A2X CEO reflects on the last three years, COVID-19 & outlook on company listings

South African stock exchange A2X has recently reached a significant milestone, with 37 securities listed and a market cap of over R2.1 trillion. Three years after its launch, A2X has made significant strides in the market, attracting top brokers and gaining traction in the industry. In a recent interview with CNBC Africa, Kevin Brady, CEO of A2X, reflected on the company's journey, the impact of COVID-19, and the future outlook for the stock exchange. Brady acknowledged the challenges faced over the past three years but expressed satisfaction with the progress made by A2X. Despite initial targets not being fully met, the CEO remains optimistic about the company's current position and future prospects. He credited the resilience of the team in overcoming hurdles and adapting to the evolving landscape of the market. The COVID-19 crisis presented unique challenges for businesses worldwide, but A2X was able to operate seamlessly due to its remote capabilities. While the rate of corporate listings slowed during the pandemic, Brady anticipates an accelerated adoption rate in the coming year as companies pivot towards recovery. In terms of listing activities, Brady confirmed that the company expects some listings to take place in 2020, with a strong pipeline heading into 2021. Despite the economic uncertainty caused by the pandemic, Brady remains confident in the potential for growth and expansion in the near future. When asked about potential delistings due to budget constraints faced by listed entities, Brady emphasized the importance of providing a cost-effective trading venue for investors. A2X's model focuses on reducing transaction costs through the use of modern technology, resulting in savings for both companies and shareholders. By offering a secondary listing option with no additional costs or risks, A2X aims to enhance market liquidity and efficiency. Looking ahead, Brady highlighted the opportunities presented by digital adoption and technological advancements. The company is focused on enhancing its digital platform and post-trade systems to streamline the trading process for brokers. By leveraging digital solutions, A2X aims to attract a broader range of market participants and drive further growth in the market. As A2X continues to navigate the challenges of the current environment, Brady remains optimistic about the company's future prospects. With a strategic focus on innovation and efficiency, A2X is poised to play a significant role in the South African market and deliver value to investors and stakeholders alike.