New stock exchange for SA: ZAR X


South Africa has issued its first stock exchange operating licence - albeit conditional - in more than a century, to the ZAR X Stock Exchange, scheduled to begin operating in September this year, and begin trading in October. Etienne Nel (pictured), ZAR X CEO, said in a statement:

"The emergence of the ZAR X Stock Exchange is a signal that the rigid structures of the past are being dismantled, helping to clear the way for new entrants to the formal economy, especially black investors and entrepreneurs who are eager to make a bigger contribution to job creation and wealth generation."

According to Nel, through the new exchange investors will be able to trade securities across a high-tech platform that permits transactions to be executed on a T+0 or same day settlement of trades. The current time frame is T+5 or five days between matched trade and settlement and clearing into an investor's account.

Nel said:

"ZAR X has no historical practices and legacy systems which drive up costs and slow down transaction times. Our platform is specifically designed to give businesses a flexible, transparent and affordable way to list their shares. In particular, the exchange is especially well positioned to facilitate listings of restricted share schemes, currently trading OTC, which the FSB ruled were in contravention of the Financial Markets Act."

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