JSE’s ri­val A2X lands weighty pair

Business Day - - FRONT PAGE - War­ren Thomp­son Fi­nan­cial Ser­vices Writer thomp­sonw@busi­nesslive.co.za

The ri­val ex­change to the JSE, A2X, has added Stan­dard Bank and con­sumer group AVI to its port­fo­lio, tak­ing the num­ber of com­pa­nies listed on its plat­form to 13.

The ri­val ex­change to the JSE, A2X, has added Stan­dard Bank and con­sumer group AVI to its port­fo­lio, tak­ing the to­tal num­ber of com­pa­nies listed on its plat­form to 13.

“The in­clu­sion of Stan­dard Bank’s or­di­nary and pref­er­ence shares for trade on our ex­change from Thurs­day next week, to­gether with AVI, ef­fec­tively dou­bles the size of the value of com­pa­nies on our mar­ket from ap­prox­i­mately R300bn to R600bn,” said Kevin Brady, the CEO of A2X.

Be­sides be­ing the sec­ond­largest fi­nan­cial ser­vices com­pany on the JSE, what is even more sig­nif­i­cant for the start-up ex­change is that Stan­dard Bank was the sec­ond-most traded share on the JSE by value for the 12 months end­ing Oc­to­ber, ac­cord­ing to Brady.

“We feel we are now at a tip­ping point. We think this sends a very strong mes­sage to other com­pa­nies, be­cause if the likes of Stan­dard Bank see fit to list with us, this will give a great deal of other com­pa­nies the con­fi­dence to do the same.”

To make list­ing on A2X easy for JSE-listed firms, the “du­al­listed” prin­ci­ple ap­plies. To list on A2X merely re­quires the con­sent of the com­pany whose list­ing is in good stand­ing on the JSE, in the same way as con­sent from a com­pany with a pri­mary list­ing in Lon­don would pro­vide con­sent to list on the JSE.

IF THE LIKES OF STAN­DARD BANK SEE FIT TO LIST WITH US, THIS WILL GIVE OTHER COM­PA­NIES THE CON­FI­DENCE TO DO THE SAME

Brady said the sec­ond wave of the tip­ping point will be when large in­vest­ment man­agers and bro­kers be­gin in­vest­ing in sys­tems that will al­low them to trade on A2X. “As we add more com­pa­nies to our mar­ket, it makes the eco­nomic de­ci­sion for the bro­kers to ac­cel­er­ate in­vest­ment in up­grad­ing their pre- and post-trade sys­tems to en­able them to trade across mar­kets more com­pelling.”

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