ZSE begins CSD operations
BUSINESS REPORTER
The Zimbabwe Stock Exchange (ZSE) commenced its central securities depository (CSD) operations Friday as it moves to improve operational efficiencies, reduce costs for participants and make it easier for retail investors to access the market.
A CSD is a facility that holds and administers securities as well as enabling transactions to be processed by means of book entry.
In a statement, ZSE chief executive officer Justin Bgoni said the commencement of operations came after the bourse was granted approval by the Securities and Exchange Commission of Zimbabwe to run the “CSD operations with effect from 1 October 2021”.
“Stakeholders are advised that the launch of the ZSE CSD will not affect their trading or custodial relationships,” he said.
In July, Bgoni said the CSD would facilitate the introduction of new products.
He said it was an international best practice that an Exchange also owns its depository.
This becomes the second CSD in the market; seven years after Chengetedzai Depository Company (CDC) went live.
CDC says it has transformed the capital market to an “electronic-based system” from a manual or semi-automated one and is ready to help in these “trying times”.
The coming on board of CDC resulted in the reduction in the settlement timeframe to T+3 (transaction plus 3 days) from T+7(transaction plus 7 days).
