Online Reporter
Business Reporter
THE Zimbabwe Stock Exchange Holdings Limited (ZSE) says it has integrated its systems with the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network, marking a key step in the bourse’s ongoing digital transformation journey.
According to ZSE, the integration will directly benefit local and foreign investors by enhancing the safety and speed in the domestic capital markets, while also strengthening the exchange’s operational efficiency.
SWIFT network is a globally recognised standard for secure messaging.
The integration enables ZSE and its subsidiaries to securely and efficiently exchange financial messages with local and international institutions, such as custodians, settlement banks, brokers and depositories.
Following the upgrade, ZSE and its subsidiaries have been assigned unique identifiers on the SWIFT network to enable secure and efficient transactions.
ZSE Holdings will now assume the business identifier Code (BIC) XZIMZWHA, while the ZSE Depository will use XZIMZWHAZSD.
Another ZSE unit, Victoria Falls Exchange (VFEX), will use the new BIC, XZIMZWHAVFX and VFEX Depository assumes the new BIC XZIMZWHAVFD.
Connecting to the SWIFT network brings numerous benefits to the market, including faster and more secure settlement of trades, which improves overall market efficiency.
The connection to the SWIFT network will also improve connectivity to global financial players, facilitate smoother interactions and transactions with international financial institutions.
Furthermore, the standardised messaging used in the SWIFT network will reduce operational risk, while the standardised SWIFT system will allow the market to minimise errors and discrepancies, resulting in more reliable transactions.
In a statement, ZSE chief executive officer Mr Justine Bgoni said the connection to the SWIFT network would increase transparency and compliance with international best practices.
He also said SWIFT would foster trust and credibility in the market, locally and globally.
“ZSE Holdings successfully integrated with the SWIFT network, marking a significant milestone in our ongoing digital transformation.
“The connection to the SWIFT network unlocks a range of benefits for the market, which include faster and more secure settlement of trades, improved connectivity with global financial players, reduced operational risk through standardised messaging, increased transparency and compliance in line with international best practices,” said Mr Bgoni.
Mr Bgoni pointed out that the SWIFT system would enable faster trade confirmations, streamlined post-trade processing, and improved risk management.
The rapid exchange of trade confirmations on the SWIFT system reduces the time it takes to confirm trades, minimising disputes.
Additionally, SWIFT messages facilitate the exchange of information needed for settlement, reconciliation and reporting, thereby streamlining post-trade processes.
The use of Unique Transaction Identifiers (UTIs) under the global messaging system also minimises settlement failures, a significant cost for the industry.
The use of UTIs in Swift Securities View provides end-to-end visibility of the settlement flow, enabling all parties to track transactions and identify potential issues early.
This proactive approach helps prevent settlement failures and reduces operational risk associated with securities transactions.
SWIFT also improves market connectivity and accessibility by providing a network for various market participants to connect and exchange information.
This facilitates international trading and connects stock exchanges across different regions.
