FSCA suspends ZAR X’s exchange licence

The Monetary Sector Conduct Authority (FSCA) has suspended the trade licence of ZAR X, efficient from 16:00 on August 20, 2021.

In a press release issued on Monday, the authority mentioned this follows ZAR X’s non-compliance with the Monetary Markets Act and FMA laws, regarding an trade’s liquidity and capital adequacy necessities.

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“Part 60(1) of the FMA supplies that the FSCA could, with the concurrence of the Prudential Authority (PA) and the South African Reserve Financial institution (Sarb) and by discover to a market infrastructure, droop an trade licence, for the interval specified within the discover, within the circumstances contemplated in that part. In compliance with the part, the suspension was effected with the concurrence of the PA and the Sarb.”

The suspension stays efficient till both ZAR X rectifies its non-compliance with capital adequacy necessities to the FSCA and the PA’s satisfaction, or the FSCA makes a remaining choice on the cancellation of its trade licence.

ZAR X should instantly inform all affected individuals, together with issuers with listed securities on its trade; authorised customers of its trade; buyers; appointed CSDs; and all its stakeholders that its licence has been suspended. It should additionally present the FSCA with weekly progress studies.

FSCA commissioner Unathi Kamlana says: “We don’t take this regulatory motion frivolously, given its impression. Our view nonetheless, is that it is a obligatory step to safeguard market integrity and the curiosity of issuers and the broader investing public.”

ZAR X could function as an trade “to provide impact to transactions in progress or in any other case not finalised on the date of suspension, however could not permit additional buying and selling or settle for new issuers to its listing,” states the FSCA.

The authority intends to proceed with cancelling ZAR X’s trade licence if it doesn’t rectify its non-compliance with the capital adequacy necessities inside three months of the date of suspension.

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