The Financial Service Board today approved a licence for a second stock market in South Africa.
ZAR X is a local company licenced to compete with the Johannesburg Stock Exchange (JSE).
We've identified a need in the market, a midcap space, for corporates who want to raise medium size amounts of money, around 200 million to a billion rand, and they are finding it difficult on the JCE.— Etienne Nel, CEO ZAR X
This is the market ZAR X is targeting. Nel says they are going live on 1 September.
But why do we need another stock exchange?
It speaks to a recall of a free market system.— Etienne Nel, CEO ZAR X
Nel says ZAR X will not be saddled with a legacy system and rules and regulations that drag them down.
ZAR X plans to facilitate listings of restricted share schemes, currently trading over-the-counter (OTC)