As you may know the Zimbabwe Stock Exchange (ZSE) began automated trading on Monday July 6th. Obviously this will help traders to trade more efficiently, but it got me thinking about the history of automated trading and how important this technological advancement has been in markets all over the world.
Case in point is the fact that, apparently, As of last year more than two thirds of all of the shares bought and sold on US stock exchanges originated from automated trading system (ATS) orders. That is a pretty big deal because if you think about it that is way more than half, and mark my words those numbers will only get bigger. We may very well see a day when 100% of all trades originate from automated trading system. I think that we all know that automation is the future and we can all be glad that the Zimbabwe Stock Exchange has joined us in the twenty first century.
That being said, what does the future of the Zimbabwe Stock Exchange look like at the moment?
Well, since the ZSE plummeted following the 2013 elections, it has certainly been tough going to say the least. In addition to a massive disinvestment in the market, there have been businesses collapsing. To say that things do not look good would be quite an understatement.
This is not to say that things won’t get better. It simply means that while automating the exchange is a good way to improve trading volume, its obviously not going to be enough to turn things around any time soon. I think that the experts would all agree that it will have a beneficial affect, in terms of liquidity and favorably influence numerous other factors. The bottom line is that this is but one more step in the right direction on a long path to financial prosperity in Zimbabwe.
If you have the chance you may want to get down to Zimbabwe yourself and check out the scene and see what you think. Of course it is much easier to just read article on the Internet and get your information that way, but there is definitely something to be said for getting out of the house and getting your finger on the pulse of a market that is rapidly evolving. If you do make it over be sure to check out Victoria Falls which are some of the most beautiful waterfalls in the world. You can even book a flight to fly over the falls in a helicopter, or if you are more daring your can bungee jump over them. Remember, business is important, but its also important to do fun things with your loved ones and create memories that will last a lifetime.