ZSE interlink project put on hold

over the phone as a result of lack of interconnectivity.
It is believed that the interconnectivity of stock exchanges will foster and increase trade within the region as stockbrokers will be able to secure information regarding trading through the Internet.
In an interview, the Zimbabwe Stock Exchange chief executive Mr Emmanuel Munyukwi said the JSE was expected to assist in the implementation of the project that would see the bourses sharing information through the Internet.
“The JSE is changing its platforms where they are looking at whether there could be a way to assist the implementation of the project. In the next couple of days, I will have to check with JSE to see how far they have gone in changing their platforms.
“Most of the stock exchanges are now computerised but technology is ever changing and it is critical for us to move in line with technological developments,” he said.
A few years ago, stakeholders from Sadc agreed to work together in implementing the Hub and Spoke project that facilitates the interconnectivity of the bourses.
Mr Munyukwi said while the project was feasible, it had also been noted that financial resources could delay its implementation.
“We need $2 million to implement the project but funding is also a challenge,” he said.
Officials from the regional stock exchanges recently held discussions aimed at devising strategies that would see the programme being implemented.
Mr Munyukwi said efforts to improve the interlink of regional bourses was coming at a time when the ZSE was undergoing computerisation to modernise the stock exchange through the installation of an electronic system known as the Central Securities Depository.
The ZSE operates a manual settlement system.
The manual settlement system has been described as outdated and ineffective considering that under this mechanism, share certificates are kept in huge vaults and are prone to damage.
The manual system also becomes overwhelmed when trading is high on the stock market.
A number of countries on the continent including South Africa, Kenya, and Egypt run their stock markets through electronic settlement system.