investment development communications mobilizing global capital flows to african exchanges prepared...
Post on 11-Jan-2016
230 Views
Preview:
TRANSCRIPT
investmentdevelopment
communications
Mobilizing Global Capital Flows to African Exchanges
Prepared for the ASEA Conference 2007 30 October 2007
About us
• Africa investor is specialist investment research and communications firm providing services from Lagos, Johannesburg, Cairo and London
• We were established to shed light on economic opportunities in Africa to global investors
• We are advised by a board of investment experts and work at the intersect of business, government, media and civil society
• We publish Africa investor magazine, Ai.com and provide research and investor relations/ financial PR to blue chip African clients and global investors
Challenges expressed by global investors
• Access to information– Bloomberg and Reuters cover less than 50
per cent of the market – Listed companies need to improve
frequency and quality of reporting– African Stock Exchanges need to raise their
profile– The quality, quantity and availability of
research and data needs to be addressed– Liquidity and settlement remains an issue“Information does not come to you –you need to go out and
get it” John Niepold, Emerging Markets LLC
What we are doing –Africa investor Index Series
“Ai’s recently launched benchmark can help attract attention to African equities” Shilpa Patel, IFC
• Ai 100– informational: what is happening
across a broad range of markets
• Ai40– Investable: includes companies we
consider investable to the international portfolio investor by virtue of their size and liquidity
Valuation: weighting factors based on market capitalisation
CountryMarket cap total (US$m)
Weight by market cap
Weight in index
South Africa 327,382 73.1% 40.0%Morocco 38,614 8.6% 13.0%Egypt 41,344 9.2% 15.8%Nigeria 17,139 3.8% 10.0%Brvm 3,100 0.7% 1.7%Kenya 9,478 2.1% 7.0%Zimbabwe 1,071 0.2% 2.2%Botswana 2,728 0.6% 3.7%Mauritius 2,049 0.5% 1.0%Tunisia 2,452 0.6% 2.5%Tanzania 472 0.1% 0.5%Namibia 272 0.1% 0.5%Ghana 930 0.2% 0.9%Zambia 551 0.1% 1.1%Swaziland 135 0.0% 0.2%Malawi 248 0.1% 0.2%
Ai 40 (5 Jan 07) Ai 100 (5 Jan 07)
How it works1. Companies are ranked in order of
market capitalisation
2. Weighting based on position in ranking
3. Weighting Ranges:
0.5 to 7% (Ai 40)
0.2 to 5% (Ai 100)
CountryNumber of companies
Market cap total (US$m)
Weight by market cap
Weight in index
South Africa 7 168,894 73.4% 35.5%
Egypt 7 27,009 9.6% 19.5%Morocco 7 22,174 10.6% 19.5%Nigeria 7 8,094 3.7% 12.5%Kenya 7 4,951 1.6% 7.0%Mauritius 2 798 0.2% 1.0%Zimbabwe 1 517 0.1% 0.5%Tunisia 2 464 0.3% 2.0%
Ai newswire – support to corporate reporting
• A web based news distribution service assisting African companies to secure international media coverage
• Reaches analysts, fund managers, the news media, the investment community, government decision-makers, and the general public.
Distribution
• Comtex• Factiva • FT.com • LexisNexis• MarketWatch • NewsTex • ProQuest• Thomson
Gale • Thomson
West • TrackData
Ai index Awards – supported by ASEA
8th June 2007, London Stock Exchange
• Categories– Most Innovative African Stock Exchange– Best Performing Ai 100 company– Best Performing Ai 40 company– Best Africa Research Team– Best Africa Fund Manager– Best African IPO– Best Africa Investment Bank of the Year– Best Broker of the Year (new)– Most Innovative Regulator of the Year (new)
Ai Index Series Conference & Awards• The 2008 ceremony will take place
at the NYSE September 15• An opportunity to showcase AfricaPLC to
global investors and the international financial media
• NYSE have undertaken to deliver Wall Street at its most senior.
