The AELP is a joint initiative by the African Securities Exchanges Association (ASEA) and the African Development Bank to unlock Pan-African investment flows, promote innovations that support diversification for investors, and address depth and liquidity in the markets. It is funded by the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund through the African Development Bank.
Exchanges participating in the AELP are:
- Bourse Régionale des Valeurs Mobilières (BRVM, integrating eight West African markets)
- Casablanca Stock Exchange
- The Egyptian Exchange
- Johannesburg Stock Exchange
- Nairobi Securities Exchange
- Nigerian Exchange
- Stock Exchange of Mauritius.
The AELP is coordinated by a Project Management Office, which is part of the African Securities Exchanges Association (ASEA), the premier association of African Exchanges, and based in Nairobi, Kenya.
The procurement for an order-routing technology platform called the “AELP Link” was launched at the end of April 2020. The AELP Link will enable a stockbroker on one exchange (“originating exchange”) to channel a client’s buy or sell order to a stockbroker on a second exchange where a target security is listed (“host exchange”). The system will be designed to handle orders on all African listed securities, as permitted in those markets.
Trade execution will continue to be handled according to the law, regulation and practice of the host exchange, with the executing broker responsible for compliance (“sponsoring broker”).
Clearing and settlement will also follow the host market practice. Funds to settle the transactions will be transferred separately from the order-routing system by the banks for stockbrokers or by clients’ custodians or sub-custodians. Securities purchased through the AELP Link, when the JSE is the host exchange, will be held in Strate and will follow own name account or nominee account practice.
The implementation of the AELP Link should not require any change to existing JSE rules and directives.
Supporting free movement of investment within Africa
Other AELP initiatives include making it easier for investors to access research into other AELP markets and increasing knowledge of the African listed securities asset class, including companies, bonds, ETFs and other securities listed on the participating Exchanges.
Visit African Exchanges Linkage Project website