ZSE in talks with ATS software firm

Published: 22 January 2014

THE Zimbabwe Stock Exchange (ZSE) is in vendor contract discussions with Infotech Middle East FZ-LLC over the Automated Trading System with the outcome expected soon.

Last year, the ZSE invited bids for vendors who want to supply, install, test and support the requisite hardware and software for the implementation of an Automated Trading System (ATS).

The ATS, which is expected to be functional in the first quarter, will see the stock market presently trading on a manual platform being transformed into an electronic system to address put-offs to any serious investor due to the inherent risks posed by a manual system.

"The Zimbabwe Stock Exchange is pleased to inform all stakeholders that it has made a decision on the choice of a supplier for the exchange’s ATS.

"The board has approved the engagement of Infotech Middle East FZ-LLC subject to successful contract negotiations. It has been an intense four months since we appointed a consultant in August 2013 and issued a request for expression of interest in September 2013," said the bourse.

A total of 11vendors from different parts of the world expressed interest and bought the tender documents.

"Perhaps because of the rigorous requirements only four out of the initial 11 submitted full responses to the Request for Proposals within the deadline stipulated.

"The four were a consortium of local vendors led by Chartered Systems Integration in partnership with CMA Small Systems of Sweden, a consortium of Infotech Middle East FZ-LLC and local suppliers, the National Stock Exchange of India in partnership with Valentine Software of Zimbabwe, and New York Stock Exchange Euronext Technologies," it said.

ZSE said the initial valuation of all bids submitted narrowed down the competing vendors to a short list of two - CIS/CMA Small systems and Infotech Middle East.

In the last week of November the shortlisted vendors were given an opportunity to give oral presentations and demonstrations to support their bids.

However, the CSI/CMA Small Systems consortium was unable to participate in the demonstration exercises due to other circumstances beyond their control.

The ZSE said additional due diligence measures were taken in December and as a result of the report outcome of these efforts, its board approved the engagement of Infotech Middle East FZ-LLC.

Analysts contend that the continued use of a manual trading system has partly contributed to subdued market turnover. It is believed that the manual trading system has militated against the promotion of capital generation and compromised the viability of stockbrokers who are presently getting less commission.

The automation of the bourse will see it in tandem with international norms and standards of operation in terms of efficiency, transparency, fairness and cost-effectiveness.
- chronicle

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