The Stock Exchange of Mauritius marked the Go-Live of its new Automated Trading System, Avento  and its state-of- the art online trading app, mySEM on 19th May 2022.

The new multi-asset ATS developed by STT, includes a rich and robust desktop trading front-end for brokers and a high-end mySEM App for investors. This enables SEM to continue on the path of innovation, and move up the value-chain of products and services for its local and international stakeholders

On this occasion, the Honourable Minister Mahen Kumar Seeruttun in his keynote speech stated that “the natural consequences of such innovative development for policy-makers and market players is the contribution of the capital market to our country’s economic development and ultimately to Wealth Creation for our People.”  

He further added that the introduction of this enhanced automated platform will further liberalise and modernise our capital market ecosystem to maintain our country’s edge, our relevance and our competitiveness in the international marketplace.  Indeed, the imperative is for us to remain at par with global best practices and front-line developments in technology and business models.

He stated that “we are re-defining what a Capital Market represents for us by adding a derivatives’ component to the platform and hopefully soon trade in futures and options once the preconditions for a successful derivatives market are met.” 

He also mentioned the use of the image of a four-legged table from Randall Dodd, Director of the Financial Policy Forum and Derivatives Study Centre in Washington DC.

A more complete view of capital markets can be synonymous to a four-legged table made up of:

-A securities market issuing and trading bonds and equity shares;

-A banking industry issuing loans and providing payment and settlement services;

- Insurance and pension funds providing future income and collateral for lending; and

- A Derivatives markets offering better risk management and price discovery.

He further  highlighted that one of the very important components of this system which will allow SEM’s Surveillance Team to pick up in real-time alerts relating to market abuse, manipulative practices and other irregular trading activities. This new functionality will also greatly assist the FSC in its supervisory role.

He added the benefits of using the SEM app which is all about digitalisation but it is also about empowerment of local and international investors, trading is all about getting the Timing Right.  SEM App allows investors to follow the market real-time, order real-time as well as login to CDS accounts and access interactive charting of a company’s shares over 1 year.

Mr Sunil Benimadhu, the Chief Executive of the SEM stated in his speech that with the launch of Avento and mySEM on-line trading app. Avento is a trading platform powered by STT, a global provider of Exchange solutions and financial markets technology.

Mr Benimadhu explained why have the SEM shifted, from SEMATS to embrace Avento and how will Avento add value to SEM’s current and future plans: 

1. First, a generous grant given to SEM by AfDB to fund the implementation phase of the system.
2. Second, our relentless drive to innovate, embrace new state-of-the-art technology so as to better service our stakeholders, investors, issuers, regulators, data vendors, etc.
3. Third, Avento will without any doubt facilitate SEM’s pursuance of its differentiation and internationalisation strategy.

He stated that Avento will give a new impetus to this internationalization strategy on 4 fronts:

Firstly, enhancing SEM’s attractiveness as a listing and trading platform for Exchange Traded Funds (ETF’s).

Secondly, Avento, will set the stage for international brokers to connect to SEM platform as remote members and attract more international order-flows to our market, creating thereby the space for enhanced liquidity.

Third, the SEM has been chosen among seven African Exchanges by the AfDB to be part of an African Exchanges Linkage Project, which will integrate these exchanges through technology with the aims of ensuring better financial integration in Africa and enhancing secondary market liquidity on African Exchanges. Avento will facilitate this integration process for the SEM and create space for more global order flows to converge to SEM’s platform from the other African Exchanges.

Fourth, Avento opens the door for the SEM to enter the derivatives space and plan for future market development of new products, including futures and options on foreign underlyings.