ZSE to begin automated trading next year

HARARE - Zimbabwe Stock Exchange (ZSE)'s automation will begin next year following the appointment of a Mauritius-based consultant.

Alban Chirume, the bourse's chief executive, on Thursday said that the automated trading system – expected to go live in the first quarter of 2014 — is poised to treble the ZSE’s annual turnover to over $1 billion from just below half a billion.

“Central Depository and Settlement Company of Mauritius Limited (CDSM) has a visible footprint in the automation projects carried out elsewhere in Africa and we are delighted that our own initiative has attracted their interest,” he said.

The former Securities Commission of Zimbabwe boss noted that the consultant is expected to review business processes of the ZSE, prepare a request for proposals, advise the local bourse on the process of vendor selection and prepare the system for implementation.

“The automated trading system is very significant to us in terms of the expected impact and also very delicate as it involves all stakeholders and how they conduct their business,” he said.

The system will replace the current manual system where brokers place orders on bids on a board during trading sessions on the floor for allotment to be done.

It is also expected to extend the trading hours on ZSE and that dealers can trade from the comfort of their offices.

“Brokers will no longer come for call over sessions. Unlike in Zambia where the system didn’t impact on volumes, our market is different because it is more aggressive and spread across. This model will see our volumes going three times up. We are very confident,” Chirume said.

 

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