Latest news with #A2X
IOL News
3 days ago
- Business
- IOL News
Barloworld's R23 billion sale inches closer as deal gets CompCom go ahead
Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. Image: Supplied Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. On Monday, the industrial company said that it had been granted Competition Commission approval to go ahead with the sale of a 40.93% stake to Entsha, which is ultimately owned by Dominic Sewela, as well as the Saudi Arabian company, which operates across 14 sectors in 33 countries. The consortium continues to woe investors to sell the balance of the listed industrial company, which has the sole rights to distribute Caterpillar in Southern Africa. Sewela's position as CEO of JSE-listed Barloworld was a bone of contention with the Public Investment Corporation (PIC), which had expressed concerns about a lack of transparency from the company. He will indirectly own a 51% stake in the consortium via an inter vivos trust. The Zahid Group will own the balance. The Competition Commission has now recommended the Competition Tribunal approve the deal, subject to certain conditions. These include the consortium implementing a 13.5% broad-based black economic empowerment transaction at Barloworld after the company is delisted on the JSE and A2X. Should the deal ultimately go ahead, Barloworld, an iconic South African company, will delist from the JSE after 84 years as a public company. Founded in 1902 as Thomas Barlow & Sons, the company has changed from being a family business selling woollen goods to a major industrial conglomerate with operations in 16 countries. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Because the initial scheme of arrangement failed towards the end of February, a Standby Offer, which was contingent on the scheme's success, was triggered. Although the PIC's concerns have been resolved, shareholders still have until the end of the month to vote on the Standby Offer. This Standby Offer could see the consortium increasing its stake from a currently committed 40.39% - including the PIC's 21.93% - to 100%. Caterpillar is in support of the deal. 'In addition to the approval of the Tribunal, the parties are continuing to work towards the fulfilment of the remaining conditions,' Barloworld said in a statement to shareholders on Monday morning. It said it would update shareholders on any material developments. IOL
IOL News
3 days ago
- Business
- IOL News
Barloworld's R23 billion sale inches closer as deal gets CompCom go ahead
Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. Image: Supplied Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. On Monday, the industrial company said that it had been granted Competition Commission approval to go ahead with the sale of a 40.93% stake to Entsha, which is ultimately owned by Dominic Sewela, as well as the Saudi Arabian company, which operates across 14 sectors in 33 countries. The consortium continues to woe investors to sell the balance of the listed industrial company, which has the sole rights to distribute Caterpillar in Southern Africa. Sewela's position as CEO of JSE-listed Barloworld was a bone of contention with the Public Investment Corporation (PIC), which had expressed concerns about a lack of transparency from the company. He will indirectly own a 51% stake in the consortium via an inter vivos trust. The Zahid Group will own the balance. The Competition Commission has now recommended the Competition Tribunal approve the deal, subject to certain conditions. These include the consortium implementing a 13.5% broad-based black economic empowerment transaction at Barloworld after the company is delisted on the JSE and A2X. Should the deal ultimately go ahead, Barloworld, an iconic South African company, will delist from the JSE after 84 years as a public company. Founded in 1902 as Thomas Barlow & Sons, the company has changed from being a family business selling woollen goods to a major industrial conglomerate with operations in 16 countries. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Because the initial scheme of arrangement failed towards the end of February, a Standby Offer, which was contingent on the scheme's success, was triggered. Although the PIC's concerns have been resolved, shareholders still have until the end of the month to vote on the Standby Offer. This Standby Offer could see the consortium increasing its stake from a currently committed 40.39% - including the PIC's 21.93% - to 100%. Caterpillar is in support of the deal. 'In addition to the approval of the Tribunal, the parties are continuing to work towards the fulfilment of the remaining conditions,' Barloworld said in a statement to shareholders on Monday morning. It said it would update shareholders on any material developments. IOL
Finextra
15-05-2025
- Business
- Finextra
A2X signs up UBS South Africa as first international broker to trade
