Luminaris Securities and Capital Ltd. Receives Official Approval from South Africa’s FSCA

Dual Authorization Granted for ETF Issuance and Market-Making Operations, Marking a New Stage of Internationalization for South Africa’s Asset Management Industry

South Africa, 27th Nov 2025 – Luminaris Securities & Capital Ltd. has officially received approval from South Africa’s Financial Sector Conduct Authority (FSCA), authorizing the firm to issue, manage, and operate Exchange-Traded Funds (ETFs) and to conduct market-making activities in the South African market. This milestone marks a major step forward for South Africa’s capital markets in the direction of internationalization, diversification, and transparency—enabling local investors to access global indices, diversified asset classes, and major industry growth opportunities at lower cost and higher efficiency.

Regulatory Breakthrough Under the FSCA Framework

Following FSCA authorization, Luminaris will launch multiple ETFs for local issuance, establish full compliance connectivity with the Johannesburg Stock Exchange (JSE), and provide dual-currency investment options in both South African rand (ZAR) and US dollars (USD).

The ETF product suite will include:

• Broad-based Index ETFs (JSE, S&P, global indices)
• Sector-themed funds (technology, resources, finance, telecom, consumer industries) 
• Quant-driven active management ETFs 

The company noted that the approval reflects strong recognition from South African regulators of its transparent operations, global-standard risk controls, and institutional asset management capabilities.

ETFs: A Catalyst for Market Liquidity and Structural Upgrading

ETFs have become mainstream investment vehicles worldwide. Global ETF AUM increased from USD 1 trillion in 2010 to USD 11 trillion in 2024, driven by low fees, transparency, and real-time tradability.

FSCA’s approval of Luminaris’ ETF programme is expected to:

• Enhance secondary market liquidity
• Broaden institutional investor participation 
• Introduce index-based and quantitative investment tools 
• Attract global capital inflows into the South African market 

As one senior market economist commented,
“An ETF is not merely a fund — it is a structural upgrade to the market mechanism.”

Investment Outlook: Supporting South Africa’s Long-Term Growth

South Africa remains one of Africa’s most diversified and financially developed economies. Despite cyclical fluctuations, its financial system, trade foundation, and expanding middle class underpin long-term growth.

ETF and market-making operations are expected to bring three strategic advantages:

• Formation of long-duration capital — attracting pension, insurance, and bank-managed funds 
• Market transparency and pricing efficiency — through index-based valuation frameworks
• Enhanced international capital access — enabling global investors to participate more easily in local market growth

Experts believe this development positions South Africa to evolve from an “emerging market” into a “global investment destination.”

First Batch of Flagship Products

Luminaris plans to introduce two flagship offerings:

South Africa Core Growth ETF (SACG)

Tracking leading South African enterprises while incorporating international weightings; suitable as a long-term portfolio core holding.

Market Maker Stock Intelligence System (MMSIS)

An automated market-making engine based on real-time order-book analytics and dynamic pricing models, designed to optimize liquidity, narrow spreads, stabilize market activity, and provide investors with more competitive execution.

These products will be registered within the FSCA and JSE regulatory frameworks. South African investors may subscribe directly through the Luminaris online trading platform, while Non-Resident South Africans (NRSA), overseas South African investors, and qualified foreign institutional investors (QFII) may participate upon approval.

Industry Response: “One of the Most Significant Market Innovations in Years”

Financial analysts describe the dual approval for ETF issuance and market-making as one of South Africa’s most impactful capital-market upgrades in recent years.

“ETF adoption aligns South Africa with global investment standards,” said a senior economist at the South African Capital Markets Research Center. “We will see more international inflows, more AI-driven advisory tools, and more structured investment products entering this high-potential market.”

About Luminaris Securities & Capital Ltd.

Luminaris Securities & Capital Ltd. is a multinational financial institution headquartered on Wall Street, with branches across Asia, Europe, and Africa. The firm specializes in ETF index investing, market-making and liquidity engineering, cross-border asset allocation, and institutional asset management, with over USD 200 billion in assets under management.

The South African regulatory approval marks a major milestone in the company’s Africa expansion strategy. Luminaris will introduce international-standard compliance frameworks and high-transparency disclosure practices to support South Africa’s continued integration with global financial markets.

Media Contact

Organization: Luminaris Securities & Capital Ltd.

Contact Person: Henry Jo

Website: https://luminarissecurities.com/

Email: Send Email

Country:South Africa

Release id:37886

Disclaimer: This announcement is provided for general information purposes only and does not constitute investment advice, an offer to sell, or a solicitation to buy any financial instruments. Regulatory approval referenced herein does not imply endorsement of any products or services. Investors should conduct their own due diligence and consult licensed financial professionals before making any investment decisions.

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