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Oliver Kazunga Senior Business Reporter
THE Zimbabwe Stock Exchange (ZSE) is working on linking its automated trading system (ATS) to the Central Securities Depository to enable interaction of the two platforms and curb the selling of non-existent and blocked shares.

The ATS is expected to be functional in 2015 while the Central Securities Depository would offer a safer storage of securities and facilitate their transfer from one party to the other via an electronic entry.

In its latest bulletin the ZSE said: “With the automation of the trading system at the bourse underway, background work began to ensure that there is smooth connectivity between the ZSE automated trading system (ATS) and the CSD housed at Chengetedzai Depository Company.

“System vendors for the ATS and the CSD are working outright to ensure there is connectivity between the two systems.”

The stock exchange said the move was critical to prevent over-selling by clients.

“Before any trade is executed at the ATS, the system will validate if the client has enough shares to sell or if the client’s account is funded to execute the trade,” said ZSE.

It is envisaged the validated file will also include data relating to shares that are blocked from trade pending settlement with the counterparty.

“Initially, the process updating the clients’ holdings between ZSE and Chengetedzai will be done manually and periodically but once the CSD and ATS operating environments are stable, the process of updating the servers will be in real time,” it said.

“We’re glad there’s now consensus on this and once the agreed solution has been developed and tested by the vendors, we expect progress towards implementation to take place at a much faster pace than is evident,” said the ZSE.

Early this year the ZSE engaged Central Depository & Settlement Company of Mauritius to assist the local bourse roll out the ATS.

The consultant was also reviewing business processes of the ZSE which include tailor-making the system running the ATS.

Zambia, Namibia and South Africa are some of the Sadc countries whose bourses have ATS platforms.