CMA provides its Central Securities Depository system to the Chengetedzai Depositary Company, Zimbabwe
Stockholm, April 10th, 2013. CMA of Sweden has announced today that it had signed a contract for the provision of its DEPO/X solution – a Central Securities Depository system to Chengetedzai Depository Company Limited, based in Harare, Zimbabwe.
CMA’s DEPO/X solution will connect Chengetedzai Depository Company Limited, to 22 participants, including, 13 stockbrokers, 4 custodians, 3 transfer secretaries and 1 settlement bank as well as the Zimbabwe Stock Exchange.
Solution’s primary functions will be dematerialization of processed securities for the provision of quick and effective settlement based on DVP principles. For this purpose, the system accommodates special business-processes that significantly simplify process of transfer to- and settlement of dematerialized instruments.
At the first stage, the system will process stocks and simultaneously operate with the existing infrastructure for processing of physical securities.
DEPO/X will accommodate:
• Securities Settlement Agents (Brokers)
• Settlement Banks
• Transfer Secretaries (currently responsible for transaction processing of physical Securities),
• Security Commission and Reserve Bank of Zimbabwe.
The system will also support various types of investors - corporates, institutional investors and individuals - both foreign and local.
Solution will provide interface with the Stock Exchange intended for the automated processing of settlement results and trades including IPO и Secondary Market trading process. In addition, the system will provide an infrastructure for off-the-market trading process and settlement. Integration with Settlement system will provide support of DVP models 1 and 2 with DVP model 1 at the first stage.
“We are very happy to be able to provide our solution to Chengetedzai Depository Company Limited and thus contribute to the rapid development of the financial infrastructure of Zimbabwe” as per Alexey Nazarov, Managing Director, CMA –“it once again confirms CMA’s strong position on the African continent, and we are proud to count Zimbabwe as our customer”.
Chief Executive Officer of Chengetedzai Depositary Company Limited, Campbell Vincent Musiwa adds: “This indeed is a positive milestone towards the automation of our capital markets consistent with the international best practice, and we are elated to ride upon the vast experience and the dynamism of CMA. We stand ready to implement the depository system that will offer the best solution in our market within the envisaged timelines.”