The Financial Sector Council Authority (FSCA) has, in terms of section 60(1) of the Financial Markets Act (FMA), suspended the exchange licence of ZAR X PTY LTD (ZAR X) effective from 16:00 on Friday 20 August 2021.
This comes as a result of ZAR X’s failure to comply with section 8(1)(a) of the Financial Markets Act (FMA), read with Regulation 8 and 43(2) of the FMA Regulations, which relate to the liquidity and capital adequacy requirements of an exchange.
“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” said Unathi Kamlana – FSCA Commissioner
ZARX may function as an exchange for the purpose of transactions that are in progress but may not issue further trading or accept new issues to its list
The suspension will remain effective until such time as the earlier of either of the following has taken place:
- ZAR X rectifies its non-compliance with the capital adequacy requirements to the satisfaction of the FSCA and the PA, in which case the suspension may be lifted; or
- The FSCA makes a final decision on the cancellation of ZAR X’s exchange licence.
The FSCA intends to proceed, three months after the date of suspension, with the cancellation of ZARX’s exchange licence should ZARX fail to rectify its non-compliance with the capital adequacy requirements. Click here for a full official media statement from the FSCA.
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