THE Zimbabwe Stock Exchange (ZSE) Automated Trading System (ATS) is reportedly experiencing continued technical glitches due to a bug in the debt market module that was introduced last week.
According to sources privy to the developments, the ATS started acting up a week ago resulting in delays in trading and at times a stop start to trading sessions.
By TechnoMag Reporter
According to a report that came out on Financial News Agency the Financial Express (FINX), the ZSE and its vendors were however confident that they had rectified glitch and trading had gone smoothly by end of day yesterday.
Electronic trading of the shares on the ZSE went live last year and was viewed as the first step towards reforming the capital markets in line with the international trends; replacing the manual trading platform that had been in place since 1896. The ATS is seen as the front-end of the trading cycle with the CSD being the backend of the automated environment with a mandate for settlement of both scrip and cash. In addition to Equities, the system is configured to trade fixed income securities with GetBucks Financial Service’s listing the first tranche of its $30 million medium term note programme last week.
Despite being one of the oldest in the region, the local bourse, has been lagging in automation, using the widely criticised open outcry system which analysts say is slow, unwieldy and costly.
Automated trading systems, also referred to as mechanical trading systems, algorithmic trading, automated trading or system trading, allow traders to establish specific rules for both trade entries and exits that, once programmed, can be automatically executed via a computer.
The trade entry and exit rules can be based on simple conditions such as a moving average crossover, or can be complicated strategies that require a comprehensive understanding of the programming language specific to the user’s trading platform, or the expertise of a qualified programmer.
Automated trading systems typically require the use of software that is linked to a direct access broker, and any specific rules must be written in that platform’s proprietary language.