A total ZWL$4.8 billion was exchanged on Zimbabwe Stock Exchange (ZSE)’s Central Securities Depository (CSD) during the first three months of 2022 from 157 304 763 trades, latest figures show.
According to the Q1 Depository Newsletter, 12 issuers have registered their shares on the platform to date.
Central Securities Depository (CSD) is an electronic register of securities such as shares, bonds, derivatives, Exchange Traded Funds.
It allows for ownership to be easily transferred through electronic book entry as opposed to the manual paper certificate transfers with its main functions including deposit and withdrawal of securities, clearing and settlement of trades, safekeeping of securities and management of corporate actions.
The ZSE Depository started its operations in October 2021 after securing approval for the Securities and Exchange Commission of Zimbabwe (“SECZ”) with CAFCA Limited as the pioneer.
Axia Corporation Limited, Amalgamated Regional Trading (ART) Holdings Limited, Truworths Limited, Seedco Limited, FBC Holdings Limited and Masimba Holdings Limited later joined the ZSE Depository in November 2021. Simbisa Brands Limited, Innscor Africa Limited and Dairibord Holdings Limited joined the ZSE depository in 2022.
In the first quarter of 2022, ZSE Depository onboarded two Exchange Traded Funds (ETF); Morgan & Co Multi-sector ETF Trust and Datvest Modified Consumer Staples ETF.
The ZSE traditionally derived its revenue from charging listed firms annual fees on top of statutory levy of 0.1 percent of every transaction value.
In 2020, annual listing fees accounted for 47 percent of the ZSE total revenue with statutory levy making up 38 percent of earnings. The CSD operation hence diversifies the company’s revenues.
ZSE had initially offered a 30 percent discount to companies wishing to migrate their shares from Chengetedzai Securities Depository to its new platform but this was overturned by the Competition and Tariff Commission citing unfair competition.
