Abstract:
The purpose of the study is to determine the effect of adopting progressive technology at the Nairobi Securities Exchange. The specific objectives are: First, to assess the systems currently in place at the NSE, Second, to determine the factors limiting technological advancements at the NSE, and finally to analyse the technology being used in the leading securities exchanges worldwide in order to supplement the research findings.
This study is guided by the Explanatory research design. The relevant population strata for the study are the brokerage firms and Investment banks in the Nairobi City County as well as Managers at the NSE. This population of study was selected after a thorough analysis of the data collection instrument. The Simple Random technique was used to select a sample of study. Both Primary and Secondary data was used during the study. Close ended questionnaires and face to face interviews were used in the facilitation of collection of Primary data, while Secondary data were collected from journal articles on the NSE.
The findings of this study show that, systems at the NSE need to be progressively improved in tandem with technological advancements that are taking place at the world leading securities exchange like the New York Stock exchange or the London Stock exchange among others.
The study concludes that the average numbers of transactions that are processed daily at the NSE are dependent on the ease of access to technology systems. This implies that for the number of transactions to increase the access to technology systems (improved by technological advancements) has to be made better.
The study recommends that progressive technology of trading systems have to be aggressively altered and improved to be able to accommodate increasing numbers and changing needs of traders at the NSE. Furthermore, to improve efficiency and effectiveness of the NSE, aggressive training to the general public is essential to inform them of the progressive technologies being introduced at the NSE.
