South Africa to get a new stock exchange at the end of February

The FSB Appeal Board on Thursday (9 February) dismissed the combined appeals of the JSE and 4AX against the granting of an exchange licence to ZAR X – allowing the company to proceed in opening a new stock exchange in the country.

“The exchange will focus on facilitating investment and savings for ordinary South Africans and providing business with a more efficient and cost effective method of accessing capital,” ZAR X said in a statement.

The FSB had first issued ZAR X with a trading licence in August 2016. However pending the outcome of the FSB appeals, acting in the best interests of its issuers and the market, ZAR X postponed its intended September 2016 start date.

“The judgement vindicates our belief that the JSE and 4AX appeals have been vexatious, aimed at preventing us from entering the market and, ultimately, eliminating us as a competitor,” said ZAR X director, Geoff Cook.

“At our request, the Competition Commission has launched an investigation into whether the JSE’s appeals amount to an abuse of dominance, which is prohibited under Section 8 of the Competition Act.”

“This week’s judgement gives the market the confidence that the FSB followed a rigorous process in ensuring that ZAR X’s license application fully complies with the Financial Markets Act and best international regulatory standards,” Cook said.

ZAR X’s first listing will take place before the end of February, with more issuers being announced in the next few weeks.

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