A2X lists exchange traded notes - in a first
JOHANNESBURG - Investec Bank, while retaining two of its market-leading exchange traded notes (ETNs) primary listings on the JSE, had now secondary listed them on A2X Markets, it said on Thursday.
Tinus Rautenbach, the head of equities at Investec Corporate and Institutional Banking (CIB) division said, “We are delighted to be the first ETN issuer to secondary list our products on A2X.
Passive products such as ETNs are particularly cost sensitive as they track an underlying index consisting of a basket of securities. Our ETNs are market leaders as they have a zero total expense ratio. Making them available to investors on the A2X low-cost platform extends our value proposition to investors offering innovative and cost-effective products.”
A2X was granted a licence extension earlier this year by the Financial Sector Conduct Authority and the South African Reserve Bank’s Prudential Authority to include the secondary listing and trade of ETFs and ETNs.
A2X chief executive Kevin Brady said, “Exchange traded products have experienced exponential growth both locally and internationally and we are excited to be able to offer secondary listings. "
He said A2X B had been able to cut the end-to-end cost of transacting on an exchange by some 50 percent.
"Reducing friction costs is proven to drive a better-quality market as measured by increased liquidity and narrower spreads. We look forward to demonstrating this to Investec CIB.”