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A2X Exchange Review

Read our latest article to increase your trading knowledge: A2X Exchange Review   Overall A2X Exchange shares and prices are available on several platforms. A2X is licensed and regulated by the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) by the South African Reserve Bank (SARB). A2X Exchange has listings from key sectors like media, property, mining, banking, retail, FMCG, financial services, insurance, healthcare, and telecommunications.   A2X Exchange at a glance Broker’s NameA2X Exchange TypeStock exchange Year Founded2014, opened for business in 2017 LocationSandton, Johannesburg, South Africa Regulating AuthoritiesFinancial Sector Conduct Authority (FSCA), formerly known as the Financial Services Board (FSB), and the Prudential Authority (PA) by the South African Reserve Bank (SARB). Key peopleAshley Mendelowitz – Chairman Kevin Brady – Chief Executive Officer No. of listings30+ Market capR 2.1 trillion Market HoursMonday – Friday: 09:00–16:50 (SAST) Support HoursMonday – Friday: 07:30 – 17:30 (SAST)   A2X Exchange Review – 11 Key Point Quick Overview Revealed (2023): A2X Exchange Overview History of A2X EXCHANGE Ownership of A2X EXCHANGE Regulation of A2X EXCHANGE Benefits of trading on A2X EXCHANGE Awards won by A2X EXCHANGE Exchange codes used at/for A2X EXCHANGE Companies listed on A2X EXCHANGE How to list on A2X EXCHANGE Contact details of A2X EXCHANGE Frequently asked questions   A2X Exchange Overview   According to research in South Africa A2X EXCHANGE is a stock exchange that plays an integral part in the progression of the South African marketplace.   A2X Exchange opened its doors for trade on 6 October 2017 when it was established by an experienced team of professionals, all hand-picked from across the financial services and technology industries.   Their experience, combined with stable systems, cutting-edge technology and an agile environment enable A2X Exchange to provide an efficient and cost-effective trading venue to the market where secondary listing of companies and shares trade can take place.   The team strive to empower the market with choice by providing a complementary venue for companies to secondary list shares for trade by using the latest high-performance exchange technology supplied by Aquis Exchange in the UK. This way they are able to offer large fee savings on the end-to-end cost of transacting and a seamless trading experience for brokers.   A2X Exchange fits into the existing capital market infrastructure and uses STRATE and its participants to settle all trades transacted on the exchange.   At A2X Exchange there is the realisation that a broker strives to achieve best execution for their clients when trading and the team have created a venue where they can do just that. By monitoring action across several markets they will be able to find the best share price at any given point in time.   Trading on A2X Exchange also means a direct cost savings to all as a result of lower transaction and clearing fees, narrower spreads and increased market activity. The full visibility of price and volume activity provided by the exchange will empower brokers and traders to achieve best execution when transacting in listed securities across both A2X Exchange and the Johannesburg Stock Exchange (JSE).   A2X Exchange shares and prices are available on several platforms and the team have created simple, easy to use guides to help anybody find the data they require on their platform of choice.   History of A2X EXCHANGE   A2X Exchange had opened its doors for trade on 6 October 2017 due to a team committed to progressing the financial marketplace in South Africa.   The process to open the exchange started on 10 October 2014 when the A2X company was founded by Sean Melnick, Ashley Mendelowitz and Kevin Brady, all three individuals with vast experience in financial markets and technology. At the time they shared the common goal to create a new South African exchange that would bring healthy competition to the market.   In March 2017 African Rainbow Capital (ARC) acquired a 20% share in A2X and ARC Chairman, Patrice Motsepe, declared that they were happy to support the group because of it bringing effective competition in an industry traditionally dominated by one player. He said that competition drives market efficiencies, and the establishment of A2X Exchange would benefit all users, including individual investors and pensioners.   On 6 April 2017 A2X was issued with an Exchange Licence with an infrastructure to clear and A2X could officially become a new South African exchange licensed in terms of the Financial Markets Act of 2012.   On 6 Oct of that year A2X Exchange went live with three listed companies: African Rainbow Capital, Peregrine Holdings and Coronation Fund Managers became the first companies to list on A2X Exchange.   