South Africa’s newest stock exchange, A2X has fully assumed operation with three listings and four of the industry’s leading brokers on board.
A2X competes directly with the JSE and provides an alternative platform for companies to secondary list and trade their shares.
Financial services companies, African Rainbow Capital Investments (AIL), Peregrine Holdings (PGR) and Coronation Fund Managers (CML) are the first counters to take advantage of a secondary listing on A2X.
Leading stockbrokers RMB Morgan Stanley, Peregrine Securities, Investec Securities and Avior Capital Markets have been approved while Nedbank Securities, SBG Securities and Sinayo Securities have applied and look set to follow shortly.
A2X has appointed Strate as its central securities depository and will operate within the proven and reliable South African settlement structure.
RMB Stockbroking Operations (Pty) Ltd and Computershare Outsourcing have also been approved as settlement agents, to perform a critical part of the post trade process where brokers elect to outsource their settlement services.
With the end-to-end costs of transacting in excess of 40% lower than current trading costs, stockbrokers have welcomed the choice brought about by a competitive exchange in South Africa.
A2X’s business model is dependent on throughput – the more trades processed via the exchange, the greater the revenues for A2X. A2X’s model aligns with the objective of growing the overall market in South Africa – lowering costs, improving liquidity and being both innovative and responsive to market needs.
A2X uses technology developed by the UK’s Aquis Technologies, a division of Aquis Exchange, which includes proven exchange matching and surveillance systems and a clearing platform custom-built for A2X. Aquis Exchange is authorised and regulated by the UK Financial Conduct Authority (FCA). The market leading exchange and surveillance systems are fast and efficient ensuring that any anomalies are detected early. They also allow for cross market surveillance which will be a first in South Africa.