Investing

A2X smashes trading record

A2X

A2X recorded a record month on A2X in terms of volume, value, and trade count, with R10.77 billion being transacted.

Kevin Brady, Sean Melnick, and Ashley Mendelowitz founded A2X in 2014 to compete against the Johannesburg Stock Exchange (JSE).

It debuted on 6 October 2017 with three listings – African Rainbow Capital, Peregrine Holdings, and Coronation Fund Managers with a combined market cap of R14 billion.

Since its humble beginnings, it has emerged as a notable contender in the financial market, presenting a viable alternative to the JSE.

A2X has grown to 128 instruments, including 27 top 40 constituents, with a combined market capitalisation of over R9.2 trillion.

There has been a flood of listings on A2X in recent months, including Astral Foods, Barloworld, PPC, WBHO, and Shoprite.

They join well-known companies already trading on the exchange, including AngloGold Ashanti, Exxaro, Discovery, Investec, Mr Price, Naspers, Nedbank, Remgro, Sanlam, Sasol, and Standard Bank.

A2X has shown rapid trading growth in 2023 due to its lower fees. Brady said South African investors could save millions using their exchange rather than the JSE.

The savings A2X brings to the industry are done in two ways:

  • Direct savings, where A2X’s fees on the cost of trade are about 50% lower than the JSE fees.
  • Indirect savings, whereby an investor can capture price improvement via transacting against the narrower bid/offer spreads quoted on the A2X platform.

A2X also attracts additional liquidity – the share volume available at the best bid and offer price – which is not available in other markets.

“Our analysis shows that brokers saved over R500,000 in fees, and shares listed on our market enjoyed both added liquidity and narrower spreads,” A2X said.

Latest A2X trading statistics

The charts below provide an overview of trading growth on A2X and share and broker activity in May 2023.

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