22 July 2015
A2X looks to bring choice and a fresh approach to the SA equities market
With the vision to provide a new exchange in the same mould as the European Multilateral Trading Facility, A2X has applied to the Financial Services Board (FSB)for the granting of a licence to operate an exchange for the trading of cash equities.
The application was made in May 2015 – and it is anticipated that the new exchange called A2X Markets will be established by the middle of 2016.
CEO of A2X, Kevin Brady said, “It’s about providing an alternative equities trading platform, offering outstanding performance and reduced transaction costs. With A2X, there will be a choice of stock exchanges.”
A2X will clear all trades executed on it, overseeing and providing assurance of settlement using Strate as its CSD – and to protect investors, A2X will be using top-end surveillance technology compliant with the Financial Conduct Authority in the UK.
A2X has selected Aquis Exchange (Aquis) as its technology partner, from which it intends licensing industry-leading matching engine, surveillance and clearing technology.
Kevin Brady said “A2X is excited to have been able to partner with a company of Aquis’ pedigree. Aquis brings extensive exchange experience, innovative thinking, world leading exchange technology and importantly, shares our entrepreneurial culture and approach. We look forward to a long and rewarding relationship with Aquis as we introduce choice and a fresh approach to the SA market place.”
Aquis operates a pan-European cash equities market and is regulated by the UK’s Financial Conduct Authority. Aquis was founded, and is led by Alasdair Haynes, previously CEO of Chi-X Europe.
Alasdair Haynes said “This is a major development for Aquis. Aquis has developed market leading exchange technology systems which has enabled us to enter the software licensing market. We are delighted that A2X has chosen to partner with Aquis. A2X has recruited a first class team of experienced market professionals and with strong financial backing and with the support of Aquis technology A2X will provide the market in South Africa with a realistic alternative to the JSE for the first time.”
Funding is being provided by a consortium of private individuals led by Ashley Mendelowitz and Sean Melnick. Ashley is also chairman of A2X.
A2X is positively engaged with the FSB in the processing of the exchange license application and is hopeful a decision will be reached by year end.
For more information, please contact Kevin Brady at kevin.brady@a2x.co.za.