SECZ automates trading surveillance

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TAURAI MANGUDHLA

 A college student’s innovations have changed the face of market monitoring trades at the country’s capital markets regulator, the Securities and Exchange Commission of Zimbabwe (SECZ) as the commission migrates towards automation.

 Harare Institute of Technology student Takawira Bote engineered the new system which at the click of a button can provide vital information on trades. Before this development, analysts would take up to two hours to compute data at the end of trading but now this can be done within five minutes. 

 The process involves data deciphering, organising data from the Zimbabwe Stock Exchange (ZSE), Financial Securities Exchange (Private) Limited (FINSEC) and Chengetedzai Depository Company (CDC) into information.

 Sec CEO Tafadzwa Chinamo said the system has been operational for three months and has managed to improve efficiencies.

“It was more of a time factor. To get that result we could go through hundreds of pages because the information was available on spread sheets so what the system does is that it sort of scans and collects relevant data and converts it to information” Chinamo said in a telephone interview.

“What would take three hours a day to produce now only takes two minutes,” added Chinamo.

 Bote said the system compiles all the trades, that is buy and sell deals, that took place within the day. This includes indications that a settlement is in order, with each buy deal having a corresponding sell deal, each trade must show the buying and selling broker or that it was a book over.

The information should include the volumes shares and their value.

 The system gives focus is given to activity summary, where statics such as market capitalisation, indices, turnover, volume and number of trades are given.

Top five performers by value, top five movers and the top five shakers. There is also top five analysis envelop details of investor names both buying and selling, the broker responsible for the trades, the consignment of the trade both in volume and value are also included.

 Suspicious trades in terms of provisions of the act are automatically flagged, the innovator said. Using selected algorithms, the system is able to flag some specific trades as suspicious within seconds as soon as the report is done.

The student developed a system to automate this process and at the press of a button, all the trades pertaining to a counter is put in the table. All the trade details from the smallest to the largest transactions on a specific flagged trade is collected and displayed at the click of a button.

In cases where suspicion is not on a counter, but instead an investor, an investor analysis is done.

 A data analysis tool for CSD was also developed.

For his efforts, Bote won first prize in the inaugural internship innovation challenge, which SEC launched last week.