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BizDay Zimbabwe

ZSE prepares for full automation

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The Zimbabwe Stock Exchange (ZSE) said on Wednesday it is working on systems to interface the automated trading system (ATS) and the Central Securities Depository (CSD) in preparation for full automation of the bourse.
The ZSE has announced plans to fully automate the exchange by year end after it awarded Infotech from Pakistan the tender to install the ATS.

The ATS will allow stockbrokers to trade in the comfort of their offices unlike the current situation where they have to be present at the bourse.

On the other hand, the CSD is a system where investments are kept in electronic form for ease of trading and safe keeping, replacing the currently used paper share certificates.

A local company, Chengetedzai, is managing the CSD.

Currently 18 of the over 60 counters listed on the ZSE have been moved from the old paper system to the CSD, 10 more are due to be added next month and the remainder in December.

The ZSE said interfacing the ATS and CSD was critical in ensuring smooth trade on the bourse.

“With the automation of the trading system at the bourse underway, background work has begun to ensure that there is smooth connectivity between the ZSE Automated Trading System and the Central Depository System housed at Chengetedzai Depository Company,” the ZSE said.

The ZSE said the integration would ensure that securities are kept up to date to protect investors.

“Before any trade is executed at the ATS, the system will validate if the client has enough shares to sell or if the client’s account is funded to execute the trade,” the ZSE said.

“Clients will not be able to sell shares that they do not possess. This updated file will also include data relating to shares that are blocked from trade pending settlement with the counterparty.”

The ZSE said securities updates would initially be done through a manual process and eventually in real time after full automation. — New Ziana.

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