BUSINESS OF SHARE-TRADING

PLATFORM LISTS ETFS AND ETNS

ALTERNATIVE stock exchange A2X has been authorised to secondarylist exchange traded funds (ETFS) and exchange traded notes (ETNS) on its platform. “Our application to extend our licence to include the secondary listing and trading of ETFS and ETNS, a high-growth segment of the market, has been approved by our dual regulators, the Financial Sector Conduct Authority and the Prudential Authority,” says Kevin Brady, the chief executive of A2X. Issuers now have an additional venue on which to list their funds and notes for trade.

This comes at no cost, risk or additional regulation for the issuers, while providing the underlying investors with a low-cost alternative platform on which to transact. By using the latest exchange technology, A2X says it is able to pass on efficiency gains in the form of large fee reductions. The end-to-end cost of a trade on A2X is about 50% cheaper than current rates in South Africa.