LEGAL, REGULATORY AND INSTITUTIONAL ASPECTS OF CROSS-BORDER TRADE IN SECURITIES: THE CASE OF EASTERN AND SOUTHERN AFRICA.

Abstract

The thesis examined the legal, regulatory and institutional aspects of developing and promoting a vibrant regional securities market in the Eastern and Southern African Region (COMESA Region) through cross-border trade in securities. The study argues that cross-border trade in securities in the COMESA Region promotes demand and supply of different securities. Using the qualitative approach the thesis evaluated efficacy of the legal, regulatory and institutional aspects of Eastern and Southern African cross border trade in securities. The study revealed that determining the substantive property law, and mutual recognition of listing documents and securities advertisements increase cross-border trade securities in the Common Market of Eastern and Southern Africa. It provides an original contribution to the existing scholarship on cross-border trade in securities. The study further demonstrates that share transfer agents and branch registers of company issuers are likely to increase legal uncertainty and transaction costs for cross-border securities deals. The regional integration of domestic payment systems speed up the settlement of cross-border securities trades, reduces transaction costs and ease the liquidity challenges that are faced by securities markets in the region. The developed model provides an effective legal, regulatory and institutional framework which reflects the peculiar needs of COMESA markets, increases supply and demand for securities, facilitates cross-border disposition of securities at minimum cost, and safeguards the interests of issuers and investors, and is likely to facilitate the development of competitive securities markets in the region.