At the time Anton Pillay, Coronation CEO, expressed their appreciation for the impact that A2X was likely to have on South African markets, explaining why Coronation, as active player in the South African equity market as issuer and fund manager, felt the need to be part of such an evolution.   During November 2017 Afrimat secondary listed on A2X Exchange, with Andries van Heerden as CEO of Afrimat explaining his rationale for listing. He said their board agreed that stock exchange competition would be healthy for the entire market and that they supported the idea that reduced cost of trading will bring in additional investors.   That was soon followed by secondary listings by Sandown Capital, which, after unbundling from Peregrine Holdings, listed on A2X Exchange on the same day as on the JSE.   At the beginning of December 2017 NALA acquired a 10% stake in A2X and from January 2018 Reuters provided real-time price data of shares listed on A2X Exchange. At the time MD Thomson Reuters Africa Sneha Shah said that they believe in open markets where multiple players thrive, using systems that drive efficiency and provide better customer experience. He gave that as reason why they were open to working with and providing data from all exchanges to customers so that a variety of places to trade are offered and more informed trading decisions could be made with the clearest view of what was happening around the world.     In Apr 2018 the Huge Group Limited secondary listed on A2X Exchange, with CEO James Herbst explaining that it was not a very difficult decision to make, since there were neither additional costs to Huge of listing its shares for trading on A2X, nor an additional administrative burden. Their rationale for a secondary listing was mainly to bring the prospect of lower transactional costs to investors who trade their shares and the continuing obligations would be easy to fulfil.   Also in April 2018 Bloomberg started to provide real-time price data of shares listed on A2X Exchange, an A2X CEO Kevin Brady welcomed it by saying that Bloomberg had a strong user base amongst industry participants and investors in the South African financial markets, so the availability of A2X data on that platform was an important development in providing full visibility of price and volume activity on the exchange.   He felt that would empower the industry to achieve best execution when transacting in listed securities across multiple trading venues.   That was soon followed by a secondary listing on A2X Exchange by Sanlam and Sanlam shares became available for trade on A2X immediately. Sanlam Chief Executive Ian Kirk said that Sanlam’s A2X listing was in the interests of its shareholders and provided an opportunity to participate in the ongoing development and overall growth of South Africa’s capital markets.   At the end of May 2018 Ascendis Health secondary listed on A2X Exchange, with its CEO Thomas Thomsen also saying that they were pleased to complement their primary listing on the JSE with the secondary listing on A2X. They saw that secondary listing as an opportunity to attract potential new investors through the lower-cost trading structure of A2X and broaden their shareholder base.   On 10 July 2018 Anchor Group became the sixth corporate from the Financial Services industry to list on A2X Exchange. Anchor’s CEO, Peter Armitage felt that such a secondary listing on A2X gave brokers more options and supported free market principles, without any added risk or cost to his company, while it made economic sense for them to back people who were bringing down overall costs.   Also during July 2018 Growthpoint Properties became the first property listing on A2X Exchange. Group CEO Norbert Sasse expressed the belief that their secondary listing on the A2X Exchange would contribute to the growth and efficiency of South Africa’s financial markets, encourage competition and align with global practices.   In September 2018 Sygnia Limited secondary listed on A2X Exchange and offered Sygnia an opportunity to broaden and diversify its offering to benefit its clients and spur local innovation and in November Standard Bank Group Limited Ordinary Shares and Preference Shares and AVI Limited become available for trade on A2X Exchange too.   AVI was the first FMCG company to list on A2X Exchange, which A2X CEO Kevin Brady saw as an important milestone.   Shortly thereafter African Rainbow Minerals became the first company from the mining sector to list on A2X Exchange, followed by Naspers Limited in December 2018. Its CEO, Bob van Dijk, said that as one of the world’s leading technology investors they understood the value of technology and were pleased to support these efforts by also listing on A2X.   The year 2019 started off with Santam Limited secondary listing on A2X Exchange.   