ZAR X granted stock exchange licence

In a significant development in the South African capital markets landscape, ZAR X, the newest affordable stock exchange, has been granted a license to operate a stock exchange by the Financial Services Board. This marks the beginning of a new era in the financial markets of South Africa. Chief Executive Officer of ZAR X, Etienne Nel, joined CNBC Africa to shed light on the implications of this major milestone. Etienne Nel expressed gratitude for the opportunity to discuss the license approval. He emphasized the significance of the final license and outlined the conditions attached to it. ZAR X will not be trading in derivatives or allowing short selling, staying true to their initial application. This restriction ensures a focus on a full multi-counter stock exchange license. While ZAR X's systems are up and running, they are in the process of vetting market participants to ensure a secure trading environment. Nel highlighted the importance of building trust with potential investors, given ZAR X is a new player in the market. The conversations are underway, and the feedback from the market has been positive, signaling a promising start for ZAR X. The ZAR X listing regime adopts a principles-based approach, leveraging the new Companies Act for guidance. This simplifies the listing process for companies, with a focus on R for S approved financials. By encouraging auditors to vet financials, ZAR X aims to streamline the listing process and reduce unnecessary regulatory burdens. Looking ahead, the first few listings on ZAR X are anticipated to be companies with solid track records. Nel emphasized the importance of mitigating risks associated with listing failures by focusing on established companies. Companies like Senwes and Senwes Belacon have already committed to listing on ZAR X, showcasing the exchange's appeal to companies with substantial balance sheets and strong profit numbers. The ZAR X license approval paves the way for increased financial inclusivity and streamlined listing processes in the South African capital markets. With a principles-based approach and a focus on reputable listings, ZAR X is set to carve a niche for itself in the market, attracting established companies looking for a credible listing platform.