 to 30th September, 2018.