Director’s Cut: Kevin Brady – How A2X forced the JSE to face real competition

A2X CEO Kevin Brady joins Alec Hogg for a director’s cut deep dive into the explosive Competition Commission ruling that threatens the JSE’s century-old dominance. Brady reveals how his team spent three years proving that the JSE was blocking competition by weaponising its outdated BDA system, and explains why regulators now believe there’s a strong case of exclusionary conduct. He breaks down what this means for investors, how much South Africans have lost through monopolistic pricing, and why true competition could save the country over a billion rand a year. Brady also unpacks the future of 24-hour trading, new regulatory reforms, and whether the JSE’s new leadership will fight or finally open the market..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Watch here.Listen here.BizNews Reporter.Kevin Brady speaks in calm, measured tones, but there is no mistaking the weight of what he and his team at A2X have done. For three years, they fought a case that many in the industry thought was unwinnable. They challenged the JSE on the use of its post-trade BDA system and argued that the country’s dominant exchange was blocking competition.After years of silence and technical back-and-forth, the Competition Commission finally released its findings. And they landed with force. The Commission agreed that the JSE’s conduct was anti-competitive, that its pricing was exclusionary, and that its actions had prevented the growth of genuine competition in South Africa’s equity market.For Brady, it was a turning point, not just for A2X, but for every South African investor.“We went into this knowing it could take years,” he tells Alec Hogg. “We believed we had a strong case. But the process was long, the paperwork was heavy, and the stakes were enormous. We kept going because we believed the market needed this.”The heart of the dispute was the BDA system. The JSE is the sole provider of clearing and settlement services in South Africa. That system is old, expensive, and deeply embedded in every trade in the market. Brady explains that A2X trades are ten times more efficient and much cheaper to execute, but that brokers were still tied to the JSE’s systems because of the way the BDA platform was structured and priced.“The bottleneck was always the same,” he says. “Even if brokers wanted to use a cheaper, faster platform, the BDA charges from the JSE made it uneconomical. The system was designed in a way that made competition almost impossible. That is what we challenged.”It took the Competition Commission hundreds of pages of documentation, technical interviews, and financial modelling to reach its conclusion. But the outcome was clear. The JSE’s pricing was unfair. The structure was exclusionary. And the effect was to keep competitors like A2X on the sidelines of a market that desperately needed innovation.Brady says the win is not about punishing the JSE. “They are a critical institution,” he says. “We all need them to be strong. But strength comes from accountability. When one player controls everything, the country pays the price. If you create space for competition, everyone benefits. Investors get better pricing. Brokers get options. Pension funds get lower costs. That is what this is about.”The Competition Commission’s ruling opens the door for financial penalties that could exceed R300 million. But just as important are the behavioural remedies. The JSE will have to change how it prices access to the BDA system. It will have to allow competitors equal footing. And it will have to restructure parts of its monopoly that have existed for decades.Brady says this moment is about the future, not the past. “The real win is what happens next,” he says. “If the JSE adjusts its pricing fairly, South Africa can have a competitive market. That is the norm elsewhere in the world. We are not reinventing the wheel. We are simply catching up.”He points out that countries with multiple exchanges are more liquid, more dynamic, and more attractive to global capital. “Competition stimulates innovation,” he says. “It keeps costs low. It forces everyone to raise their game. South Africa deserves that.”What struck many listeners in the interview was Brady’s emphasis on patience. “There were moments when we thought it would break us,” he admits. “The legal bills, the delays, the pushback. It takes a toll. But every time we went back to the principle behind the case. If we gave up, nothing would change.”A2X has grown into a credible challenger despite the obstacles. Dozens of South Africa’s biggest companies have listed on the exchange, including Naspers and Prosus. Trading volumes have increased. Costs have fallen. Brokers have gained confidence.“We always knew that once people tried the platform, they would stay,” he says. “The technology is world class. The pricing is better. The execution is smoother. But we needed the environment to support us. That is why the Competition Commission ruling is so important.”Asked whether the JSE has responded constructively since the ruling, Brady stays diplomatic. “They have engaged,” he says. “We have had meetings. I think they understand the landscape has changed. They can embrace competition or fight it. But the direction of travel is clear. South Africa wants choice. Investors want value. Markets want efficiency.”He stresses that this is not a war between institutions, but a shift toward modernisation. “Look at global markets,” he says. “Competition does not weaken an exchange. It strengthens the ecosystem. It brings in new money. It drives innovation. It creates resilience. That is what South Africa needs.”Brady believes the ripple effects could extend far beyond equities. “If we can open up equities, why not bonds? Why not derivatives? Why not commodities?” he asks. “Competition brings creativity. It brings new thinking. And South Africa needs that more than ever.”In the closing moments of the interview, Hogg asks Brady what he would say to the brokers and investors who stood by A2X through the long legal fight. Brady pauses before answering. “Thank you,” he says simply. “This is your victory as much as ours. You believed change was possible. And now the path is open.”The next chapter will test every player in the market. The JSE will have to adapt. Regulators will have to monitor. Brokers will have to modernise. But for the first time in years, the promise of a competitive, efficient, investor-friendly market feels within reach.And at the centre of that shift stands a quiet CEO who spent three years pushing a boulder up a hill — and finally watched it move.

Director’s Cut: Kevin Brady – How A2X forced the JSE to face real competition

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