Trading in shares made simpler
By Sobhanund Seeparsad
Published on 11th April, 2008
Turnaround trading starts on the Stock Exchange of Mauritius (SEM) from today Friday April 11. This will enable an investor to buy and sell shares within the same trading session and to take advantage of intra-day price movements. This type of trading exists in many developed markets as well as in some emerging markets.
SEM all set to improve liquidity
SEM investors can now buy and sell their securities even before the settlement day and hope for higher returns on their investments. Until now, turnaround trading was not allowed on the SEM. Securities purchased on a trading day could only be sold after settlement three business days later. This restriction affected liquidity on the market.
“Turnaround trading involves the selling of securities that have been purchased earlier during a trading session or during previous trading sessions and that have not yet been settled to take advantage of an upward movement in prices,” Vipin Mahabirsingh, Managing Director, Central Depository & Settlement Co. Ltd.(CDS), had assured News On Sunday some time back. The measure would also reduce the risk of trade failure , he had assured.
The decision of the CDS and the SEM to implement turnaround trading and securities lending, it seems, aims at further developing the local securities market in line with best international practice.
The Financial Services Commission (FSC) has approved the implementation of turnaround trading and securities lending on the market.
This type of trading is allowed in many developed and emerging markets like Argentina, Australia, Bahrain, Brazil, Egypt, Hong Kong, Indonesia, Japan, Jordan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Sri Lanka, Thailand, and Turkey, among others.
“Turnaround trading involves the selling of securities that have been purchased earlier during a trading session or during previous trading sessions and that have not yet been settled to take advantage of an upward movement in prices,” Vipin Mahabirsingh, Managing Director, Central Depository & Settlement Co. Ltd.(CDS), had assured News On Sunday some time back. The measure would also reduce the risk of trade failure , he had assured.
The decision of the CDS and the SEM to implement turnaround trading and securities lending, it seems, aims at further developing the local securities market in line with best international practice.
The Financial Services Commission (FSC) has approved the implementation of turnaround trading and securities lending on the market.
This type of trading is allowed in many developed and emerging markets like Argentina, Australia, Bahrain, Brazil, Egypt, Hong Kong, Indonesia, Japan, Jordan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Sri Lanka, Thailand, and Turkey, among others.