Derivatives Trading – Participant Roles and Responsibilities

The Financial Securities Exchange (FINSEC) continues to be the torch bearer in deepening and broadening the local capital markets through product and service innovation. The Derivatives products that FINSEC is bringing will provide investors with more choices and will ensure Zimbabwe takes its rightful place in securities trading.

Derivatives are investment instruments that consist of a contract between parties whose value derives from and depends on the value of an underlying financial asset. Derivatives trading through FINSEC involves a number of specialist participants, each playing a crucial role in the transaction value chain as part of the risk management.

As the exchange, FINSEC will be the central market place where all contracts will be written, and trades undertaken. The exchange provides the Automated Trading Platform that will facilitate automated contract writing and matching. The FINSEC platform will be extended to offer central counterparty facilities to all trades and to manage positions of all open contracts.