The Johannesburg Stock Exchange Nicky Newton-King: Deputy CEO www.jse.co.za www.jse.co.za Copyright© JSE Limited 2009 1 A bit of history – where we were www.jse.co.za 2 A bit of history – where we are www.jse.co.za 3 The exchange value chain – vertical and horizontal integration… Front line regulator LISTING TRADING Equity Commodity Interest Rate Equities Derivatives Derivatives Products CLEARING SETTLEMENT Data Products www.jse.co.za 4 The JSE today • Front line regulator − Of primary and secondary markets • Listing, Trading, Clearing and Surveillance across 4 Markets − Equities Main Board and AltX − Equity Derivatives – SSF, index derivatives, currency futures, can-do options to name a few − Commodity Derivatives – maize, wheat, soya, sunflowers, and CME-referenced corn, crude oil, gold, and platinum − Interest Rate Products • Clearing and risk management services • Settlement − Own just under 45% of Strate − Guarantee of central order book equity trades • Data sales • Back office technology • Self-regulatory organisation and listed company www.jse.co.za − JSE regulated by FSB www.jse.co.za 5 The JSE today • World class standards − South Africa ranked first for securities market regulation according to the WEF Global Competitiveness Report 2010/2011 and 2011/2012 − Long term member of World Federation of Exchanges • Regulatory framework − Securities Services Act to be replaced by the Financial Markets Bill − Role of FSB, NT and SARB • Governance and auditing standards − King Reports − Listings requirements • World class technology • Settlements records − Zero failed trades www.jse.co.za 6 The JSE today • Liquidity − Comparable globally • Staff profile − Total number of staff: 440 − Average age: 37 − Black/White: 55% / 45% − Male/female: 51% / 49% • Our wider involvement − Education − Socially Responsible Investment Index www.jse.co.za 7 The JSE today • Regulatory and international developments − Focus on OTC trading − Interest rate markets − Post-trade risk management www.jse.co.za 8 Africa and its exchanges Involvement on the continent: • ASEA • COSSE • Capacity building www.jse.co.za 9 African Exchanges – relative size comparison Tanzania Figures for the month of September 2011 www.jse.co.za Source: JSE 10 JSE in the global context NYSE Group Deutsche Börse Tokyo SE Group Hong Kong OMX Nordic Exchanges TMX Group ASX JSE NSE India London SE Group Bombay SE Egypt SE Bursa Malaysia Figures for the month of September 2011 www.jse.co.za Source: JSE and WFE 11 Sectoral breakdown of JSE market capitalisation 8.3% 3.6% 4.35%6% 25.3%25.3% 15.9% 4% Figures as at week ending 09 November 2011 www.jse.co.za Source: JSE and WFE 12 Available share capital for South African investors 9% 33% 14% 18% www.jse.co.za Source: JSE & Trevor Chandler and Associates www.jse.co.za 13 www.jse.co.za 14.