Chengetedzai runs CSD mock tests

Chengetedzai runs CSD mock tests
Published: 09 July 2014
CHENGETEDZAI Depository Company is doing mock-runs ahead of the launch of the Central Securities Depository (CSD).

Sources said the system was now live and all the players - the Zimbabwe Stock Exchange (ZSE) and Securities Exchange Commission of Zimbabwe (SECZ), among others - were operating on it.

"They [Chengetedzai Depository Company] are doing mock-runs and the system is now live. The mock-runs are involving every player in the sector," the sources said.

Chengetedzai Depository Company chief executive officer Campbell Musiwa was unavailable for comment yesterday.

A CSD is a system that maintains an electronic register of securities or financial instruments such as shares, bonds and other fixed income instruments and provides an efficient settlement process.

The records are kept in an electronic form and transfer is by way of electronic book entry.

SECZ approved the establishment of a CSD to be run by Chengetedzai Depository Company under a one-year licensing deal.

Government entities, which include the Infrastructure Development Bank, ZB Holdings and the National Social Security Authority, will hold 51% of the CSD firm.

A CSD is an organisation holding securities either in certificated or uncertificated (dematerialised) form to enable book entry transfer of securities.

CSD will run concurrently with the automated trading system of the bourse. Chengetedzai won the tender in 2010 and it has taken long for the system to be operational due to various challenges.

CSD will run alongside the automation of the local bourse as the ZSE is currently working on a plan to help quicken the trading of shares as part of reforms on the capital markets.

Finance and Economic Development minister Patrick Chinamasa recently said the capital markets needed to embrace efficiency to attract investors thereby resuscitating the productive sector.

The ZSE presently uses a call over system on the floor of the stock exchange and is operating on a T+7 transaction settlement system against physical delivery of scrip, where delivery and payment of share transactions can take seven days.

- newsday
Tags: Chengetedzai, CSD,


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