Staff Writer
The capital markets regulator has approved rules which will see the Zimbabwe Stock Exchange (ZSE) receive applications for Exchange Trade Products and prospective market makers.
In a statement Thursday ZSE chief executive officer Justin Bgoni said the approval was sought and granted by the Securities and Exchange Commission of Zimbabwe in terms of section 65 (3) of the Securities and Exchange Act [Chapter 24:25].
“The Zimbabwe Stock Exchange Limited (“ZSE”) wishes to advise stakeholders on the approval of the Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) (Amendment) rules, 2019 and the Securities and Exchange (Zimbabwe Stock Exchange Market Making) rules 2019,” Bgoni said.
He said the listing amendment rules incorporates Exchange Traded Products (ETPs) which allows the bourse to receive applications for the listing of Exchange Traded Funds and Exchange Traded Notes. The ZSE is also now able to process applications for prospective market makers, Bgoni said.
ETPs track an underlying security, commodity, index, or financial instrument.
An Exchange Traded Fund is a fully funded (unleveraged) security listed on the ZSE which tracks the performance of a specified security or other assets, which include, but are not limited to, indices, commodities, currencies or any other asset acceptable to the ZSE.
An Exchange Traded Note is a listed, senior, non-bespoke, unsubordinated, uncollateralised debt security which represents a contractual obligation made by an issuer to pay the holder a return which is linked to the performance of underlying securities or benchmarks, such as the performance of one or more shares or bonds, an index, an exchange rate or a commodity and are backed by the creditworthiness of the issuer.
A market maker is an entity that quotes bids and offers prices continuously for Designated Securities that it holds in inventory and is prepared and able to buy or sell these securities at any time on its own account as per the Market Making Agreement and is registered by ZSE.
