VFEX hits US$5bn mark
THE Victoria Falls Stock Exchange (VFEX) Securities Depository reached US$5 billion in value of trades in the first quarter of 2022 with the total volume of trades standing at 93 494. The VFEX Depository, which is a subsidiary of the Zimbabwe Stock Exchange (ZSE), started operating in October 2020 with Seedco International Limited as the first counter.
In July 2021, VFEX on-boarded Padenga Holdings Limited as the second issuer. Caledonia Mining Corporation and Bindura Mining Corporation later joined VFEX Depository in the last quarter of 2021.
The ZSE Vfex Depository newsletter shows that as at March 31, 2022, VFEX had four issuers, one of which is a depository receipt.
During the period the average Dematerialisation (Demat) Ratio for the counters on the VFEX Depository as at March 31, 2022 was 71,25%.
Demat is the process of converting physical shares and securities to digital or electronic form with the basic agenda being to smoothen the process of buying, selling, transferring and holding shares and also making it costeffective and foolproof.
“The introduction of the depository has created a smoother interface between the Automated Trading System and the Central Securities Depository (CSD) which provides a solid base for the development of new products on the market.
“The ZSE is in consultation with various stakeholders to develop turnaround trades on the market. The depository is also playing a pivotal role in the growth of ZSE Direct as the ZSE continues to promote financial inclusion,” ZSE revealed.
Meanwhile, ZSE securities depository closed the period with $4,8 billion worth of trades that settled on its depository, as volumes traded hit 157 304 with 9 427 trades settled.
The ZSE was licensed to operate a CSD in July 2021 and on-boarded its first counter in October 2021 and started its operations 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 on-boarded two Exchange Traded Funds (ETF): Morgan & Co Multi-sector ETF Trust and Datvest Modified Consumer Staples ETF.
As at March 31, 2022, the ZSE Depository had 12 issuers, two of which are ETFs.
“The ZSE Depository clearing follows a T+3 settlement cycle. For all trades executed on T+0 , the ZSE Depository determines the cumulative obligations of each participant between T+0 and T+2 day and electronically transfers the data to respective participants, all trades concluded during a particular trading date are settled on a designated settlement day ie T+3 day, “ZSE said.