A2X celebrates R2 trillion market cap and R2 billion in trades in just two years

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A2X celebrates R2 trillion market cap and R2 billion in trades in just two years

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Published Date: 2019-11-14 | Source: INCE|Community | Author: A2X Markets

A2X celebrates R2 trillion market cap and R2 billion in trades in just two years

South African stock exchange A2X Markets launched on 6 October 2017 with three listings and four of the industry's leading brokers on board. After just two years, A2X boasts a combined market cap of about R2 trillion with nine approved brokers, including five of the six largest brokers in South Africa.

Real estate investment trust, Fairvest Property Holdings, listed on A2X on 31 October, bringing the number of listings on the exchange to 32. It was also recently named best new stock exchange in Africa in the 2019 Global Banking & Finance Awards.

Kevin Brady, CEO of A2X said, "We are very excited about how the business has developed over the past two years. Starting an exchange to compete with an incumbent that has been a monopoly for over 130 years was never going to be easy but through the use of technology, an experienced team, support from many industry players and perseverance, we have managed to overcome the many barriers to entry. Testament to this is that from inception to the end of October, we had recorded over 29 000 trades with a combined value of some R2 billion."

Brady says that one of the major challenges that A2X has faced is broker infrastructure, which was inadequate for a multi-venue environment. "Integrating into legacy systems geared for a single exchange environment is challenging. However, we are pleased to report that many brokers are re-engineering their systems as they see the value of doing so and the problems of being tied to only one exchange."

To help overcome many of the infrastructure obstacles, A2X has a joint venture with a local tech firm to develop a post trade system. This will make it both cost effective and easy to trade client orders across both markets. The system is being rolled out to select brokers and is expected to be in full production by the first quarter of next year.

A2X offers an alternative platform for companies or issuers of exchange traded products to secondary list their shares or units for trade. There is no cost, risk or additional regulation to do so.

After two years of operation, the savings of an alternative low-cost platform are clear. Brokers can extract savings of 50% on exchange fees and lower friction costs drive a better-quality market as measured by narrower spreads and increasing liquidity. These savings flow to the brokers and investors and are estimated to be upward of R1.2 billion per year.

Brady continues, "There is no doubt that the industry is increasingly seeing the benefits of having choice to trade across markets. In October, A2X recorded its seventh record month for the year."

"Trading on A2X has benefits for issuers  as well as brokers. A secondary listing on A2X complements an issuer's primary listing. It provides investors with a choice of venue on which to transact and a lower cost venue. Many companies are going the extra mile for their shareholders and also support the development of a more progressive and competitive market place in South Africa."

"The pipeline of potential companies listing is strong and we are pleased at the high quality, high profile companies which have and are considering listing. We were clear from inception that the A2X model aligns with the objective of growing and improving the overall market in South Africa - lowering costs, improving liquidity and being both innovative and responsive to market needs," he says.

Brady concludes: In terms of the focus for the next two years, A2X will grow is product range, continue to offer investors an alternative low-cost venue on which to transact while progressing capital markets in South Africa."

A2X has listings from many sectors, including media, mining, banking, property, retail, pharmaceutical, FMCG, financial services, healthcare, insurance, mining, telecommunications, ETFs and ETNs. 

A2X is regulated by the Financial Sector Conduct Authority and the SARB Prudential Authority in terms of the Financial Markets Act.

About A2X

A2X Markets (A2X) is a South African stock exchange playing an integral part in the progression of the South African marketplace. A2X began trading on 6 October 2017. 

A2X Markets was named Best New Stock Exchange Africa 2019 in the 2019 Global Banking & Finance Awards®. An experienced team, advanced technology and agile environment enable A2X to provide an efficient and cost-effective trading venue to secondary list and trade shares, exchange traded products.

A2X has appointed Strate as its central securities depository and operates within the proven and reliable South African settlement structure and uses technology developed by the UK's Aquis Technologies, which includes proven exchange matching and surveillance systems and a clearing platform custom-built for A2X. The end-to-end costs of transacting are some 50% lower than current trading costs in South Africa.

Securities available for trade on A2X

Security Code

Name

Security Type

Market Cap

ACG

Anchor Group Limited

Ordinary Shares

R896,939,452

AFT

Afrimat Limited

Ordinary Shares

R4,651,730,518

AIL

African Rainbow Cap Inv

Ordinary Shares

R4,598,209,942

APN

Aspen Pharmacare Hldgs

Ordinary Shares

R51,670,314,441

ARI

African Rainbow Min Ltd

Ordinary Shares

R33,545,457,756

ASC

Ascendis Health Ltd

Ordinary Shares

R1,620,145,564

AVI

AVI Ltd

Ordinary Shares

R29,177,557,743

CML

Coronation Fund Managers

Ordinary Shares

R14,890,947,772

EQU

Equites Prop Fund Ltd

REIT

R11,449,211,730

FVT

Fairvest Property Hldgs

REIT

R1,934,438,338

GLD

NewGold ETF

Exchange Traded Fund

R13,961,134,854

GRT

Growthpoint Prop Ltd

REIT

R69,789,441,460

HUG

Huge Group Ltd

Ordinary Shares

R807,884,554

IVT

Invicta Holdings Ltd

Ordinary Shares

R2,233,906,655

IVTP

Invicta Hldgs Ltd pref

Preference Share

R601,500,000

MRP

Mr Price Group Ltd

Ordinary Shares

R41,471,757,594

NGPLD

NewGold Palladium ETF

Exchange Traded Fund

R937,460,356

NGPLT

NewGold Platinum ETF

Exchange Traded Fund

R13,433,315,000

NPN

Naspers Ltd -N-

Ordinary Shares

R956,035,690,450

NRP

NEPI Rockcastle Plc

REIT

R76,774,041,728

PGR

Peregrine Holdings

Ordinary Shares

R4,109,509,391

SBK

Standard Bank Group Ltd

Ordinary Shares

R286,064,020,667

SBPP

Standard Bank Group Pref

Preference Shares

R4,622,701,138

SLM

Sanlam Limited

Ordinary Shares

R192,200,586,615

SNT

Santam Limited

Ordinary Shares

R33,903,899,678

SWXTR2

IBSWX40TR2ETNOCT2022

Exchange Traded Note

R915,050,000

SYG

Sygnia Limited

Ordinary Shares

R1,370,185,623

TCP

Transaction Capital Ltd

Ordinary Shares

R13,656,490,698

THA

Tharisa plc

Ordinary Shares

R5,292,000,000

TOPTR2

IBTOP40TR2ETNOCT22

Exchange Traded Note

R968,490,000

VUN

Vunani Ltd

Ordinary Shares

R402,889,788

ZCL

Zarclear Holdings Ltd

Ordinary Shares

R825,139,790

R1,874,812,049,296



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