ALTX Asked To Stop Operations in Uganda

ALTX East African Limited, an alternative securities exchange, has had its license cancelled by the Capital Markets Authority (CMA). In a notice published in the Uganda gazette this week, the CMA says the company has three months to wind up its business. 

ALTX was an alternative to the main Uganda Securities Exchange (USE) where shares of companies were to be traded online.  It was supposed to also facilitate trading for people in Uganda and outside interested in treasury bills and bonds secondary market. 

Also, companies could choose to list on its platform and have their shares traded there. Five years after it was granted license, no company had been listed. 

Charles Nsamba, the spokesperson of Capital Markets Authority, said the decision was taken by the board and it was about failure to comply with available regulations and governance deficiencies. 

//Cue in: “The approval was cancelled...

Cue out: ...winding up the business.”//

The company was being run by Joseph Kitamirike, the former CEO of the main USE. Nsamba said they can appeal the decision in high court. The closure of ALTX shows that Uganda’s capital markets are still struggling to grow and attract many players. 

The firm was expected to increase on the speed of clearing transactions. ALTX was targeting to operate at the speeds of T+1, which means that for most stock trades, settlement would occur one business day after buying. The Uganda Securities Exchange on average takes five days to complete a transaction.