ZSE works on market data policy

04 Oct, 2016 - 00:10 0 Views
ZSE works on market data policy Mr Alban Chirume

The Chronicle

Mr Alban Chirume

Mr Alban Chirume

Business Reporter
THE Zimbabwe Stock Exchange (ZSE) is crafting a market data policy that would see capital market players accessing customised information on the market at pre-determined times for a fee.

ZSE chief executive officer Mr Alban Chirume said the stock exchange was working on the proposed policy, which is part of the data services product.

“Following the automation of the ZSE’s trading system on 6 July 2015, an opportunity arose for the ZSE to offer data services. The product allows capital market players to access customised information on the market from the ZSE at pre-determined times for a fee.

“Such information includes trading prices (historical and real time) and corporate actions. To offer such a product, a market data policy must be in place. Previously, data was available for free,” he said.

Mr Chirume said information, regulation and technology are part of the key success factors for any securities market thus the ZSE offers a regulated platform through which companies can raise capital and securities of those companies can be traded on an automated trading system.

“Though the market has not had the market data policy before, the ZSE availed market information for free, which still assisted capital markets’ players in decision making.

“However, the free market data was not tailored to the different needs of stakeholders. One of the benefits of automation is that it allows the ZSE to offer tailored data, which assists the capital market players in decision making.

“As such, the data services product offers subscribers an opportunity to customise their data requirements, thus adding value to the stakeholders,” he said.

Mr Chirume said the market data policy aims to meet the diverse requirements of all of stakeholders who have an interest in the country’s market within an agreed framework.

“Data products assist the capital markets’ players in obtaining real time information. Certain investors will not invest in a market, which does not offer data products. The automation of any trading platform for a stock exchange is said to improve transparency as this allows for the market to access data in various forms. By dissemination of data through data vendors who subscribe to ZSE’s data products, the visibility of the stock market is also enhanced,” said Mr Chirume.

He added that data services also aid in improving the quality of research that is carried out on the stock market.

“As an example, the data services product assists researchers (including students) to access historical data in the format they request. Once an exchange’s trading system is automated, the natural progression is the offering of market data as it is critical in providing real time information to the market while also generating revenue for the exchange,” said Mr Chirume.

The Johannesburg Stock Exchange, Nairobi Securities, Stock Exchange of Mauritius and Nigerian Stock Exchange are some of the bourses in Africa with market data policies.

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