Zimbabwe Stock Exchange (ZSE) has today noticed the public of launching a Direct Market Access (DMA) facility.
The DMA refers to the platform or mechanism whereby Fund Managers and Institutional investors can enter their orders directly into the Automated Trading System (“ATS”) through a Client Binding Terminal without manual intervention by the broker according to the ZSE Chief Executive Officer Justin Bgoni.
“The Zimbabwe Stock Exchange (“ZSE”) has launched Direct Market Access (DMA) facility with effect from 01 June 2019,” Bgoni says.
“DMA facility is offered through various connectivity modes which permit the trading members of ZSE to provide direct trading terminals to their DMA clients.”
One advantage of the DMA is there are lesser chances for human error, which may take place at the broker.
Trading will likely to be cheaper as the broker does not need to take their share.
A trader has also an upper hand over how an order is affected.
One other advantage is that orders should be effected spontaneously since they don’t have to go through an intermediary.
Explaining more on the DMA, the ZSE Chief Executive Officer said the application for the facility will be processed through the stockbrokers.
“A buyer can, therefore, place their own orders to the buy and sell columns instantly, and ‘advertise’ the quantity and price of a stock at which they are willing to trade,” he explained
“For effective implementation of the DMA, ZSE will resuscitate the ODD LOT Board with effect from 1 June 2019.”
“The Regular Board (“REG”) lot size has been revised to 100 (hundred) with a minimum tradeable value of $100.00 RTGS dollar whilst the Odd Lot (“ODD”) lot is 1 (one) with a minimum tradable amount for $0.01,” Bgoni went on.
The traditional way of placing a trade on the stock exchange is through a broker, who requests a quote for the order on behalf of the client.
Such a broker-assisted trade makes the market access be depended greatly upon personal relationships and broker competency.