Santam CEO, Lizé Lambrechts said they were continually looking for new ways to add benefit for clients and shareholders and saw that additional listing as an opportunity to attract potential new investors.   On 4 February 2019 A2X Exchange’s application to extend its licence to include the secondary listing and trading of ETFs and ETNs was approved by the FSCA and the Prudential Authority and a few day later Tharisa plc shares become available for trade. For that company the secondary listing on A2X was an opportunity to improve liquidity and attract new investors through the lower trading costs without any additional regulatory requirements or ongoing obligations.   In April 2019 Aspen secondary listed on A2X Exchange which offered its investors trading benefits while simultaneously providing the prospect of increasing its shareholder base.   In May 2019 Mr Price became the first retailer to list on A2X Exchange, which, according to CEO Mark Blair, allowed the company better choices to investors and opened up opportunity for it to attract potential new investors.   In June and July 2019 the second and third property groups joined A2X Exchange: First Property Investment and Development Group NEPI Rockcastle and then Equites Property Fund.   Those listing were soon followed by those of Absa, which was first to secondary list Exchange Traded Funds (ETFs) on A2X Exchange. The metal EFTs available for trade were NewGold (GLD), NewPlat (NGPLT) and NewGold Palladium (NGPLD)   Chris Edwards, Head of Prime Services and Index Solutions at Absa Corporate and Investment Bank, said ETFs were cost sensitive and adding a secondary listing allowed investors to capture not only the direct saving of lower transaction fees but also the indirect savings that accrued as result of narrower spreads and increased liquidity.   In July 2019 Vunani financial services group secondary listed on A2X and CEO Ethan Dube explained the act as a way of bringing together diversified financial services platforms and product offerings. He saw the listing on the exchange as another way for them to give more choice to investors and opening opportunity to attract potential new investors.   Their listing was followed in August 2019 by industrial goods and services group Invicta, whose CEO Arnold Goldstone said that their secondary listing on A2X further underpinned their commitment to creating long-term value for stakeholders.   Transaction Capital secondary listed on A2X Exchange in September 2019 because, according to CEO, David Hurwitz, they supported free market principles and saw A2X Exchange as a pioneering platform.   In October 2019 Investec listed the first exchange traded notes (ETNs) on A2X Exchange. Tinus Rautenbach, Head of Equities at Investec CIB said that passive products such as ETNs were particularly cost sensitive as they track an underlying index consisting of a basket of securities. He said their ETNs were market leaders as they had a zero total expense ratio and making them available to investors on the A2X low-cost platform would extend their value proposition to investors.   Fairvest Property Holdings was the next property group to secondary list on A2X Exchange and did so in October 2019, which they saw as an opportunity to attract potential new investors and broaden their shareholder base.   In November 2019 Emerging helium and domestic natural gas producer Renergen Limited listed on A2X Exchange because they too saw compelling value in this platform for their shareholders.   The year 2023 started good for A2X Exchange when in February Sasol listed on the platform. Sasol Chief Financial Officer, Paul Victor, explained Sasol’s decision to list on A2X as part of the company’s commitment to continually find ways to increase value for shareholders as well as provide them with a variety of trading venue options.   In March 2023 the City Lodge Hotel Group listed on A2X Exchange and group CEO, Andrew Widegger reiterated that they saw this secondary listing not only as a way to save investors’ money through A2X’s low cost structure but also as an opportunity to attract potential new investors.   In April Exxaro Resources shares become available for trade on A2X Exchange and CEO Mxolisi Mgojo said their listing on A2X supported their commitment to investors and the South African marketplace because mining still plays a significant role in the economy of the South African nation and they believe that one of the keys to remaining relevant is to incorporate emerging technologies into their business operations.   In May 2023 Hudaco was welcomed by A2X CEO Kevin Brady, applauding the company’s remarkable 125-year history and in August Momentum Metropolitan also joined the list of companies listing on A2X Exchange.   As a major participant in South African financial markets, Momentum Metropolitan Group Finance Director Risto Ketola said they were committed to support initiatives that drive down the frictional costs in financial market transactions and believed that healthy competition was to everyone’s benefit.   