A WEE DRAM
CHRIS GILMOUR: Low-cost A2X on course to meet launch deadline in challenge to JSE monopoly
‘A2X founders are confident of making a noticeable dent in the JSE monopoly’
Alternative trading venues are proliferating on global stock markets. In line with this trend, a new South African-based securities exchange, A2X, should be launched later in 2017, competing with the JSE. A2X will provide a secondary listing platform for existing JSE-listed stocks, and share-trading costs will be significantly cheaper. "SA is missing out on a large slice of global capital flows as it is a high-cost destination," says A2X CEO Kevin Brady. "By using the latest technology and business practices, A2X will cut the end-to-end cost of transacting by around 40% and in this way attract liquidity to the local market. International experience has seen the introduction of competing exchanges in many guises," says Brady. "Over the years in SA, companies and investors have looked for alternatives to the JSE, such as the OTC [over-the-counter] environment run by brokers," he says.In response to the changing landscape of stock exchange models, the Financial Services Board passed th...
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