17 January 2018
   
ED takes over Bob's globe-trotting too?
$150m waste: Vic Falls airport shocker
Grace, Bob sanctions review in February
Africa handled Mugabe ouster: Namibia Pres
SA: Student fails; kills Zim teacher
Zim family still at Thailand airport
Mnangagwa off to Zambia Friday
Special corruption courts soon: CJ Malaba
MORE NEWS
SMM saga: Letter to RBZ chairperson
Minister sells post-Bob Zimbabwe in Spain
MORE BUSINESS
Racism: Malema party storms H&M stores
Donel Mangena rocks The Voice UK
MORE SHOWBIZ
Mourinho says 'relaxed' about Sanchez
Bangladesh easily beat Zimbabwe
MORE SPORTS
'Shit-hole': Just Take moral high ground
ZHUWAO BRIEF: ED-iots and election delay
MORE OPINION
 
Trump rage ignores truth: A response
ED govt legitimacy & the church’s role
MORE COLUMNISTS
 
 
Zimbabwe’s first central depository firm launches


Seeking to replace the open cry system ... Stock exchange CEO Alban Chirume

08/09/2014 00:00:00
by The Source
 
A vital step in building the infrastructure ... Tafadzwa Chinhamo
 
RELATED STORIES

ZIMBABWE’S first ever central securities depository firm, Chengetedzai Depository Company on Monday commenced the migration of paper-based titles into new electronic shares with three counters going live.

Cottco, CBZ and FBC are now live, with 15 more counters scheduled to be included within a month while the remainder will be integrated by end of November.

Addressing journalists at the launch, Chengetedzai chief executive, Campbell Musiwa said the Central Securities Depository (CSD) system would offer safer storage of securities and facilitate their transfer from one party to the other through an automated book entry.

The system, would also allow for faster electronic clearance and settlement of trades done on the Zimbabwe Stock Exchange (ZSE).

“The key advantages of bringing a CSD to any country is the issue of efficiencies. The settlement timeframes is going to be reduced,” he said, adding that the country was taking more than seven days to process transactions which would soon be reduced to four or less.

“We have also set a target, the Securities and Exchange Commission has mandated us to bring the settlement timeframe to (trading plus three days) by June of next year,” he said.

The CSD will also facilitate the trading of Treasury Bills, bonds, repos and commercial bonds.

Musiwa said foreign investors were interested in investing in a country with a CSD due to its efficiency, citing the American pension funds that were not allowed to invest in a country without it.

At least 60 to 70 percent of the country’s trades on the ZSE are by foreigners.

Securities and Exchange Commission of Zimbabwe (SECZ) chief executive, Tafadzwa Chinamo said the new system was a vital step in building the infrastructure that was lacking in the country.

“We are the only country right now that is on seven-day settlement but possibly the only one also doing an open outcry system where everything is manual and that frightens a lot of people,” he said.

As part of the efforts to modernise trading on the ZSE, he said the CSD would interface with the Automated Trading System (ATS) to be launched by end of this year.

“It opens endless possibilities on the market and because of this we can also dream about transacting via the cellphones,” Chinamo said.



Advertisement

He said the system guaranteed security, prevented abuse of share certificates and cut on time spent with some transactions taking three weeks to process.

ZSE chief executive, Alban Chirume said the CSD would complement the new ATS which seeks to replace the open cry system.

“In doing that we need to settle both the securities and also the cash and that is where we interface with Chengetedzai,” he said.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker