Region’s bourses shift to data vending
East African securities exchanges have shifted to data vending in an attempt to shore up dwindling revenues, resulting from low trading activity.
has learnt that the Uganda Securities Exchange has already started charging investors for its market data reports on stocks and bond trading, and the Rwanda Stock Exchange has announced plans to start imposing a fee on the same services.
These moves are part of efforts to diversify revenues away from the volatile equities markets, which have suffered massive foreign investor exits due to high interest rates in the US.
The Ugandan bourse started implementing its data vending services on January 1.
Fee on reports
The USE, which has been offering market data free for over 20 years, has now imposed a fee on its daily reports and information on listed firms and requires interested parties to subscribe to the service.
In Rwanda, RSE chief executive Celestin Rwabukumba said the bourse has been offering free data services since inception in 2008, but plans are now underway to introduce a fee for the data.
“We have been doing it free as an incentive to investors, but we plan to get people to pay for it. We have already signed contracts with different companies,” Rwabukumba told
In Tanzania, DSE chief executive Moremi Marwa said that the bourse is already selling its market data. Its key clients include Bloomberg and Thomson Reuters.
In Kenya, the Nairobi Securities Exchange is charging investors for both daily and historical market data, with the overall cost based on the value of the data, amount required and the effort involved in producing it.
Investors are also required to pay a fee to get access to Nse-listed companies' reports.
Last year, the region's capital markets went through a difficult period, with share prices falling as foreign investors sold off their shares.
Global research firm Focuseconomics has warned that emerging and frontier markets are at risk of heightened volatility in their financial and equity markets, as well as sizeable currency depreciation this year.
This is largely due to higher yields in the US, increasing oil prices, and high exposure to foreign debt.
The firm noted that increased oil prices are putting pressure on some oil-importing countries, worsening their current account positions, while the higher yields in the US are likely to cause foreign investors to sell off their stocks in African markets.
The region’s stock exchanges will now be selling market data reports on stocks and bond trading.