The Zimbabwe Stock Exchange (ZSE) has now started consulting with key stakeholders on requirements for special securities, with the final design for the fourth quarter of 2018.
According to a basic survey of the ZSE, the take-up will be high in Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs). The Specialist Listings Requirements include the rules and procedures for new applications and the ongoing obligations of issuers for securities with investment effects, warrants, structured products, exchange-traded banknotes, exchange-traded funds and asset-backed securities. and depositary receipts for shares.
The design rules provide the framework within which securities such as REIT & # 39; s and ETF & # 39; s can be listed and traded on the ZSE.
ZSE acting CE Martin Matanda told businessdigest that the profile of investors in derivatives is likely to be dominated by more sophisticated investors (institutions and foreign investors) because of the complexity of the products and the higher risk.
Although the outlook for the market depends on the company's responsiveness to the changing environment and the needs of investors, Matanda expects the introduction of derivatives products to increase market depth and diversification potential for investors and issuers.
For derivative issuers, he said that there was a need for more information requirements, including the daily publication of intrinsic values (NAVs) and accrued interest for ETN & # 39; s.
"The ZSE's basic survey revealed that the take-up will be high in ETF & # 39; s and REITs." The ZSE aims to finalize stakeholder consultations and submit the rules to the Securities for approval. and Exchange Commission of Zimbabwe (SECZ) in the fourth quarter of 2018. The ZSE now presents key stakeholders on the rules in order to raise awareness and to receive feedback on the proposals, "he said.
The ZSE has published the draft Specialist Securities Rules for comment in June.