A2X Targets Active ETF Boom with Push for New Listings
South Africa's secondary stock exchange, A2X, has approached the Financial Sector Conduct Authority (FSCA) to amend its listing requirements, paving the way for secondary listings of actively managed exchange-traded funds (AMETFs) and actively managed certificates.
The move comes as global actively managed ETF assets are projected to triple to $4.2 trillion by 2030, according to research from BlackRock. In South Africa, the ETF market has demonstrated remarkable growth, averaging more than 18% annually over the past five years, with assets under management exceeding R285 billion as of September 2025.
What A2X Is Proposing
Currently, A2X is licensed to list equities, debt instruments, contracts for difference (CFDs) and exchange-traded products (ETPs) that are not collective investment schemes. To accommodate AMETFs and actively managed certificates, the exchange requires an amendment to FSCA regulations.
If approved, this change would allow A2X to offer secondary listings of these products, increasing competition in South Africa's ETF landscape. Greater competition typically benefits traders through tighter spreads, lower costs, and wider product choices.
Why This Matters for Traders
The global shift toward active ETFs has been accelerating. Unlike traditional passive ETFs that track an index, actively managed ETFs are run by portfolio managers who make investment decisions — often appealing to traders seeking alpha generation.
Key growth drivers include:
Regulatory tailwinds following the SEC's approval of Dimensional Fund Advisors' actively managed ETF share class in March 2026
Record inflows into active ETFs globally — $167.6 billion in the first two months of 2026 alone
Projected growth to $10 trillion in active ETF assets within the next decade, according to 94% of survey respondents
Market Sentiment
Bullish on the South African ETF market expansion and increased competition.
The proposed A2X amendment signals a maturing local ETF ecosystem. Increased exchange competition historically leads to:
● Reduced trading costs
● Improved liquidity
● Greater product innovation
However, traders should note that regulatory approval timelines remain uncertain, and the FSCA has not yet indicated when a decision might be expected.
Click the button below to monitor these tickers for potential volatility as the A2X proposal progresses.
Disclaimer:
This content has been generated using AI technology and is intended for informational purposes only. While efforts have been made to ensure accuracy and relevance, this text should not be considered professional advice or an official statement. Always verify information from authoritative sources before making any decisions. This is not financial advice.
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