After praising the Financial Services Board (FSB) for introducing checks and balances to the over-the counter BEE market, with the benefit of hindsight, one must be wondering: Just what was the Financial Services Board (FSB) thinking?
Apparently, the recent Financial Services Board (FSB) directives requiring trading platforms to apply for exchange licences have brought more harm than good in the over-the-counter (OTC) BEE market, well-intentioned as they might initially have seemed to be.
Nowhere is the negative consequence of the FSB’s directive more apparent than in the 30% plunge in trade volumes. One can understand the fears of BEE shareholders that this might negatively affect liquidity and pricing of their shares.
However, justifying the move, the FSB says it aims atenforcing existing laws which regulate ‘exchanges’ and protect investors. The trading platforms now meet the definition of an exchange and thus should either apply for a licence, an exemption or cease trading.
After praising the Financial Services Board (FSB) for introducing checks and balances to the over-the counter BEE market, with the benefit of hindsight, one must be wondering: Just what was the Financial Services Board (FSB) thinking?
Apparently, the recent Financial Services Board (FSB) directives requiring trading platforms to apply for exchange licences have brought more harm than good in the over-the-counter (OTC) BEE market, well-intentioned as they might initially have seemed to be.
Nowhere is the negative consequence of the FSB’s directive more apparent than in the 30% plunge in trade volumes. One can understand the fears of BEE shareholders that this might negatively affect liquidity and pricing of their shares.
However, justifying the move, the FSB says it aims atenforcing existing laws which regulate ‘exchanges’ and protect investors. The trading platforms now meet the definition of an exchange and thus should either apply for a licence, an exemption or cease trading.