Browsing: Derivatives

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  • Zimbabwe is anticipating the listing of some Real Estate Investment Trusts (REITs) this year.
  • ZSE is expected to list the fifth ETF, Cass Saddle Agriculture ETF this week
  • FINSEC introduced automated contract writing and derivatives trading, complete with direct integration of the trading, clearing, custody, and settlement facilities
  • VFEX introduced broker-controlled accounts to ensure convenience in trading on the US dollar-denominated stocks trading platform
  • VFEX is expected to launch its mobile securities trading platform, VFEX-Direct, at the end of this month in a move meant to simplify trading

This year is shaping up to be a defining year for Zimbabwe’s capital markets. Financial Securities Exchange (Private) Limited introduced derivatives and chatter over a new asset class has whet curious investors’ appetite.

Zimbabwe is anticipating the listing of some Real Estate Investment Trusts (REITs) sometime this year, and this could deepen the country’s capital markets.

The Zimbabwe Stock Exchange (ZSE) is …

Finsec derivatives pic1
  • FINSEC introduces automated contract writing and derivatives trading, complete with direct integration of the trading, clearing, custody, and settlement facilities.
  • The market will be on a 6-month trial window to enable market participants and investors to familiarize themselves with the newly established market.
  • A derivative is an agreement between traders for selling or buying of shares, commodities, and currency in the future at an agreed price

Zimbabwe’s alternative trading platform, Financial Securities Exchange (FINSEC), has introduced the first-ever derivatives trading platform in Zimbabwe. This should further widen investment options for investors in the country.

FINSEC continues to be the torch bearer in deepening and broadening the local capital markets through product and service innovation. The derivatives products will provide investors with more choices and will ensure Zimbabwe takes its rightful place in securities trading.

Financial Securities Exchange (Private) Limited (FINSEC) is licensed by the Securities and Exchange Commission of Zimbabwe …

Understanding the Oil Price Decline and Futures Markets

By Terry Adembesa, Chief Officer, Derivatives Market, Nairobi Securities Exchange

A derivative contract is an agreement to engage in a commercial transaction in which the delivery of an asset is set for the future, while the price and various specifications of the contract are agreed at the time of contract initiation. These markets originated from burgeoning oil and grain markets. In the agricultural markets, these created a need for a farmer to secure a price at one point in time, store the grain, and deliver it at a later point in time.

Despite these markets initially being dominated by agricultural commodities, globally there has been a proliferation of other financial instruments such as currencies, bonds, and stock indices. Although the commodity derivatives markets include very active contracts in oil and precious metals, financial derivatives have remained the most traded instruments in the global derivatives markets.

Types of derivatives include forward …