The Financial Sector Conduct Authority (FSCA) has suspended the exchange licence of ZAR X effective from 16:00 on Friday, 20 August 2021.
“We don’t take this regulatory action lightly, given its impact. Our view however, is that this is a necessary step to safeguard market integrity and the interest of issuers and the broader investing public,” FSCA Commissioner, Unathi Kamlana says.
“This is the cornerstone of our mandate as the FSCA” ZAR X is allowed to operate as an exchange to give effect to transactions in progress or otherwise not finalised at the date of suspension, but may not allow further trading or accept new issuers to its list.”
The suspension resulted from ZAR X’s non-compliance regarding the liquidity and capital adequacy requirements of an exchange
The exchange is allowed to operate as an exchange to give effect to transactions in progress or otherwise not finalised at the date of suspension, but may not allow further trading or accept new issuers to its list.
The suspension will remain effective until such time as the earlier of either of the following has taken place:
- ZAR X rectifies its noncompliance with the capital adequacy requirements to the satisfaction of the FSCA and the PA, in which case the suspension may be lifted; or
- The FSCA makes a final decision on the cancellation of ZAR X’s exchange licence.
The FSCA intends to proceed, three months after the cancellation of the exchange licence should ZA date of suspension RX fail to rectify its non, with the compliance with the capital adequacy requirements.
Also read: ZAR X plans to be SA’s second stock exchange