85pc stock counters on CSD

ABOUT 85 percent of active counters on the Zimbabwe Stock Exchange are now linked to the Central Securities Depository as the local bourse inches closer to full automation.

The CSD system maintains securities in electronic format for ease of trading and safe-keeping for investors.

ZSE chief executive Mr Alban Chirume told The Sunday Mail Business that the remaining counters were at different stages of completing the process, without giving specific timelines on the completion of the project. The Securities and Exchange Act requires all securities exchanges to automate trading systems.

Last year, Chengetedzai Depository Company, who are managing the CSD, started the migration of securities on the local bourse from a paper-based system to an electronic format.

Though the process was supposed to be completed before the end of last year the deadline was missed.

“There are concerted efforts between the ZSE and (Chengetedzai) to work towards the successful on-boarding of remaining counters. The remaining counters still to on-board are at various stages of doing so. On boarding is important to the ZSE as much as it is to (Chengetedzai) as it is important towards the seamless implementation of the Automated Teller System,” said Mr Chirume last week.

Mr Chirume added that the ZSE has in the last few months been working on the infrastructure and the integration of the ATS and CSD.

Currently, engineers from InfoTech are finalising installation of a data centre, while the local bourse is also moving towards user training, user acceptance testing and dress rehearsal, which are all phases for competition of the project.

“Due to the magnitude of the project, the ZSE has in conjunction with key stakeholders been carefully working on steps necessary which will result in elimination of the open outcry call over trading system in the next few weeks,” said Mr Chirume.

He added: “The ZSE acknowledges the critical importance of stakeholder involvement in the implementation of this solution hence a dedicated team has been put in place to communicate with stakeholders and agree on various parameters related to test scripts, type and timing of training and other issues.”

No comment could be obtained from Chengetedzai by time of going to print as its chief executive, Mr Campbell Musiwa, was out of the country.