How does technology integrate African markets globally?

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Merlin Rajah, Head of Equities Electronic Product at Absa, emphasizes that technological integration is vital for global access to Africa's trading markets.

Company NewsHistorically, Africa has been perceived as a continent brimming with untapped potential. Yet in recent years, significant strides in technology, infrastructure, and regulatory frameworks have propelled it into the spotlight of international financial markets. Today, Africa stands at the intersection of opportunity and innovation, leveraging its vast resources, growing consumer base, and strategic geographical position to forge new pathways in global financial trading.

While South Africa has successfully positioned itself to rival developed markets, access to and between other African markets has previously proven challenging for global buy-side institutions. What is more, like several other jurisdictions, many African markets have witnessed a decline in liquidity over the past year as investment flows shift towards the United States, Asia, and the Middle East.

Trade automation and enrichment are also sweeping through South Africa, driving the region forward to the next stage of electronic trading and bringing the market to a level playing field with other, more developed nations. South African brokers are harnessing the power of machine learning to automate crucial steps within the trade lifecycle and smooth out key processes into streamlined digital workflows.

In 2023, the Johannesburg Stock Exchange introduced Colo 2.0, which removes connectivity barriers of entry into South Africa for various types of firms looking for easy entry into the marketplace. This datacenter offers both virtual and physical server options, with comprehensive connectivity to SE services at a minimal monthly cost.

 

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