South Africa grants first bourse licence in over 100 years

An electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg, on March 14, 2016.
An electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg, on March 14, 2016.PHOTO: SIPHIWE SIBEKO

JOHANNESBURG (Reuters) - South Africa has issued its first stock exchange operating licence in more than 100 years, paving the way for a local company to compete with the Johannesburg Stock Exchange (JSE).

ZAR X Stock Exchange said on Wednesday (March 30) it would start operating in September after securing approval from the Financial Service Board (FSB).

The bourse will be the second exchange after the more than a century old JSE, Africa's biggest and most liquid stock market.

ZAR X plans to facilitate listings of restricted share schemes, currently trading over-the-counter (OTC), which the FSB ruled were in contravention of capital markets regulations.