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.<\/p>\n
“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.<\/p>\n
The FSB had first issued ZAR X with a trading\u00a0licence in August 2016. However\u00a0pending 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.<\/p>\n
\u201cThe 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\u00a0competitor,\u201d said ZAR X director, Geoff Cook.<\/p>\n
\u201cAt our request, the Competition Commission has launched an investigation into whether the JSE\u2019s appeals amount to an abuse of dominance, which is prohibited under Section 8 of the Competition Act.\u201d<\/p>\n
\u201cThis week\u2019s judgement gives the market the confidence that the FSB followed a rigorous process in ensuring that ZAR X\u2019s license application fully complies with the Financial Markets Act and best international regulatory standards,\u201d Cook said.<\/p>\n
ZAR X\u2019s first listing will take place before the end of February, with more issuers being announced in the next few weeks.<\/p>\n