Ownership of A2X EXCHANGE   A2X Exchange is owned by a small group of founding shareholders, management and staff, with African Rainbow Capital holding a 20% stake and broad-based empowerment company Nala a 10% stake.   A2X Exchange is run by the small but diverse team that was hand-picked from across the financial services and technology industries. They combine their collective experience and insight to operate the stock exchange in a way that challenges the norms, progresses the market and gives their stakeholders an exceptional and valuable experience.   Each of the team members plays an important part in the business because his or her contribution, added to the right attitude, result in the overall exceptional performance of the exchange.   The team consists of the following people: Ashley Mendelowitz as Non-Executive Chairman Sean Melnick as Non-Executive Director Kevin Brady as Chief Executive Officer Bridget Radebe as Independent non-executive director Brenda Matyolo as Non-Executive Director Bert Chanetsa as Chair of the Regulatory Committee Gary Clarke as Head of Legal and Regulation Otsile Matheba as Chief Financial Officer Neal Lawrence as Chief Technology Officer Brett Kotze as Head of Post-Trade Services Kholofelo Motshekga as Market Surveillance Analyst Rose Willem for Post-Trade Services Luthfia Akbar for Legal and Regulation Stuart Jackson as IT Ops Support Analyst Diane Bomberg as Head of Marketing Mark van Eck and Emmanuel Mogashoa as IT Infrastructure Engineers   Regulation of A2X EXCHANGE   A2X is licensed and regulated by the Financial Sector Conduct Authority (FSCA), formerly known as the Financial Services Board (FSB), and the Prudential Authority (PA) by the South African Reserve Bank (SARB).   Between 1990 to 2018 the Financial Services Board (FSB) was the government of South Africa’s financial regulatory agency responsible for the non-banking financial services industry in South Africa.   Now known as the Financial Sector Conduct Authority, the FSCA’s mandate includes the following: To improve the efficiency and integrity of financial market Promote fair customer treatment by financial institutions Provide financial education Promote financial literacy and Assist in maintaining financial stability.   The Financial Sector Regulation (FSR) Act was signed into law on 21 August 2017 as culmination of collaboration on financial sector reform by the South African Reserve Bank (SARB), National Treasury and the Financial Services Board.   This act resulted in important changes to the regulation of the South African financial sector, including giving the SARB a clear mandate to maintain and enhance financial stability and creating a prudential regulator, the Prudential Authority (PA) which is responsible for regulating banks, insurers, cooperative financial institutions, financial conglomerates and certain market infrastructures.   The PA is a juristic person operating within the administration of the SARB and consists of four departments: The Financial Conglomerate Supervision Department; the Banking, Insurance and FMI Supervision Department; the Risk Support Department; and the Policy, Statistics and Industry Support Department.     Benefits of trading on A2X EXCHANGE   The A2X Exchange acts as a Multilateral Trading Facility styled exchange platform, operating as follows: Trading in qualifying equity securities The matching engine is an anonymous central order book All orders will be lit and matched on price/time priority All trades currently take place on-market A high performance, low latency platform Internationally proven technology   Trades executed on the platform are cleared by A2X Clear as follows: Clearing takes place on a multilateral basis Settlement occurs on a T+3 rolling contractual basis Settlement is assured and monitored by the A2X settlement committee STRATE is the appointed Central Securities Depository   The website of the A2X Exchange summarises the benefits of listing and trading on the exchange as follows:   Best Execution By looking cross-market brokers can ensure that they will get the best deal for their clients according to international best practice.   Choice and Reduced Fees Brokers now have a choice of trading venue. With A2X Exchange they can expect narrower spreads and increased liquidity that generate material savings while brokers also enjoy a 50% reduction on the end-to-end cost of transacting.   A Contingency Plan Should one market experience issues, listed shares will still be available for trade. Brokers realise that a secondary listing is the best way to show their shareholders that they value their investment and a secondary listing on A2X Exchange also complements a company’s primary listing by providing its investors with a choice of venue to transact.   