A2X Markets, the licensed stock exchange providing a secondary listing venue for companies, today announces that UBS South Africa aims to commence trading on its platform in the second quarter of 2025, thus becoming the first international broker authorised to trade on the platform. 0 UBS is expected to trade across A2X's 175 listed companies and exchange-traded funds, spanning key sectors such as media, property, mining, banking, retail, FMCG, financial services, insurance, healthcare, and telecommunications. UBS joins an established network of brokers on A2X, including Peresec, RMB Morgan Stanley, Standard Bank, Absa CIB, Investec Markets, Nedgroup Securities, Prescient, Atisa, Sinayo, NOAH, Kela, and Vunani. These brokers are responsible for over 65% of all trades in listed securities executed in South Africa. Kevin Brady, CEO of A2X Markets, commented, 'We are delighted to welcome UBS as the first international broker to trade on our market. Their sophisticated algorithm suite will connect to A2X, enabling them to leverage all available markets in South Africa while accessing our additional liquidity and functionality.' Ed Popham-Holloway, Country Head of UBS South Africa, said: 'In line with our commitment to providing clients with international best practices and innovative solutions, we have invested to connect and trade on A2X, thus enabling us to access broader liquidity for our clients while leveraging the innovative infrastructure available on A2X.' A2X is a licensed stock exchange providing a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority (SARB) under the Financial Markets Act. A2X has been operational since October 2017. UBS has had a presence in the South African market for 30 years with a well-established advisory and execution business for local and global institutional investors. In addition, it operates a market leading structured products business and a top ranked local equities research team. UBS is a global financial services firm serving private, corporate, and institutional clients. With a presence in major financial hubs and offices in over 50 countries, UBS is a leader in investment banking and trading services.
Zawya
14-05-2025
- Business
- Zawya
South Africa high on the list for Global HFT Firms
South Africa is quietly becoming a global magnet for high-frequency and quantitative trading firms. With cutting-edge exchange infrastructure, increased retail activity, and competitive platforms like A2X, the local market is drawing serious attention from global proprietary trading players. Why now? Merlin Rajah, Head: Equities Electronic Product, Absa CIB delves deeper into some of the key drivers: Advanced infrastructure upgrades at the JSE, including Colocation 2.0 and ultra-low-latency market data access. Increased retail investor activity via fintech platforms creating more opportunities for HFTs to interact with retail flow. Growing market competition through venues like A2X, expanding arbitrage and trading strategies. A more technologically sophisticated sell-side, with smart order routing and enhanced execution capabilities. Absa's role as a key enabler, offering deep market expertise, strong infrastructure support, a robust stock loan pool, and a pan-African presence. High-Frequency Trading Firms Eye South Africa: What's Driving the Shift? So, what exactly are High-Frequency Trading (HFT) firms, and why have they become critical to today's financial ecosystem? More commonly referred to today as proprietary trading or quantitative trading firms, these entities specialise in executing algorithmic strategies powered by advanced mathematics and cutting-edge technology. They operate at ultra-high speeds, submitting thousands of orders per second—with the aim of exploiting price movements within extremely short timeframes, often ranging from microseconds to a few seconds. The goal is to capture 'alpha' and close out most, if not all, positions before the end of the trading day. Typical strategies include statistical arbitrage, index arbitrage, dual-listed arbitrage, and market making (simultaneous bid and offer placements to profit from the spread). South Africa's highly liquid markets, unique blend of advanced market infrastructure, regulatory frameworks, competitive dynamics, and its role as a financial gateway to Africa makes it a compelling destination for high-frequency and quantitative trading firms. Infrastructure Evolution: JSE's Leap Forward For exchanges, HFT firms are a significant revenue driver—generating income through execution, clearing, settlement, colocation, and market data services. Sell-side firms benefit as well, gaining a steady revenue stream and an increased market share. A major turning point came in 2012 when the Johannesburg Stock Exchange (JSE) migrated to the Millennium IT platform (owned by the London Stock Exchange Group). Two