The Financial Sector Conduct Authority (FSCA) on Tuesday announced that it has suspended the exchange licence of ZAR X PTY LTD (ZAR X).
The ZAR X suspension was effective from 16:00 on Friday, 20 August 2021, said the FSCA.
ZAR X was suspended for non-compliance with the Financial Markets Act, relating to the liquidity and capital adequacy requirements of an exchange.
Commenting on the move, FSCA Commissioner Unathi Kamlana said: “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.
“This is the cornerstone of our mandate as the FSCA.”
Kamlana said ZAR X was 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 either ZAR X rectifies its non-compliance with the capital adequacy requirements to the satisfaction of the FSCA and the PA, or a final decision is made on the cancellation of the exchange licence.
The FSCA said it intends to proceed, three months after the date of suspension, with the cancellation of ZAR X’s exchange licence should it fail to rectify its non-compliance.
ZAR X is a licensed stock exchange that uses disruptive fintech to create a more efficient market for all.
The company says 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,” says the company on its website.