A further benefit is that this comes with no impact on a company’s primary listing, nor any cost, risk or additional regulatory burden.   The situation creates real benefits for shareholders, including lower transaction costs, narrower spreads and increased liquidity that in turn generate material savings for the end investor.   Lower the cost of raising capital Narrower spreads and deeper pools of liquidity have been proven to lower the cost of raising capital.   International Best Practice Multiple listings in the same jurisdiction are commonplace in most developed markets and increasingly so even in many developing markets.   Regulatory authorities around the world have moved to open up capital markets to competition to initiate benefits competition brings to the end user – often the pension fund of an everyday working person.   Experience savings through efficiency In South Africa, based on a typical day’s trading activity of R20 billion in equities, efficiency savings that can accrue to industry and the end investors are estimated to be more than R4 million per day, or a huge R1 billion per year.   Awards won by A2X EXCHANGE   Despite being in operation for only a few years, A2X Exchange has already discerned itself by raking in several prestigious awards. These include the following: 2019 Global Banking & Finance Awards – Best New Stock Exchange in Africa 2020 Global Banking & Finance Awards: Fastest Growing Stock Exchange South Africa CEO Kevin Brady – Stock Exchange CEO of the Year South Africa International Business Magazine Award Winner 2023: Mr. Kevin Brady – Stock Exchange CEO of The Year Africa Best New Stock Exchange Africa 2020 International Finance Brokerage Awards – Best New Stock Exchange Company   Exchange codes used at/for A2X EXCHANGE The market identifier code (MIC) is A2XX The Bloomberg Exchange Code is AJ The Identification of Requirements for Enterprise Social Software (IRESS) Exchange Code is @A2X or ZAX (Consolidated) The Thomson Reuters Exchange Code is A2X The Security Reference Data code is security.csv   Companies listed on A2X EXCHANGE   A2X Exchange began trading in October 2017 and focuses on providing a cost-effective and efficient trading venue. At the beginning of 2018, A2X Exchange only had five listed companies with a combined market cap of around R50 billion, but by mid-2020 there had already been 38 companies listed with a combined market cap of over R2.2 trillion.   A2X Exchange has listings from key sectors like media, property, mining, banking, retail, FMCG, financial services, insurance, healthcare, and telecommunications.   These listed companies include: African Rainbow Cap Inv. (AIL); African Rainbow Min Ltd. (ARI); Afrimat Limited (AFT); Anchor Group Limited (ACG); Ascendis Health Ltd. (ASC); Aspen Pharmacare Holdings (APN); AVI Ltd (AVI); Coronation Fund Managers (CML); Equites Prop Fund Ltd. (EQU); Fairvest Property Holdings (FVT); Growthpoint Prop Ltd. (GRT); Huge Group Ltd. (HUG); IBSWX40TR2ETNOCT2022 (SWXTR2); IBTOP40TR2ETNOCT22 (TOPTR2); Invicta Holdings Ltd. pref. (INTP); Invicta Holdings Ltd. (IVT); Mr Price Group Limited (MRP); Naspers Ltd -N- (NPN); NEPI Rockcastle Plc (NRP); NewGold ETF (GLD); NewGold Palladium ETF (NGPLD); NewGold Platinum ETF (NGPLT); Peregrine Holdings (PGR); Renergen Limited (REN) and Sandown Capital (SDC).   How to list on A2X EXCHANGE To be eligible for a secondary listing, the applicant must be an issuer in good standing with the JSE.   The secondary listing application consists of a two-page document which must be completed and signed by an authorised signatory of the applicant issuer before it is submitted to A2X.   This application document contains the following information: A declaration that the applicant is an issuer in good standing with the JSE The URL address where the latest annual financial statements, interim financial statements and regulatory announcements of the company can be found Administrative information about the issuer including name, ISIN number, financial year-end, and contact details of key officers, sponsor, auditors etc.   Once the listing application has been approved by A2X Exchange, the issuer will be provided with a formal approval letter and a date for listing agreed upon between A2X and the issuer.   Once a listing date has been agreed, the issuer (as facilitated by A2X) will be required to provide the market participants with five days’ notice of the proposed listing date through the A2X news service to allow all participants to ensure that their systems are updated to include the new listing and allow for trading from that day.   An equivalent JSE SENS announcement is not required to be distributed, but many of the issuers listed on A2X Exchange distributed this notification to the market via SENS. This JSE process is facilitated by the issuer’s sponsor.   