Money & Markets

ZSE automation gathers pace

The country’s Central Securities Depository firm, Chengetedzai Depository Company yesterday said companies listed on the Zimbabwe Stock Exchange that are not yet on the platform will be boarded by the beginning of March this year.

The company said the remaining 20 listed companies will move to the new platform in March this year paving way for the automation of the local bourse.

“Chengetedzai Depository Company would like to advise the capital market that the remaining issuers (listed companies on the Zimbabwe Stock Exchange) who are not on the CSD will be boarded on March 2 2015,” said the company.

CDC went on to say, “Most listed entities that had missed the December 2014 deadline have since complied with the CSD boarding requirements. The remaining issuers are being engaged to ensure that the necessary resolutions are in place before on boarding.”

The CSD system maintains securities in electronic format in investors’ accounts, allowing their transfer from one party to the other through an automated book entry.


It is operating under a custodian model as opposed to the retail model where investors have a direct interface with brokers.

Under this model, investors will have a choice of either going directly through a custodian for the purchase of shares through a broker or through Chengetedzai.

Last year, ZSE signed a contract for the supply and installation of the Capizar Automated Trading System by Infotech Middle East FZ LLC.

However Chengetedzai’s failure to complete the migration of shares delayed the process to link the ATS to the CSD, which was earmarked for completion by February this year.

At the moment 41 out of the 61 counters trading on the ZSE are on the new settlement platform since CDC commenced the migration in September last year but missed the December deadline to complete the process.

According to the company the dematerialisation of the remaining counters will commence on February 16, a trades involving such counters will continue in physical form until February 27.

With between 60 and 70 percent of the trades on the ZSE being by foreigners, the CSD is seen as crucial to attracting more investment to listed companies.