South Africa has granted its first stock exchange operating licence in over 100 years to the ZAR X Stock Exchange, according to a report by Reuters.
The ZAR X will compete against the Johannesburg Stock Exchange (JSE), and will begin trading on 1 September.
The new exchange is South Africa’s second, with the JSE Africa’s biggest and most liquid stock market, stated the report.
“ZAR X plans to facilitate listings of restricted share schemes, currently trading over-the-counter, which the FSB ruled were in contravention of capital markets regulations,” stated the report.
“Investors are able to trade securities across a state-of-the-art technology platform that permits transactions to be executed on a T+0 or same day settlement of trades,” said ZAR X.
“The current time frame is T+5 or five days between matched trade and settlement and clearing into an investor’s account. The ZAR X model is world leading and significantly reduces settlement risk as all transactions are pre-funded.”