How to trade shares in broad-based black economic empowerment schemes

Equity Express Securities Exchange, a platform known for trading broad-based black economic empowerment (BEE) schemes such as MultiChoice and Media24's Phuthuma Nathi and Welkom Yizani, is now looking to diversify its offerings to attract a broader range of investors. Anthony Wilmot, the CEO of Equity Express Securities Exchange, recently shared insights on the performance and liquidity of these BEE schemes in an exclusive interview with CNBC Africa. Wilmot provided a comprehensive overview of the market liquidity for the listed schemes, highlighting the trading volumes and shareholder base as key determinants of liquidity. While some schemes struggled with lower liquidity levels, such as the original Kambatt scheme, others like Phuthuma Nathi and Welkom Yizani demonstrated higher liquidity ratios. The presence of a larger shareholder pool, with nearly 90,000 shareholders in the case of Phuthuma Nathi, facilitated more active trading and enhanced liquidity in these schemes. In addressing the perception of Equity Express Securities Exchange as primarily focused on BEE schemes, Wilmot explained the historical context that led to its specialization in this market segment. Having previously operated as a chief executive at Senior Systems, Wilmot shared his experience in transitioning clients from over-the-counter trading to regulated exchanges like Equity Express Securities Exchange. The seamless transition for existing investors, coupled with a familiar support structure, has been a key attraction for BEE schemes to list on the platform. Looking ahead, Equity Express Securities Exchange is strategizing to expand its non-BEE offerings by leveraging its investor base and collaborating with key stakeholders in the industry. While regulations currently limit the platform to primary listings only, Wilmot expressed interest in exploring opportunities to list additional financial instruments like bonds to diversify their portfolio. Despite challenges in the market, including more delistings than listings in recent months amid economic downturns, Wilmot remains optimistic about the future outlook for the exchange. As Equity Express Securities Exchange embarks on its journey to broaden its market offerings and attract a wider investor base, the platform is poised to unlock new opportunities in the South African trading landscape. With a focus on innovation, collaboration, and investor engagement, Equity Express Securities Exchange is well-positioned to drive growth and diversification in the market, empowering investors to access a wide range of investment opportunities.