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ZarX Stock Exchange

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I want to meet this man face 2 face.

 

https://www.zarx.co.za/blog/detail/why-principles-are-the-short-road-to-financial-inclusion

 

As if he reads my brain.

 

Principles are funny things. They really do make things easier and better. As we will begin to see happening in the financial markets in South Africa.

 

I can state this with confidence because ZAR X is the catalyst for the improvement.

Why? Because we are the first stock exchange in this country to introduce a principles based listings regime. Not just in terms of principles based listing requirements, but by embedding a principles approach at all levels of strategy and operation.

 

For instance, we believe fundamentally in the principle that financial inclusion is an imperative for the financial sector and for society as a whole to prosper.

 

While seemingly altruistic, promoting financial inclusion is simply the right thing to do.

 

If people are excluded from the means to grow savings and investments, every South African will ultimately be socially, emotionally, and financially impoverished.

 

Until now, the financial markets have simply carried on doing things they way they’ve always been done, effectively entrenching exclusion. No-one could buy shares without being among a select few who have the means to invest in the markets.

 

Yes, indirectly, through life insurance and your pension, you could participate in the wealth of business. But without choice or control. That aside, the majority of South Africans have neither life insurance nor a pension.

 

It’s not that the markets cannot be opened up. It’s just that no-one has taken the initiative until now. As we always ask: Why not?

 

On principle, we are taking the initiative. We’re enhancing the efficiency and reducing the administrative burden of the way things are currently done by introducing a principles based listing regime. It slashes the cost of listing by 60% initially and 80% on an ongoing basis.

 

Which means that companies that, sensibly, would have refused to spend the time and money needed to meet rules based listing requirements now have a viable and compelling alternative new avenue for raising capital. They will grow and create jobs and, in the process, broaden the number of people who can afford to spend R1 000 creating an investment via share ownership.

 

A principles based approach is a self-fulfilling success story. Everyone wins.

 

Also, one of the founding elements of a principles based listing regime is that it focuses on integrity and expertise – the integrity and expertise of business owners and operators. So, our listing regime can rely on the Companies Act, among other relevant pieces of legislation, to ensure that issuers operate legitimately and ethically. We don’t need to impose further criteria or force companies to be audited by multiple entities.

 

By focusing on integrity and expertise, we are able to eliminate bloated and unnecessary regulatory structures out of which stock exchange related businesses make money at the expense of ordinary businesses and the average Joe. Funny thing, isn’t it, how principles and integrity actually make things more flexible, more affordable, and much less complex?

 

In some countries, like Britain, principles based financial operations are supported by legislation that goes back more then 10 years. We’re not there yet, in South Africa. But, by granting a licence to ZAR X, knowing that we would operate on principle at all levels, the Financial Services Board has taken a progressive and determined step out of the old restrictive, rules-based, economy-choking paradigm that has held sway for more than a century. If this is a sign of the approach that will be used in future, broad financial inclusion will very soon be a tangible reality.

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Hmmm ok, so EE has the option, they just not wanting to go in that direction currently, but rather focusing on their offshore initiative at the moment.

 

Probably a future venture in the works.

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PIC buys 25% stake in ZAR X

 

The Public Investment Corporation (PIC), one of Africa’s largest asset managers, has bought a 25% stake in ZAR X for an undisclosed amount. The equity injection would bolster ZAR X’s balance sheet and listings pipeline and enable it to better drive financial inclusion, CEO Etienne Nel said on Thursday.

 

"We were looking to bolster our BEE [black economic empowerment] credentials and went through an extensive process last year, talking to various strategic BEE partners. The additional benefits that the PIC brought to the table won the day," he said. ZAR X now had a 36% black shareholding.The exchange was already in discussions with the PIC around listing some of its considerable private equity assets, Nel said.

 

ZAR X was the first of four new stock exchanges to be launched in SA over the past 12 months, in what is the first challenge in decades to the JSE’s dominance. Its February debut was followed by the take-offs of 4 Africa Exchange, A2X Markets and Equity Express Securities Exchange.The PIC’s investment in ZAR X is a strong vote of confidence in the exchange and augurs well for its rivalsWhile few dispute that the new exchanges will promote competition and financial inclusion, they have got off to a slow start, primarily stocks listing that had traded over the counter before or in which trade was restricted. Only A2X, which provides a secondary listing platform for JSE-listed heavyweights, has managed to list large companies such as Coronation and Afrimat. In 2017, Patrice Motsepe’s African Rainbow Capital Investments bought a 25% stake in A2X.

 

The PIC’s investment in ZAR X is a strong vote of confidence in the exchange and augurs well for its rivals. It gave the PIC, which manages more than R1.9-trillion in assets, "an alternative platform from which to trade and on which to list", said corporate affairs head Deon Botha. It had chosen ZAR X over other new exchanges based on "the opportunity presented".

 

"This transaction will assist us in our resolve to bring about meaningful change in and transformation of the domestic

capital markets and overall financial services industry landscape in SA." The PIC holds a 9.86% stake in JSE Ltd on behalf of the Government Employees Pension Fund, Bloomberg data shows.  January had been ZAR X’s biggest in terms of trading values since its launch almost a year ago, said Nel. It had now signed up 10 stockbrokers, including one of SA’s largest prime brokers, Peregrine Securities. This would boost trading on the exchange, which had a market value of about R3.7bn. The listings pipeline was also looking healthier, as the malaise that gripped the market in 2017 began to lift after the ANC elective conference.

 

"Since the beginning of last week we’ve had inquiries for five new listings. The discourse with issuers is significantly more positive."

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Yo Phat,

 

https://twitter.com/ZARX_xchange/status/971850969267961856?s=19

 

===

We have a strong pipeline of listings, starting next month with a unique BEE share trading vehicle that only ZAR X technology and thought leadership could enable. We're rolling out new investment products this year. Eg of both is Bayhill, creating access through Zar X.

 

 

Sent from my SM-G920F using Tapatalk

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I am really interested to see what companies they will list.

 

Do they accept dual listings, if they do I would find it interesting to see how they will manage the pricing data since ZARX promised free real-time data whilst the JSE made a business out of selling live and delayed data access?

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I am really interested to see what companies they will list.

 

Do they accept dual listings, if they do I would find it interesting to see how they will manage the pricing data since ZARX promised free real-time data whilst the JSE made a business out of selling live and delayed data access?

 

I'm sure I read somewhere that Sanlam was planning a dual listing. Will do some googling to see if I can find the article.

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