JOHANNESBURG – THE Johannesburg Stock Exchange (JSE) has withdrawn its appeal on the awarding of an exchange licence to between 4 Africa Exchange (AX), paving way for a second stock exchange in South Africa.
JSE had in September lodged an appeal with the Financial Services Board (FSB) over the awarding of the licence to 4AX but they announced on Monday the appeal had been withdrawn following “constructive engagement.”
During the engagements, 4AX said it had addressed the JSE’s issues of concern.
“As a responsible company ourselves, we recognised this as an opportunity to engage with the JSE, to share insights on our licence application and directly address any concerns the JSE had,” says Fay Mukaddam, Chief Executive Officer of 4AX.
Donna Nemer, Director of Capital Markets at the JSE, says at the at the time 4AX’s licence was granted, JSE felt the exchange application process did not provide them with sufficient insight to enable them determine if the objects of the Financial Markets Act (FMA) would be furthered by the grant of a licence to 4AX.
However, Nemer says, after “active and transparent engagements” over the past few months they have a better understanding of 4AX’s market approach, which will increase the diversity of financial markets in South Africa.
“This is what led us to withdraw our appeal,” says Nemer.
4AX and JSE pledged to promote broader financial markets through cooperation.
The new stock exchange will be the JSE’s first competition in its 120 years.
– CAJ News