The secondary listing process is well established both in South Africa and internationally. Six of the largest 10 companies listed on the JSE by market-cap are secondary listings and 18 of South Africa’s top companies have secondary listings in Namibia.

The alternative trading venue model is an internationally accepted model, specifically in Europe and the USA. According to the OECD Business and Finance Outlook 2016 – Changing Business Models of Stock Exchanges and Stock Market Fragmentation – there are 12 stock exchanges and 44 alternative trading venues in the USA. The report also states that in January 2016 there were 103 regulated exchanges and 151 alternative trading venues in Europe.

There are no additional regulatory obligations for companies with a secondary listing on A2X. Complying with the primary market obligations will amount to A2X compliance.

Listing on A2X has no impact on the company’s share register which continues to be maintained by the Transfer Secretaries and Strate, the South African CSD. Corporate actions continue to be handled through the primary market with no action required on A2X. Continuing obligations on A2X are aligned with the primary market. There is also no impact to Investors with corporate actions continuing to be dealt with by their CSD participant or broker. There should be no cost implications from advisors as there is no additional work required. Minor impact on sponsor in that they will be required to send company announcements to both the primary and secondary markets therefore no increased cost expected.

International research is compelling – competition leads to improved liquidity, market quality and improved price formulation.

A2X undertakes international best practice cross market surveillance – a first in South Africa – surveillance system provided by our technology partner, Aquis Exchange. Aquis also operate and provide cross market surveillance across 14 European markets.


A2X has fitted directly into the financial markets eco system with settlement continuing to take place through Strate and the CSDPs with the same settlement cycle and settlement processes – this is a tried and tested process in South Africa. Strate and the CSDPs understand the implications of cross market settlements and their systems can accommodate this. A2X has procedures in place, which are covered by A2Xs Rules and Directives to manage the settlement of and avoid failed trades. In the unlikely event that a failed trade occurs, A2X will seek to limit any potential losses to our clients and to place the client in the same position as if the original trade settled.

A2X is offering a reduction in trading fees in the region of 40%

International research and experience is compelling. Competition has been shown to lead to the reduction in both direct and indirect costs for participants The cost of connecting to two venues is for the brokers account and will be more than off-set against the fee reductions realised across two venues operating in a competitive environment

As noted, international research is compelling – competition leads to improved liquidity, market quality and improved price formulation which is beneficial to all shareholders. Focus also has to be placed on best execution for the clients, your shareholders. MiFID II has recently been introduced in Europe which requires that brokers obtain best execution across electronic crossing networks and multiple trading venues. So, foreigners trading into the South African market are expecting the same standard of execution from the brokers. This requirement is also applicable to local clients.