A2X Markets, a South African startup stock exchange, announced on Wednesday that it has received an undisclosed amount from Absa, a Johannesburg-based bank.
The investment came as a part of the stock exchange’s efforts initiated in late last year to raise capital.
“The team at Absa CIB are always looking for innovative ways to save money for our clients and support the industry in which we operate,” Quintus Kilbourn, Absa’s head of equities said, mentioning the investment. “As a broker, we believe in an efficient and progressive marketplace and our investment in A2X shows our support for this.”
Disrupting the market of traditional exchanges
Launched its services in October 2017, A2X regulated under the Financial Sector Conduct Authority and the Prudential Authority (SARB) in terms of the South African Financial Markets Act.
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It has embraced new technologies and modern business models to offer trading services at a reduced cost. To date, the exchange lists many top South African companies, including eight Top40 constituents, three Absa precious metal ETFs and two Investec ETNs.
The companies listed on the exchange vary from the sectors including mining, media, banking, retail, FMCG, financial services, insurance, healthcare, and telecommunications, A2X detailed.
The exchange has eight approved brokers for facilitating services to the traders.
“Absa’s investment in A2X is a vote of confidence for what we are building in South Africa. Effective competition in an industry drives market efficiency and this benefits all users, including individual investors and pensioners. By offering lower costs, we are able to create a better market to grow the overall industry,” Kevin Brady, CEO at A2X, added.