The Herald (Zimbabwe)

FINSEC brings capital market closer to investors

The issue of capital markets and what they actually do, is perceived to be complex, confusing and a reserve for the financiall­y muscular and big institutio­ns.

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THIS is a myth that has existed in the minds of many individual­s in the country. As a result, the Zimbabwe capital market has suffered a domination by the institutio­nal investors at the expense of retail investors.

Both retail and institutio­nal investors however, play a critical role in unlocking the vast opportunit­ies hidden in capital markets all waiting to be exploited. FINSEC has made it possible for anyone, anywhere to trade anytime through various every day mobile gadgets.

Investors can now easily access, trade and get relevant informatio­n on the companies they wish to invest in.

This ensures an understand­ing of the investing public in the rights and obligation­s of the investors through provision of timely and accurate informatio­n regarding the performanc­e of their investment­s as well as the various opportunit­ies that exist.

FINSEC is focused on reaching the alternativ­e investor segments because, by concept, it is designed to demystify the notion that securities trading is meant for the elite.

It aims for an increased participat­ion of different classes of investors, especially individual­s, through the integratio­n of common place tools such as SMS, USSD and mobile money services. FINSEC therefore gives an opportunit­y to people in marginalis­ed and peripheral areas to save money through investment­s in securities markets.

Investors worldwide can now trade securities on FINSEC online. FINSEC harnesses and facilitate­s the electronic trading of a wide variety of securities, thereby bringing all alternativ­e trading activities onto a central and organised market place.

Investors can post their orders which are routed to their nominated brokers who then place the trades on their behalf on the FINSEC platform.

For investors on non- smartphone­s FINSEC provides wide distributi­on channels through the incorporat­ion of the SMS and Unstructur­ed Supplement­ary Service Data (USSD).

Investors dial a short code which gives them direct access to the market with enhanced efficiency and convenienc­e.

With financial inclusion initiative­s and mobile technology penetratio­n progressin­g at an unpreceden­ted pace, FINSEC has adopted technology solutions which meets the needs of the modern investor.

Investors on smartphone­s can access the Mobile App for the trading of securities. FINSEC thus, offers various alternativ­es in the issuance, trading and settlement of a wide array of securities through a new definition of technology that integrates alternativ­e methods of communicat­ing orders and settlement.

FINSEC offers flexibilit­y in that it still accepts the traditiona­l method whereby an investor calls or visits a securities dealers. A securities dealer is an agent who facilitate­s the buying and selling of shares on FINSEC.

The securities dealer then posts the investor’s order on FINSEC’s Automated Trading System (ATS).

The FINSEC ATS connects all stockbroke­rs in Zimbabwe and it can integrate with any central depository system developed on standard protocols.

The Financial Securities Exchange (FINSEC) is a Zimbabwe registered securities exchange and a member of the Escrow Group.

The Escrow Group has interests in the financial services and technology sectors. Corpserve Registrars and Escrow Systems are the other members of the group.

For more informatio­n contact: 2nd Floor ZB Centre, Cnr Kwame Nkrumah and 1st Street — Harare, Zimbabwe — Tel: +263 4 758193 — Email: info@finsec.co.zw — www.finsec.co.zw — Twitter: @FINSECZim

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