The Johannesburg Stock Exchange (JSE) was established on November 8, 1887, which was during the first South African gold rush. They joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s. The JSE demutualized and listed on its own exchange in 2005. It is the largest stock exchange in Africa by market capitalization.
In 2003, they launched an alternative exchange, AltX, for small and mid-sized listings, followed by the Yield X for interest rate and currency instruments. The JSE then acquired the South African Futures Exchange (SAFEX) in 2001 and the Bond Exchange of South Africa (BESA) in 2009. Today, it provides five financial markets for equities and bond trading as well as equity derivatives, agricultural derivatives and interest rate instruments.
A2X Markets Limited (A2X) was granted an Exchange License with an infrastructure to clear by the Financial Services Board of South Africa (FSB). This is a pivotal development for A2X and a key milestone in its drive to bring real choice to participants in the equity capital market.
All trades executed on A2X, will be cleared through its clearing engine, A2X Clear, with settlement taking place via STRATE and its participants.
A2X aims to offer a fully functional test environment by July 2017 and to go-live in the final quarter of 2017.
4AX, founded in 2014, was established to form a well-regulated exchange alternative for issuers and the South African capital markets, with the aim of meeting the needs of issuers and investors who are not served by current exchanges or whose needs may be better served through a different exchange model.
4AX formally commenced operations on March 1, 2017 and initially seeked to attract equity listings from qualifying issuers with a focus on companies with a market capitalization of up to R8 billion. A key target market for 4AX will also be the listing of various products, especially ETF’s (which is supported by the 4AX model due to its elimination of minimum fees and introduction of the lowest cost retail distribution platform) as well as the listing of various debt instruments and structured notes.
ZAR X is a stock exchange that uses disruptive fintech to create a more efficient market. They believe that the right technology can remove barriers, reduce costs, save time, all while creating new opportunities. ZAR X has developed technology that’s intuitive, easy-to-use and visually engaging to replace manual processes that hinder efficiency and performance.
On the September 12, 2017, the Financial Services Board granted Equity Express Securities Exchange (Pty) Limited (EESE) an operational stock exchange license. EESE is the first independent black owned equity exchange in South Africa.