AUTOMATED shares trading platform – C-Trade, is expected to expand to the Victoria Falls Stock Exchange (VFEX) in a move that will enable small-scale retail investors easy access to the US dollar-denominated exchange.
C-Trade is a platform that enables investors, both local and foreign to purchase securities from anywhere in the world anytime, using mobile devices.
The platform is currently used for trades on the Zimbabwe Stock Exchange (ZSE) and the Financial Securities and Exchange Limited (Finsec).
C-Trade product development manager Victor Mukara told stakeholders during a webinar on factors to consider when investing in stocks that plans were underway to introduce the platform to the VFEX.
“It is something we are working on and should be able to do later. We are working on integrating the platform on VFEX,” he said without giving the finer details.
C-Trade was launched by President Emmerson Mnangagwa in July 2018, becoming the first of its kind in the Sub-Saharan African region.
The platform also seeks to promote financial inclusion by encouraging participation by the smallest retail investor who for years had been excluded from capital markets.
It is estimated that the level of financial inclusion in capital markets is very low at 1 percent on the misconception they are elitist.
Prior to the launch of C-Trade, it is estimated that only around 7 000 individuals were active on the local capital markets.
But following its launch, there have been marked improvements in the number of retail investors participating in capital markets becoming a significant volumes pusher.
For instance last year, the platform accounted for over half the trades on the ZSE, although values may still be low. However, there have been awareness programs being hosted virtually to increase knowledge in capital markets and increase investor participation.
Having C-Trade on the VFEX will come at a time when the US dollar-denominated exchange is fast growing with more listings expected by year-end
Already, quick restaurants services group – Simbisa Brands is expected to migrate from ZSE to VFEX on December 02, in a move that is anticipated to enhance liquidity on the exchange. Financial services group- GetBucks has also indicated plans to migrate to the VFEX from the ZSE.
Mr Mukara, however, emphasized the need for first-time investors to have adequate information on investing in capital markets in order to derive maximum returns. Picking the right counter, sector, the amount to invest, duration and the risks associated with capital markets investments become key in making an investment decision.
Zimbabwe launched the C-Trade – an automated trading platform – in 2018, which effectively opened capital markets to all and enhanced financial inclusion. Escrow Systems, a subsidiary of Escrow Group provided the technology that also enables mobile and online share trading, becoming a first of its kind in the Sub-Saharan Africa region.
The platform allows one to place an order to buy or sell shares listed on the stock exchange; view the shares that one owns on one’s Internet-enabled device, access to real-time market data such as prices of shares, the volume traded, bids, offers, and integrates or links the investor, the broker, the ZSE and the Central Securities Depository (CSD). – Herald