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Harare - The Zimbabwe Stock Exchange (ZSE) started trading online on Monday through the Automated Trading System (ATS) for the first time in history.
By 09:00 on 6 July 2015, stockbrokers had already started inputting orders prior to the opening scheduled at 10:00.
Prior to Monday, the ZSE used a paper-based trading platform known as a call-over system.
The old system required stockbrokers to go to a trading room where they called out their buy and sale orders.
The Open Outcry Floor trading system involved shouting and the use of hand signals to transfer information primarily about buy and sell orders. Bids or offers were made out in the open market, giving all participants a chance to compete for the order with the best price.
The ATS will now allow brokers to trade from their offices.
Chief executive officer Alban Chirume said the introduction of the ATS is expected to improve daily turnover on the local bourse, while reducing trading risks inherent with the call over system.
Chirume said following the revision to the ZSE operating times, trading will be continuous from 10:00 to 12:30.
Chirume said ATS will see fees gradually coming down, as the regulator has been keen to reduce trading costs.
With effect from the July 1, ZSE fees are set to come down to 4.136% from 4.1880%.
Total transaction costs on the buy side have now decreased very slightly to 1.693% from 1.719%, while total transaction costs on the selling side will drop to 2.443% from 2.469%.
