ZAR X applauds FSB Appeal Board for throwing out JSE application
ZAR X, South Africa’s new stock exchange, today (Wednesday, October 5) welcomed the decision of the FSB Appeal Board to dismiss the JSE’s urgent application for the suspension of the FSB decision to grant ZAR X a stock exchange licence.
The FSB granted ZAR X its licence to operate as a stock exchange on August 31, clearing the way for the launch of South Africa’s first new stock exchange in more than 100 years. ZAR X sets out a new vision for stock exchange operations by introducing a low-cost model that promotes financial inclusion for both investors and issuers.
ZAR X director Geoff Cook commented: “We welcome the FSB judgment. Deputy Chair of the Appeal Board Judge LTC Harms clearly states there is no evidence the JSE would suffer harm or prejudice. It is disappointing that the JSE has persisted in their strategy of pusuing technical legal processes in an attempt to delay the emergence of a genuine competitor.
“The JSE’s latest failed attempt questioned the process followed by the FSB and raised the spurious possibility of harm to investors and the country’s financial system. The suggestion that competition to the JSE is bad for investors and financial markets is not only baseless, it poses a risk to the hard-won reputation of South Africa’s robust and efficient financial system.
ZAR X pointed out that, among other things, the Appeal Board ruling had noted:
The application failed at the first hurdle as there was no allegation the JSE as appellant would suffer harm or prejudice.
On costs, if the judge had had the power he would have made an order in favour of ZAR X.
On the merits of the case, this was “not a matter where it can be said with confidence the appeal will succeed”.
The main JSE appeal against the award of a stock exchange licence to ZAR X will be heard at a future date. Hopefully, the judgment will discourage the continuation of the main appeal as well as any other party looking to employ a similar tactic.
Clear Distinction Communications
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