More derivatives on the cards

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THE Securities and Exchange Commission of Zimbabwe (SecZim) says a number of derivatives are in the pipeline for the local capital market, following the introduction of the country’s fourth exchange traded fund (ETF) last week.
A derivative is a financial instrument that derives its value from another asset. These instruments have headlined global financial innovation over the past three decades, but Zimbabwe has lagged behind.

Last Thursday, Morgan & Co, an investment bank, launched an ETF — a derivative that offers the benefits of a diversified portfolio of investments, but with less complications.