South Africa gets A New Stock Exchange, ZAR X
South Africa gave its first stock exchange operating licence in over 100 years to the ZAR X Stock Exchange, according to a report by Reuters.
ZAR X will compete against the Johannesburg Stock Exchange (JSE), and will begin trading Sept. 1.
The new exchange is South Africa’s second. JSE is Africa’s biggest and most liquid stock market.
“ZAR X plans to facilitate listings of restricted share schemes, currently trading over-the-counter, which the FSB ruled were in contravention of capital markets regulations,” according to the report.
“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.
“The current time frame is T+5 or five days between matched trade and settlement and clearing into an investor’s account. The ZAR X model is world leading and significantly reduces settlement risk as all transactions are pre-funded.”
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