ZSE to introduce ETFs this quarter

 ZSE to introduce ETFs this quarter
Published: 17 October 2019
The Zimbabwe Stock Exchange (ZSE) says it will introduce the much anticipated Exchange Traded Funds (ETFs) this quarter as part of its concerted efforts to improve product offering to the market.

In April 2019, chief executive officer Justin Bgoni had told this publication that the exchange was in negotiations with key stakeholders to launch ETFs in Q2. As expected, Real Estate Investment Trusts (REITS) would take a long time as they have a more complicated tax

"Our efforts in increasing new products on the market has seen the ZSE introducing Direct Market Access (DMA) and ETFs will be launched in Q4," he said in a communique.

In June 2019, ZSE launched DMA to enable Fund Managers and Institutional Investors to enter their orders directly into the Automated Trading System (ATS) through a Client Binding Terminal without manual intervention by the broker. With this initiative, a buyer can place their own orders to the buy and sell columns instantly, and advertise the quantity and price of a stock at which they are willing to trade.

"All these efforts have been in line with our vision to facilitate economic Development of Zimbabwe and Africa, and has been made possible with the support of all our stakeholders."

ZSE is still lagging behind in terms of turnover and products it offers compared to regional counterparts.

Recently, the Botswana Stock Exchange (BSE) and ZSE signed a Memorandum of Understanding (MoU) to establish a basis for co-operation to help foster the prosperity of financial markets, promote cross border investments, cross border listings and explore further opportunities for co-operation between the two institutions.

The MoU will further promote the development of both capital markets.
- finx
Tags: ZSE, ETFs,


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