Absa is first to secondary list ETFs on A2X

By Janice Roberts
Editor

 

Absa Corporate and Investment Bank (Absa CIB) are to secondary list three of its market-leading metal exchange traded funds (ETFs) on A2X Markets.

  1. NewGold (GLD)
  2. NewPlat (NGPLT) and
  3. NewGold Palladium (NGPLD).

The three ETFs will retain primary listings on the JSE and will now also be available for trade on A2X from 11 July 2019

Chris Edwards, Head of Prime Services and Index Solutions at Absa Corporate and Investment Bank said, “We are delighted to be the first issuer to offer investors the option of transacting in our metal ETFs on an alternative low-cost platform as well as the traditional JSE. ETFs are cost sensitive and by adding a secondary listing, it allows our investors to capture not only the direct saving of lower transaction fees but also the indirect savings that accrue as result of narrower spreads and increased liquidity.”

These listings follow A2X’s recent licence extension to include the secondary listing and trade of ETFs and ETNs that was granted by the Financial Sector Conduct Authority and the South African Reserve Bank’s Prudential Authority earlier this year.

The Newgold ETFs that are being listed on A2X are the largest ETFs in the local market with almost R25 billion in assets under management.

A2X CEO, Kevin Brady commented, “We are thrilled to have Absa’s three metal ETFs list on our platform. ETFs are experiencing significant growth due to their low cost and we are pleased to be able to extend our offering to include these products. These three large metal funds account for over 30% of the value of all ETF funds listed in SA.”

A2X boasts listings from many key sectors, including media, mining, banking, property, retail, pharmaceutical, FMCG, financial services, healthcare, insurance and telecommunications and now ETFs too.

A2X is a licensed stock exchange which provides a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority (SARB) in terms of the Financial Markets Act. A2X began trading in October 2017 and has nine approved brokers that account for about 50% of market activity.

ETFs to become available for trade on A2X from 11 July: 

Security Description Market Cap
GLD NewGold ETF 10 941 016 868
NGPLT NewPlat ETF  12 546 816 000
NGPLD NewGold Palladium  992 815 918
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