4AX and JSE pledge to promote broader financial markets through cooperation
8 December 2016, Johannesburg – Following months of constructive engagement between 4 Africa Exchange (4AX) and the Johannesburg Stock Exchange (JSE), during which 4AX addressed the JSE’s issues of concern with 4AX’s exchange licence application, the JSE has now withdrawn its appeal on the award of the exchange licence to 4AX.
“We can confirm that in September 2016 the JSE lodged an application of appeal with the FSB to review the grounds on which the registrar granted our licence. We understood that the JSE, in part, had as its objective an interest in ensuring that the integrity of the financial markets continued to be upheld. 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, said: “At the time 4AX’s licence was granted, we felt that the exchange application process did not provide us with sufficient insight to enable us to determine if the objects of the Financial Markets Act (FMA) would be furthered by the grant of a licence to 4AX. However, after active and transparent engagements over these past few months we 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.”
“We understand that the JSE aimed to promote the continuation of the high quality of South Africa’s capital markets. Cooperation with other market infrastructures forms part of the conditions of our License Award and we believe this level of open engagement contributes to our own service offering and the promotion of the broader financial markets,” adds Mukaddam.
“We are very pleased to be part of the well-regulated markets and look forward to continuing discussions and collaboration with key bodies – all towards playing our role in taking South African economic transformation even further,” concludes Mukaddam.
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