Regulator to track all deals at the bourse

• Sh48m system will allow the Capital Markets Authority, NSE and other players to share data

In a radical move to rein in all stockbrokers, the capital markets regulator has launched a surveillance system that will monitor their transactions in real-time.

The new system will track deals brokered by market players, bringing an end to a practice where lack of equal information on particular stocks led to insider trading.

It will also allow for sending of alerts on trading activities to investors and real time analysis of market data for efficient monitoring.

The Sh48 million information system dubbed “CAPIZAR MSS” will allow for sharing of information among the capital markets regulator, the Nairobi Securities Exchange and the Central Depository and Securities Control for transparency purposes.

“The system will be upgraded regularly and will help guarantee new traders of the safety of their securities,” said outgoing CMA chief executive Stella Kilonzo, whose last day in office is on Friday.

This marks the end of Mrs Kilonzo four-year term at the helm of the authority. The CMA board on Wednesday announced the appointment of Mr Paul Muthaura — the Director of Regulatory Policy and Strategy at the CMA — as acting CEO from July.

Mrs Kilonzo, whose announcement not to seek reappointment puzzled many players, owing to her performance, praised the new system saying it allows for replaying of all transactions on a particular counter whenever elements of unfair trading are suspected.

The development makes Kenya the third country in Africa to adopt a market surveillance system after South Africa and Ghana.

NSE chief executive Peter Mwangi termed the step a “quantum leap,” with features that will automatically instill self-regulation to private traders for enhanced integrity of the capital markets.