Zimpapers Logo

Happiness Zengeni Business Editor
THE Zimbabwe Stock Exchange has awarded InfoTech Middle East FFZ-LC, an Indian firm the contract to install its automated trading system.  
Bids for the ATS project were received last year from four vendors namely Chartered Systems Integration, InfoTech Middle East FFZ-LC, National Stock Exchange of India and New York Stock Exchange Euronext.

ZSE chief executive Mr Alban Chirume could not be reached for comment, but a well-placed source told The Herald Business that InfoTech won the tender.

“We have gone to Ghana where they have installed a similar system and we are happy,” said the source. “We are now negotiating a contract which should be ready by the end of next month. We are negotiating terms of payments and discussing risk mitigation that must be included in the contract.”

The signing of the contract will pave way for initial work on the installation of the ATS. The installation of the ATS will greatly help the efforts to harness Diaspora funds and increase the market share from the retail segment by enabling mobile and internet-based technologies for transacting.

The ZSE currently carries out a large number of tasks manually using excel and other basic packages. All the requirements will be incorporated in the ATS to eliminate the manual processing and distribution of data.

The automation is, however, dependent on the successful launch of the Central Securities Depository. In a statement early this week, Chengetedzai Depository Company said the system was technically ready, but is awaiting regulatory approval to go live.

Chengetedzai said all participants to the CSD have signed off the User Acceptance Testing and that the Securities and Exchange Commission of Zimbabwe has completed the pre-licensing inspection and given approval to commence the creation of Investor Records in the CSD system.

The Investor Records Creation will commence on January 20, 2014.
The completion of this process will pave way for the de-materialisation of securities subject to further approval by SECz
Meanwhile, sources also say the ZSE recently purchased a property in the northern suburbs where it plans to move the trading floors.

“It is still premature to disclose when are we moving, but we have bought a property,” the source said. “As we are close to finalising the automation of the trading platform, the board is looking at two options of either having the system installed at our present offices or at the new property to avoid costs of relocating the data centre,” said a source.

Currently the exchange is in the Central Business District along Kwame Nkrumah Avenue where it is easily accessible, but at the same time faces higher rentals.

The ZSE, one of the oldest exchanges on the continent is also pursuing other projects which would modernise and make efficient its systems.
The exchange is set for de-mutualisation this year, while at the same time new ZSE Listings Rules are set to be adopted.