1. Support Exchanges in their move towards electronic trading
2. Support brokers connect to Exchanges and the global investing community
MPN Highlight
Delivering Global Liquidity
A NEW PARTNERSHIP TO DELIVER GLOBAL LIQUIDITY TO AFRICA
SIGNED AT THE JSE 25 OCTOBER 2007
MPN Highlight
Africa investor Marco Polo Network
• The execution platform to Global Emerging Markets.
• Speed, security & competitive pricing.
• Marco Polo Network (“MPN”) currently has the most extensive global electronic footprint in the world.
• MPN allows transparency and low transaction costs.
• Single point of connection.
• Complete audit trail of the transactions.
MPN Highlight
Marco Polo Network
Client
Neutral, Global Electronic Connectivity and Order Routing Services
Leader in Global Emerging Markets (“GEM”) Automated Trading
Asset Class Supported:- Equities - Traded Derivatives- Foreign Exchange
Currently Offers Electronic Connections to Leading Brokers in over 40 Developed and Emerging Markets
24 X 6 support services
ASIAAMERICAS AFRICA
MPN Overview
Broker
Exchange
Broker
Exchange
Broker
Exchange
Marco Polo NetworkTradeTravellerTM
MPN – Network & Services
TradeTravellerTM
Service Desk•24 X 6 staffing•Exception management tools•Global trading experience•Static data support•Technical issue resolution•Connectivity monitoring•Proactive client reporting
Order Management •Market rules validation•Content enrichment•Market hours store and forward•Execution validation•Exceptions Management•Order Capture•Counterparty validation•Order Validation•FIX version normalization•FIX version translation
Local Broker Execution
TradeTravellerTM
FIX
FIX
VPN / Radianz, etc
VPN / Radianz, etc
Client
MPN – Value Added
Service Highlights
FIX Translation
TradeTraveller™ supports multiple FIX versions and the differences between them. Client can continue to use their current FIX implementation and TradeTraveller™ will translate message formats and structures as required to the preferences of the local broker.
FIX Certification
Client will test once with TradeTraveller™ to gain access to all brokers; subsequent changes by a broker to its OMS or its FIX interface will not impact Client.
Reference Data
TradeTraveller™ maintains a proprietary reference database including message preferences of each party, details of each market and the securities within them. This minimizes the changes required by each party in identifying securities using local conventions.
Secure Messaging
Marco Polo is a member of the Radianz™ network. Marco Polo also offers its own secure low cost VPN connectivity to local brokers. The Marco Polo VPN service which is monitored 24/6 and maintained remotely, provides significantly lower communication costs in GEM trading.
Support Desk
TradeTraveller™ trade support desk provides 24/6 monitoring of all trade flows. The trade support desk proactively communicates to traders and brokers any delays or exceptions that cannot be resolved through electronic messaging. The TradeTraveller™ service desk is managed out of New York and Bangalore.
Practical and Cost Effective
TradeTraveller™ does not require the installation of any additional software within the Client environment thereby eliminating Client support costs and software maintenance charges.
MPN – Trading/Execution Options
Client
Cash Equities DMA Program Trading
Local Emerging Markets
ELECTRONIC ACCESSELECTRONIC ACCESS
•Execution instructions•Speed•Audit trails•Fill information
•Speed•No touch•“Low touch”*
* “Low Touch” refers to situations where local regulations require brokers to “see and release” trades.
MPN Connectivity Supports a Wide Range of Trading/Execution Options Including Direct Market Access as well as “Managed Flows”
MPN – Connection Ease
Ease of ConnectivityChange Required
None Minimal
Current Technology Infrastructure
Business Practices & Procedures
Existing Broker Network
Implementation Resources
Implementation Costs
Resources Required to Implement New Clients
1 CONNECTION = GLOBAL CAPITAL FLOWS
THANK YOU FOR YOUR ATTENTION
HUBERT DANSO & PETER JARDINE
MPN Highlight
Africa investor Marco Polo Network
top related