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Bourse automation requires co-operation


THE successful automation of trading on the local bourse will require co-operation as a failure of the new system may disrupt trading processes, the Zimbabwe Stock Exchange (ZSE) has said.

Business Reporter

In an Automated Trading System (ATS) update, ZSE said acceptance tests would be performed at an agreed date.

“Unlike other joint systems in which every organisation could set its own timeline for connecting to the system and select the connection type; this project requires simultaneous transfer of all the members to the new system,” ZSE said.

Each member, the bourse said, would be required to complete their internal line-up and communication interface with ZSE including all necessary checks, training and procedures.

ZSE currently has 14 member firms that converge on the trading floor each day and an average of 1 500 trades are executed each month in the current manual environment.

“Much thought and effort has to be given to planning the conversion since this will pose a major risk, as a failure of the new system might disrupt ZSE processes,” the ZSE said.

On March 19, the bourse successfully concluded contract negotiations with InfoTech Middle East FZ (InfoTech).

The company was engaged by ZSE to supply and install the automated trading system. It was expected to consider how traders would cope with simultaneous trading of securities and a change in work procedures.

ZSE said it has chosen an established system it believes would meet the requirements of the local market fully.

“This way, it will be much faster and easier to reach an agreement on the trading method as opposed to in-house development which would potentially open up endless trading rules alternatives,” the bourse noted.

Meanwhile, a user consultative group (UCG) was established to facilitate participation from all market players. Its members include representatives from the Project Steering Committee (PSC), stockbrokers, custodians, asset managers and transfer secretaries. Input from the UCG will then be channelled to the PSC.

The views and input from members will be at the centre as the project enters the implementation stage.

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