Zimpapers Logo

Oliver Kazunga Acting Business Editor
More than 2,000 transactions valued at $82 million have been settled at the Zimbabwe Stock Exchange since implementation of   the Central Securities Depository (CSD) last August.Work to install the CSD and link it with the Automated Trading System (ATS) on the local bourse was being done to enable the interaction of the two platforms as well as to curb the selling of non-existent and blocked shares.

The CSD would also offer a safer storage of securities and facilitate their transfer from one party to the other via an electronic entry.

The CSD was being implemented by Chengetedzai Depository Company.

Responding to written questions from Business Chronicle last week, Chengetedzai Depository Company chief executive officer Campbell Musiwa said they had so far processed 13,368 share deposit transactions taking on board 43 of the 61 listed counters on the stock exchange.

“To date, we’ve taken on board 43 of the 61 active counters on the Zimbabwe Stock Exchange (ZSE), processed 13,368 share deposit transactions, opened 1,606 CSD accounts, and settled 2,058  trades transactions valued at $82 million,” he said.

He said they were working with the ZSE to integrate the CSD platform and Automated Trading System to allow for complete automation of trading and settlement.

“The remaining 19 counters have been given a deadline extension within which they should comply with CSD requirements for on boarding,” said Musiwa.

“The CSD was implemented last year in August to cater for ZSE shares. The next phase would be onto board fixed income securities such as corporate bonds, and is being implemented this year.”

The CSD platform was supposed to be up and running before the end of 2013.

Asked why the project missed the 2013 deadline, Musiwa said: “We were given the Registration Certificate to operationalise the CSD in May 2014 and the CSD fees were announced in July 2014.

“After clearing these two milestones, we carried out a market simulation of the CSD to prepare the market players for two months. Upon successful completion of the mock run, the CSD opened its system for depositing of certificates on 25 August 2014, before going live officially on 8 September.

“Given the above facts, the CSD could only be up and running after registration and gazetting of CSD fees. These milestones weren’t within the control of Chengetedzai Depository Company.”

He said other stages were yet to be implemented as their initial strategy was to commence with the equities.

“Until these other stages have been implemented it’s too early to disclose the cost details. However, it must be noted that our software, which is the state of the art, was acquired at a great discount. . . courtesy of the software vendor,” he said.

The government gazetted the CSD regulations through Statutory Instrument 63 of 2013 in May 2013 to pave way for the operationalisation of the CSD.

The regulations set out a framework for the registration, supervision, and regulation of the CSD, as well, as licensing requirements for depository participants.