Africa Business Communities
[South Africa] 4AX  moves to shortened trading times and settlement cycle

[South Africa] 4AX moves to shortened trading times and settlement cycle

4 Africa Exchange Proprietary Limited (4AX) confirms that the exchange is moving to a shortened trading times (T+0) settlement cycle, further strengthening the 4AX value proposition.

Anthony van Eeden, COO for 4AX, said: "4AX adopted a 3-day settlement cycle when we initiated operations fourteen months ago. However, because we operate with a pre-validated and pre-funded model, we are able to move to a shortened settlement cycle or T + 0. "

4AX has been created to meet the needs of a specific target market or small to medium sized companies that would appeal to investors who appreciate that this is the future of South Africa and the African continent.

To provide world class products and services the exchange was built on the foundation of; clear and transparent listing requirements, offering a unique exchange platform that is built on innovative technology and principles of governance and the removal of barriers to investing.

"We are in tune with our stakeholder base - and are reviewing best practice in terms of stock exchange operations - as we subscribe to the philosophy of continuous improvement. The move to a shortened settlement cycle makes investing on our exchange platform more attractive for all market participants, as it further reduces the risk of post trade settlement, "added from Eden.

The benefits of moving to T + 0 settlement cycle include:

• Further mitigation of settlement risk.

• Investors will have to buy and sell their securities at the end of the day; this will free up funds to take advantage of opportunities on 4AX in a timeous manner.

• Institutional investors will not be required to commit funds for investments in companies listed on 4AX.

4AX has engaged with all the market participants and the developments and innovation have been positively received.

“The exchange has also amended its trading hours. The extended hours allow investors and shareholders to trade in a longer window which should increase the liquidity and visibility of the companies listed on 4AX – though stakeholders are not required to make any changes and the modus operandi to trade remains the same,” concluded van Eden.

4AX exchange trading hours are now 09h00 – 16h00, from the original 10h00 – 15h00.



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