Communication with the press and other role players then follows: In the past it happened that once the A2X announcement was distributed, the media picked up on the new listing quickly, so it is suggested that the issuer communicates with A2X and agree on a joint approach and message to the press.   Once listed on A2X Exchange, the issuer has two more obligations that it is required to comply with: All JSE SENS announcements must also be distributed on the A2X news service. It works best if the issuer copies A2X ([email protected]) on correspondence with its sponsor in respect of any JSE SENS announcements to ensure that A2X has the announcement in advance of it being distributed on SENS. A2X has an agreement with the JSE that they will not distribute an issuer announcement prior to the announcement going out on JSE SENS. The A2X announcement is activated by the receipt of the real time notification of the SENS release.   The issuer must state that it has a secondary listing on A2X Exchange in its annual financial statements   Contact details of A2X EXCHANGE   All the necessary information on A2X Exchange can be found on the company website.   Frequently asked questions When was A2X Exchange founded? A2X Exchange opened its doors for trade on 6 October 2017 but the process to open the exchange already started on 10 October 2014 when the A2X company was founded.   What is the A2X model? A2X Exchange adheres to the requirements and principles of the conventional self-regulatory organisation (“SRO”) model and the provision of securities services that has come to be expected from an exchange within the context of the South African financial markets.   The A2X rules provide for the supervision of authorised users consistent with international best practice for a fair, efficient and transparent market promoting the protection of clients and investors. Its listings model is consistent with international trends and according to the regulation of issuers with a secondary listing in South Africa.   An investor protection fund and exchange fidelity insurance policy are established to assist in achieving all regulatory objectives.   How does the A2X model work? A2X Exchange only lists qualifying equity securities, meaning those with a primary listing like on the JSE. A2X Exchange initially targets all securities listed on and traded on the equity trading system of the JSE, hence relying partly on the ‘host’ market to provide the regulation of the issuers of qualifying equity securities.   No initial public offerings or capital raisings were offered by A2X Exchange at first and only once the business is up and running, additional products and geographical areas will be considered.   What does the A2X IT Infrastructure look like? A2X Exchange has licensed the systems for its core exchange platform from Aquis Exchange, including the matching engine, the surveillance system as well as the clearing platform.   Aquis is authorised and regulated by the UK Financial Conduct Authority (FCA) to operate a Multilateral Trading Facility (MTF). Aquis Exchange has a high performance, highly scalable and highly resilient matching engine that allows high numbers of fast simultaneous trading connections and transaction capacity designed to process a high volume of messages per day.   The Aquis matching engine technology is proven and currently operational on thirteen European markets. The clearing system is integrated to the matching engine using the industry standard Fix protocol. All technology is located and managed in Johannesburg with full redundancy.   How does clearing and settlement work with A2X Exchange? The A2X Clearing System manages the clearing and settlement risk process through the use of a number of mechanisms. All members and clients of members must meet the requirement of appointing an approved CSDP and have a custody account and a fund settlement account.   A2X Exchange operates a T+3 settlement cycle and has appointed STRATE, with its infrastructure of CSDPs, as its Central Securities Depository (CSD). A2X Trading Rules on Clearing and Settlement prescribe that the overriding principle applied by A2X Exchange is that of settlement assurance, meaning the member is responsible for the settlement of all transaction in equity securities executed on the trading system by them.   Where a member trades for a client, if the client does not meet it settlement obligations, the member assumes the client obligations and becomes responsible to settle the transaction and the member is responsible for the settlement of its principal transactions.   Members must have a current account for the Capital Exposure Requirement (CER) process and settlement of related fund and other money movements. A2X Exchange has established a Settlement Committee that oversees the clearing and settlement process of all transactions executed on the A2X trading platform.   