A2X Markets today welcomed the Competition Commission’s decision to recommend that allegations of anti-competitive behaviour by the JSE be referred to the Competition Tribunal, following a three-year industry-wide investigation.
For more than a century, South Africa’s equity market has been dominated by a single player. The numbers reveal the consequences, which include fewer listings, stagnant liquidity, and rising costs that deter both issuers and investors, according to Kevin Brady, CEO of A2X.
Said Brady, “We believe this referral validates what we have been saying: that South Africa’s financial markets have been held back by the JSE’s anti-competitive practices that ultimately harm investors, listed companies and competitor exchanges. Our market must embrace competition to create the dynamic capital market that South Africa needs.”
International experience shows that when regulators enable fair, open competition between exchanges, costs drop, innovation and liquidity grow and more companies list. Jurisdictions such as Europe, Australia, and India have all benefited from introducing competitive exchange frameworks.
“A2X has seen several tactics by the JSE, including their arguments that competition introduces systemic risk and that new players are inadequately regulated. These arguments ring hollow when viewed against international experience and A2X’s eight-year track record,” says Brady.
“We are hopeful that with new leadership at the JSE, there will be a shared commitment to growing South Africa’s capital markets. The Competition Commission has rightly identified that market growth requires fair competition—something that benefits all investors, listed companies, and ultimately the broader South African economy.”
A2X is a fully licensed and regulated exchange, operating under the same rigorous oversight as any market infrastructure.
A2X significantly lowers the end-to-end cost of transactions, with savings of over 40% typically being captured by market participants. These savings flow through to pension funds, asset managers and ultimately the retirement savings of millions of South Africans.