In the 19th century Baron von Reuter, the German founder of what is known today as Reuters Holding private limited company used carrier regions to fly stock and market quotations between Brussels and Aachen in Germany. Since then the capital markets have seen revolutionary changes. Today, technology offers investors, issuers and market participants enhanced efficiency.
As computing and mobile technology has become increasingly more powerful and comparatively more affordable, technology has transformed communication in the capital market. Communication technologies have aided in making the capital markets more efficient by providing all participants with faster, more effective means of exchanging information. These recent advances in information and communications technology are resulting in markets that are more efficient and transparent and better able to handle increased trading volume. In these respects, the impact of new technologies upon the capital markets as a whole has been positive.
Technology has helped to level the playing field between large and small companies by reducing disparities between large and small investors’ ability to access information and the capital market hence helping companies to raise capital more effectively by giving them better access to potential investors; and giving companies new avenues to communicate with shareholders. Similarly, it enhances the ability of investors and to make informed investment and voting decisions by giving investors information faster in electronic format, as databases can be searched and financial information be analysed more readily.
Investors on internet enabled devices such as smartphones and tablets can access the C-TRADE mobile App for the trading of securities. This is highly efficient since investors can manage their portfolios at any time with easy operational and navigational tools. Every second is valuable in certain market conditions thus, the mobile app helps critically in allowing investors to be in touch with their investments at the click of a button. For investors interested in rich stock market information, analytics, trends and share price movements, the web-based solution, C-TRADE online provides an advanced interface.
The C-TRADE mobile USSD application can be utilised by all mobile network subscribers by simply dialing a single short code *727# across all networks. This is a very significant development that enables every citizen access through a platform that does not require the internet. Further, resonates well with the government and capital markets regulator’s drive to develop and deepen the market by introducing financial products that target all sections of the citizenry no matter their income levels and geographic spread.
In the decade ahead, the continued growth of technology presents even greater opportunities for expansion and innovation in capital markets especially as investors become more wired and more comfortable with communication technologies the effects will be felt throughout the capital markets.
From July 16, when C-Trade was launched, close to 2 100 retail investors have created trading accounts. Of the total number of registrants, 78 percent are first time investors. These figures show a significant uptake comparable to the approximately 7 500 active investors accrued since dollarisation. Such an exponential increase signals a market poised for growth.
