Online Reporter
Business Reporter
THE Financial Securities Exchange FINSEC has been authorised to operate and administer the National Treasury Bills (TBs) and Bonds Registration and Transaction Coding Framework, following a binding regulatory directive from the Securities and Exchange Commission of Zimbabwe (SECZIM).
The move, confirmed by FINSEC in a market notice this week, has been formally approved for operationalisation by the Ministry of Finance, Economic Development and Investment Promotion.
It will enforce strict regulatory tracking across the country’s debt market
Under the new mandate, FINSEC will manage the registration, transaction coding, validation, and registry functions for all secondary market trades involving the TBs and Government bonds.
“The National Treasury Bills and Bonds Registration and Transaction Coding Framework has received the necessary regulatory and Government support for implementation,” FINSEC said.
From the perspective of market regulators, the directive introduces uncompromising transparency.
SECZIM’s framework mandates that every secondary market transaction involving Government debt must be registered and assigned a unique Transaction Code through FINSEC’s framework—regardless of how or where the trade was executed, negotiated, or settled.
Under the SECZIM directive, all licensed capital market participants—including stockbrokers, investment managers and financial institutions—are required to trade strictly as principals, assuming all associated risks and obligations.
Certain complex structures, including transfer assignments, repurchase and reverse repurchase agreements (repos), collateral arrangements, structured financing and changes in beneficial ownership, will now require SECZIM’s prior approval before registration.
To enforce compliance, market entities must submit complete trade details to the system, including security identification, transaction dates, pricing, maturity, discount rates or yields and counterparty identities.
SECZIM retains the power to conduct inspections, demand compliance reports, and apply regulatory sanctions against non-compliant entities.
FINSEC highlighted that the primary objective of the framework is structural.
“Its purpose is to strengthen secondary market efficiency, security and transparency,” it said.