years later, the JSE introduced its colocation facility, offering traders ultra-low-latency access. The Millennium platform supports both Native and FIX protocols for order entry, post-trade processing, and drop copies, along with market data feeds via the MITCH (Millennium ITCH) and FIX/FAST protocols. Many firms prefer native binary protocols for their speed and unthrottled MITCH feeds to capture every possible microsecond advantage in market data processing. For firms trading in South Africa, opting for the unthrottled feed over the throttled version is essential. The JSE has continuously enhanced their platform to meet the needs of both institutional investors and HFT players. A key upgrade came in 2024 with the implementation of self-match prevention—designed to prevent internal teams from inadvertently trading against themselves, a costly mistake both in fees and regulatory scrutiny. On the other side of the spectrum, tools like pegged hidden orders, central order book crossing for client/prop flows, and spread-sensitive execution features have been rolled out to support institutional and sell-side players in navigating fast-paced, HFT-dominated markets. Colocation 2.0: World-Class Access at Lower Costs Though compact, the JSE's colocation facility is a Tier 3 data center meeting global standards. It's equipped with robust battery and generator backup—critical in a country where power outages remain a challenge. The 2023 launch of Colocation 2.0, in partnership with Beeks and IPC, introduced cloud-based access options. This provides a lower-barrier entry point for firms wanting to explore Africa's most sophisticated exchange. Starting at under $200 per month (excluding data costs), firms can connect to the JSE's test environment, market data, and reference data feeds from within the colocated ecosystem. These infrastructure upgrades have laid the groundwork for international quant and HFT firms to target South Africa, with a noticeable uptick in trading volume and order flow to show for it. The Rise of Retail Retail equity trading in South Africa has seen a notable uptick in recent years, driven by greater accessibility to online trading platforms, the rise of fintech, and an increasingly financially literate population. Low-cost brokers and app-based trading platforms have played a significant role in democratising access to the JSE, enabling everyday South Africans to invest in local stocks with minimal capital. This shift has been particularly pronounced among younger investors, who are more digitally savvy and inclined toward self-directed investment strategies. Although individual (retail) investors still trade less than big institutions and high-frequency traders, their increasing involvement in the market is having a real impact. As a result, brokers are responding by improving their platforms—making them easier to use, reducing trading fees, and providing more educational resources and tools to help these newer investors make informed decisions. Much more can be done in this space to provide retail with live pricing. This has also been a contributing factor as HFT firms want to trade with retail participants who trade through the spread. A2X and Market Competition: Fueling Sophistication The local trading landscape has also become more competitive, due to alternative venues like A2X. Offering advanced technology and competitive fees, A2X has carved out a decent market share by attracting both local and global trading firms. With no admit-to-trade model however, or a stance on an MTF framework, it has been a difficult journey for A2X to onboard new issuers but have done exceptionally well in terms of onboarding 180+ listings with a market capitalization of R9 trillion. This is a boon for HFT firms, who benefit from increased liquidity and more arbitrage opportunities across exchanges. The emergence of multiple trading venues has pushed sell-side firms to enhance their technological capabilities—implementing smart order routers, upgrading sell side algorithms, robust settlement solutions and offering low-latency access to enable both institutional clients and HFTs to execute efficiently. This growing sophistication reflects the broader maturation of South Africa's capital markets. A Market of Strategic Importance As these firms deepen their presence, they're contributing to the ongoing evolution of the market and the continent—driving innovation, improving efficiency, and expanding participation. Absa has positioned itself as a key enabler in this transformation, offering HFT firms ultra-low-latency access, deep market infrastructure expertise, a robust stock loan pool, and a strong balance sheet to support advanced trading strategies. As the rest of Africa opens to these possibilities, Absa remains ready to unlock these opportunities for our clients with by already having presence in several African countries.
