ZAR X has been granted a stock exchange licence by the Financial Service Board (FSB) of South Africa, the first company to do so in more than 100 years. The licence enables the company to operate a fully-fledged, independent stock exchange and provides what it calls an exciting “alternative to companies that want to list their securities on a licensed exchange”.
South Africa’s first, and until now, only bourse, the JSE, was formed in 1887 during the first South African gold rush.
After the first legislation covering financial markets in 1947, the JSE joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s. The bourse demutualised and listed on its own exchange in 2005.
ZAR X has now joined this elite club and investors are able to trade securities across a state of the art technology platform that permits transactions to be executed on a T+0 or same day settlement of trades, said CEO Etienne Nel. “The ZAR X model is world leading and significantly reduces settlement risk as all transactions are pre-funded.”By: Sophie Mongalvy and Paul Wallace.