THE Zimbabwe Stock Exchange (ZSE) has announced the registration of Old Mutual Securities (Pvt) Limited (OMSEC) as the first market maker on the ZSE.
Equity Axis News
OMSEC has been approved as a market maker for an Exchange Traded Fund (ETF) which is anticipated to list in due course.
The registration of OMSEC is in accordance with the ZSE Market Making Rules and was with effect from April 16, 2020.
As part of efforts to widen investment choices, the ZSE in 2019 came up with the initiative to introduce ETFs.
The ETFs are meant to be part of a threefold mandate which includes growing the exchange in terms of new products, listings, investors and expanding ZSE’s reach and influence, improving stakeholder relations and getting fundamentals right through regulatory processes and supporting activities.
The introduction of ETFs has however been delayed by the coronavirus which led to the declaration of a 21-day lockdown to contain the spread of the virus.
A market maker’s role on the ZSE is to provide liquidity in listed securities by submitting both bids and offers for a designated security during the designated Market Making session, ZSE chief executive Justin Bgoni said.
OMSEC is wholly owned by Old Mutual Zimbabwe Limited, a subsidiary of London Stock Exchange-listed Old Mutual plc.
It is a member of ZSE and its clientele includes institutions and high-net worth individuals.