Strate welcomes the news that its client – one of South Africa’s newest exchanges, 4 Africa Exchange (4AX) – announced its first two issuer listings on the Exchange – NWK Limited and NWK Holdings Limited.
NWK used to trade shares in the over-the-counter market. However, changes to financial market legislation and regulations meant that companies like NWK had to trade these shares on a formal market.
The changes to regulation was one of the reasons that led to the creation of 4AX, which intends to provide a formal trading platform for the over-the-counter equities market. The company has indicated that it would broaden this to medium-sized enterprises, real estate investment trusts, restricted schemes and special purpose vehicles given that its licence allows it to serve multiple asset classes.
At the beginning of September 2016, the Financial Services Board notified the market that it had granted 4AX an exchange licence. Strate was appointed by 4AX to provide it with central securities depository and settlement services. 4AX offers investors a T+3 settlement cycle, allowing trades matched on its system to be cleared and settled within three business days after the trade date.
Gregory Naicker, the General Manger Product Development at Strate, says, “Strate welcomes the news of 4AX’s inaugural listings and we would like to commend 4AX on their historic milestone.”
According to news sources, 4AX is targeting nine more companies across the construction, engineering, hospitality, property development and tourism, two of which are expected to be inward listings.
Below are images of Greg Naicker with the 4AX executive team, as well as the NWK executive teams: