ZAR X is a licensed stock exchange that uses disruptive fintech to create a more efficient market for all. The right technology can remove barriers, reduce costs, save time, all while creating new opportunities. At ZAR X, we develop technology that’s intuitive, easy-to-use, and visually engaging to replace manual processes that hinder efficiency and performance. We have pioneered T+0 (Realtime) settlement in South Africa. At ZAR X, transparency is more than just a buzzword. It is a vital part of being a participant in today’s capital market space where customers want to know how their orders are handled and how their information is protected. ZAR X has spent significant time and resources implementing a global technology solution to enhance the level of transparency and control that our Market Participants and Investors have when interacting with us. Through this work, we know that transparency is not simply a ‘check the box’ exercise to set and forget. It is a continual process of assuring customers that their need for safe and efficient execution is being met as markets evolve.
Trading is done on a prefunded basis for buyers and seller’s shareholding is pre-cleared prior to conclusion of the transaction.
Custody of securities is at a Central Securities Depository (CSD) in a Segregated Depository Account (SDA) as contemplated in the Financial Markets Act of 2012 (FMA) with a Central Securities Depository Participant (CSDP) facilitating clearing.
Zero safe custody fees afford people in the unbanked sector the opportunity to grow their investment base in a cost effective manner. They only pay fees when they actually transact. The thinking behind this pricing model is that there will only be a cost in the event that an investor wishes to transact which would imply that some amount of effort was involved in concluding the transaction from a regulatory certainty point of view as well as settlement and clearing.
Our market is transparent for all stakeholders to have access to market information in a cost effective manner.
No high frequency trading, derivatives or short selling will be allowed. ZAR X has deliberately structured fees in such a manner that we wish to encourage investing rather than trading.
First exchange in Africa on T+0 settlement cycle. This translates to the immediate flow of funds and shares.
ZAR X is regulated by the Financial Sector Conduct Authority. It has its own separate board of directors that complies with all independence and corporate governance requirements, as well as its own, separate executive committee, comprising experienced bankers and stockbrokers.
The lack of standardisation between exchanges makes dual listing compliance and synchronisation difficult, ZAR X aims to increase cooperation between other exchanges particularly in Africa.