STOCK EXCHANGE SPAT: FSB 'put markets at risk'
New stock exchange has taken its objection to rival ZAR X to the courts after the FSB rejected its claims
SA’s newest stock exchange, 4 Africa Exchange (4AX), has lodged court papers taking aim at its regulator, the Financial Services Board (FSB), for bungling of the worst order that placed SA’s “financial markets at large and investors at substantial and immediate risk”. In a mammoth 1,219-page lawsuit filed last week, 4AX is asking the high court in Johannesburg to overturn the FSB’s decision last August to grant its rival, ZAR X, a licence to operate. It’s a disturbing move, given that both 4AX and ZAR X were granted licences by the FSB on the same day. They are the first challengers to the JSE’s monopoly in the 59 years since the Union Exchange was shut down by government in 1958.4AX CEO Fay Mukaddam says her company has a “public duty to expose manifestly irregular and unlawful administrative action by its own regulator”. She says that by hastily granting the licence to ZAR X, the FSB “disregarded and subverted [its] core function and duties as regulator”. Its process was “manipula...
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