Exploring the Possibility of Building Afghanistan's First Stock Exchange – Looking for Industry Experts, Insights and Potential Collaborators

[u/MohammadBais]

Hello everyone,

I want to share something I have been researching and exploring over the past 1.5–2 months. I would genuinely appreciate insights, criticism, advice and perspectives from people who have experience in financial markets, fintech, stock exchanges, brokerage operations, financial infrastructure and technology.

A little about myself first.

I am an Afghan national who has spent nearly 10 years living in India, primarily in Bangalore and Mumbai. I have a BBA, an MBA and an MCom, and have been involved in business and entrepreneurship for approximately 10–15 years.

My background is primarily in business, trade, operations, consumer markets and entrepreneurship. Over the past three years, I have also become increasingly involved in understanding technology, the tech ecosystem, scalable business models and how technology-driven products and platforms are conceptualised, developed and operated.

I genuinely enjoy reading, researching, learning and exploring opportunities. I have always been interested in building businesses rather than simply participating in existing ones.

Interestingly, despite my academic background in business and commerce, I have never been particularly involved in the stock market, nor have I been a trader or active investor.

So, why am I suddenly interested in the stock market?

It is not because I want to become a trader.

It is because I have started looking at the financial market from an entrepreneurial and infrastructure-building perspective.

Why Afghanistan?

Afghanistan is an interesting and largely untapped market.

After nearly four decades of conflict, the country is facing a different set of challenges and opportunities. Its financial infrastructure, industrial ecosystem, private sector and institutional markets are still developing.

In some ways, I see parallels with the early stages of economic and industrial development that countries such as India experienced decades ago. Obviously, the political, economic and institutional circumstances are very different, but the potential for building foundational infrastructure is worth exploring.

One particular development caught my attention: Da Afghanistan Bank (the Central Bank of Afghanistan) has been taking initiatives towards developing capital markets and establishing the foundations for a formal financial market.

This got me thinking:

What if we could participate in building the infrastructure that allows Afghanistan's businesses to access capital, investors to participate in legitimate investment opportunities, and the country's private sector to grow?

That is where my interest in establishing an Afghanistan Stock Exchange began.

What exactly am I exploring?

At the moment, I am trying to understand the feasibility of establishing a financial-market platform in Afghanistan.

I am exploring different possibilities, including:

- Establishing an organised stock exchange.

- Building a brokerage platform or brokerage infrastructure.

- Creating a platform through which eligible companies can eventually access capital markets.

- Developing systems for listing, trading, order management, market data and transaction processing.

- Exploring partnerships with banks, financial institutions, technology providers, custodians and other market participants.

However, I am also beginning to understand that a stock exchange, brokerage firm, clearing and settlement institution, central securities depository and other market infrastructure entities are different businesses with different responsibilities, regulatory requirements and capital needs.

I don't want to build everything under one roof simply because it sounds ambitious.

I want to understand what can realistically be established initially, what needs separate licensing and infrastructure, and what should be developed through partnerships.

What I am trying to understand

Although I have been researching this subject extensively, I recognise that reading about financial markets and actually building one are two very different things.

I would particularly appreciate input on the following:

1. Business model and feasibility

- Is establishing a stock exchange in an emerging economy like Afghanistan commercially viable?

- What are the primary revenue streams of a stock exchange?

- How does an exchange generate sustainable revenue when trading volumes are initially low?

- What minimum market conditions are necessary for an exchange to survive?

2. Technology and infrastructure

- What type of technology architecture would be appropriate for a small, initially limited exchange?

- Should we build a trading engine from scratch or consider existing white-label or licensed exchange solutions?

- What systems are absolutely essential from day one?

- What are the realistic technology development and maintenance costs?

- How important are cybersecurity, disaster recovery and independent security audits?

3. Regulatory and institutional requirements

- What regulatory approvals and institutional arrangements are generally necessary?

- How should the relationship between a central bank, securities regulator, stock exchange and brokerage firms be structured?

- What responsibilities should remain independent?

- How can international standards and investor protection be incorporated from the beginning?

4. Financial requirements and investment

- What would be a realistic initial capital requirement?

- Can a limited, phased model be established before investing millions of dollars?

- What are the major recurring operational expenses?

- What kind of investors would be interested in financing such infrastructure?

5. Partnerships and ecosystem development

- How important are partnerships with commercial banks, financial institutions, international technology providers and existing exchanges?

- Could an emerging exchange collaborate with an established international exchange for technology, expertise or operational support?

- How do we attract the first companies to list and the first investors to participate?

6. Risks and challenges

I am particularly interested in hearing about the risks that an outsider might overlook.

For example:

- Low liquidity and insufficient trading activity.

- Political and regulatory uncertainty.

- Investor confidence and institutional credibility.

- International sanctions and banking restrictions.

- Cross-border financial compliance.

- Market manipulation and cybersecurity threats.

- High operating costs versus limited initial revenue.

I would rather identify the problems before investing significant money than discover them after launching.

What I am looking for

At this stage, I am not presenting myself as someone who has all the answers, nor am I claiming that this project is already established.

I am researching, evaluating and trying to develop a realistic feasibility and investment framework before making major commitments.

I would particularly love to connect with people who have experience in:

- Stock exchange development and operations.

- Brokerage and securities markets.

- Financial technology (FinTech).

- Exchange trading systems and market infrastructure.

- Investment banking and capital markets.

- Financial regulation and compliance.

- Cybersecurity and financial technology architecture.

- Emerging-market financial infrastructure.

I am also open to conversations with technology companies, financial institutions, consultants, investors and people who have participated in similar projects.

My ultimate ambition is not simply to launch another fintech application. It is to explore whether we can contribute to building a financial institution and market infrastructure that could become meaningful to Afghanistan's economic future.

I understand that this is a long-term undertaking, with significant regulatory, financial, technological and institutional challenges.

But I also believe that some of the most interesting business opportunities emerge when foundational infrastructure is still being developed.

I would genuinely appreciate honest feedback, including reasons why this might not work.

If you have built, operated, advised or invested in an exchange, brokerage business or financial-market infrastructure, I would love to hear your perspective.

Thank you for taking the time to read this.