A2X Exchange monitors the financial position of all members and they must comply with the prescribed capital adequacy requirements and remain within the credit limit of the member as prescribed.   Is there room for competition in the South African financial market? Sound competition in financial markets has lately become a firmly established principle internationally and the generally accepted consequences of this is being a reduction in direct and indirect costs, product innovation as well as an improved level of service.   In 2013, the Financial Markets Act (Act) replaced the Securities Services Act, and Section 2 of this Act deals with competition.   The section states that such competition should ensure fair, efficient and transparent South African financial markets and increase confidence in South African financial markets through the following: Provision of securities services in a fair, efficient and transparent way Contribute to maintaining a stable financial market environment Promote the protection of regulated persons, clients and investors Reduce systemic risk Promote international competitiveness of international and domestic financial markets and of securities services in South Africa.   Why is it beneficial for companies to have a secondary listing on A2X Exchange? A secondary listing on A2X Exchange complements a company’s primary listing by providing all its investors with a choice of venue to transact. This comes with no negative impact on a company’s primary listing, without any extra cost, risk or additional regulatory burden, while, bringing significant potential benefits to shareholders at the same time.   How does A2X Exchange survey and regulate the market? A2X Exchange has the responsibility to ensure a fair and orderly market, therefore it has established a properly qualified and experienced surveillance team.   These people are tasked to undertake the surveillance of the market and monitor potential market abuse and exchange rule breaches by users. They do this through the use of a highly sophisticated surveillance system which is provided by Aquis and approved by the United Kingdom’s FCA.   This technology allows for cross market surveillance, which is a first in the South African market.   Given that there will be two trading venues, how are market abuse provisions be enforced? A2X Exchange uses sophisticated market surveillance technology to ensure effective surveying of the A2X market.   The team also receives a live feed from the current operator that is fed into the surveillance system to allow for the identification of indications of possible market abuse across both markets. Any signs of abuse are further investigated, and action is taken when and where required.   Why is there is no provision in the A2X rules for brokers to hold trust accounts or segregate client assets? The safekeeping of client assets is the responsibility of the Central Securities Depository Participant (CSDP) who provides custody services as a core element of its business, hence no provision is made for what is known as “controlled clients” – those whose assets are under the control of the member and whose holdings are detailed on BDA.   The member has no access to clients’ assets and therefore providing for segregation of clients’ assets is not applicable.   Are companies able to raise capital on A2X? Initially companies will not be able to raise capital on A2X Exchange as it is a Multilateral Trading Facility (MTF) styled exchange.   Multilateral trading facilities allow eligible contract participants to gather and transfer a variety of securities, especially instruments that may not have an official market. As they go along, A2X Exchange plans to investigate expanding geographically product wise and initial public offerings (IPOs) – the process of offering shares of a private corporation to the public in a new stock issuance – will be investigated and considered.   Can a company ‘delist’ from A2X Exchange and how would it be done? The listing on A2X Exchange is a secondary listing, authorised by a company to include its shares in the A2X list of shares to be traded on the A2X platform and the process can be reversed.   The process to ‘delist’ is quite simple and basically requires the company to advise A2X that it no longer requires the secondary listing.   This instruction can be executed within 24 hours without any approval of shareholders or offer to minorities being required, since the company’s primary listing would be unaffected.   How is the Investor Protection Fund, set up to deal with the loss of cash securities, funded? An investor protection charge is levied on all trades conducted on A2X Exchange to build up this fund to an appropriate size.   5/5 – (1 vote)

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Creator :Louis Schoeman

Published on : 2023-01-17 08:02:49

Source :thenewage

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