The 4AX trading platform is unique and disruptive in the South African exchange environment. Without having to maintain and update legacy systems, 4AX can adapt and move quickly to meet market demand while driving down costs of trading. This contributes to making the capital market accessible to SMEs and a broader base of retail investors.
The 4AX exchange license covers the following securities:
+ entire class or classes of an Issuer’s ordinary shares;
+ all classes of preferential shares;
+ commercial paper; and
+ fixed or floating rate interest instruments.
Orders and Matching
Orders are input into 4AX by an Authorised User and pre-validated by the 4AX Registry
+ Buys are pre-validated by confirming that the buyer has the require cash to effect the trade and is able to own the security; and
+ Sells are pre-validated by confirming that the seller owns the shares and is able to sell them.
The 4AX system matches orders based on a price and time priority.
Clearing is done electronically by 4AX to confirm that a particular trade is permitted. Cleared trades are then sent for settlement to Strate.
4AX has imbedded scanning technology that pro-actively monitors for market abuse and non-compliance with 4AX Listing Requirements (e.g. trading with oneself, closed period director dealings etc.). The CRO model allows for the real-time monitoring of transactions.
The Process Flow