Download Media Day presentation July 2012

The JSE – 125 years of history and progress
29 August 2012, by Monica Ambrosi
www.jse.co.za
www.jse.co.za
Copyright© JSE Limited 2009
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A bit of history – where we were…
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A bit of history – where we are...
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History of the JSE
1887: JSE founded
In 1995:
• Open outcry floor trading; settlement 7 days later or more
• Equities only
1996: Centralised order book introduced
1999: STRATE formed (dematerialisation)
2001: Acquired SA Futures Exchange (SAFEX)
2002: Move to guaranteed T+5 settlement of equity trades
2002: Adopted LSE trading platform
2005: Exchange demutualised
2006: JSE listed on its own exchange
2009: Acquired the Bond Exchange of South Africa (BESA)
2012: New equities trading platform introduced
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www.jse.co.za
The JSE in the local economy
Market capitalisation/GDP ratio (deflated), 2009
• Ratio reflects size of stock
market relative to the economy
Germany (high)
Japan (high)
France (high)
UK (high)
Singapore (high)
US (high)
Brazil (upper middle)
Iceland (high)
Israel (high)
Canada (high)
Malaysia (upper middle)
Taiwan (high)
India (lower middle)
South Africa (upper middle)
Switzerland (high)
Luxembourg (high)
Hong Kong (high)
• The JSE is 125 years old and
has grown to a significant size
(ratio of 3.38 in 2009)
• The JSE is a conduit for
domestic and foreign savings in
the economy
0
2
4
6
8
Source: World Bank
Note: ( ) refers to World Bank income group classification
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Comprehensive offering
SETTLEMENT
CLEARING
Equity
Derivatives
Equities
Commodity
Derivatives
Interest Rate
Products
TRADING
Market Surveillance
Information Products
LISTING
www.jse.co.za
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Market development & product innovation
• Shape development of local capital markets and influence
relative policy environment
• Equities market:
• New products (ETFs, ETNs)
• New customers (broaden international client base)
• Equity derivatives:
• Bring trading onto central order book
• Interest rate market:
• Grow the interest rate derivatives offering
• Enhance corporate bonds offering
• Commodity derivatives market:
• Trading of other African derivatives
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The JSE within the global context
Domestic market capitalisation (equities), May 2012
MIXEC/RTS
Johannesburg Stock Exchange
BME Spanish Exchanges
NASDAQ OMX Nordic Exchange
Korea Exchange
National Stock Exchange of India
Bombay SE
SIX Swiss Exchange
BM&F Bovespa
Australian SE
Deutsche Borse
Shenzhen SE
TMX Group
NYSE Euronext (Europe)
Hong Kong Exchanges
Shanghai SE
London SE
Tokyo SE Group
NASDAQ OMX
NYSE Euronext (US)
Casablanca – $53.6bn
Egyptian – $55.9bn
Mauritius – $7.6bn
$m
0
4,000,000
8,000,000
12,000,000
Source: World Federation of Exchanges
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The JSE within the global context
300
250
NASDAQ OMX
Liquidity %
Shenzhen SE
200
Istanbul SE
150
Shanghai SE
Tokyo SE Group
NYSE Group
ASX
Deutsche
Börse Hong Kong
100
JSE
50
OMX
Nordic
NSE India
Egypt SE
TMX Group
Exchanges
London SE Group
Bombay SE
Bursa Malaysia
0
0
1000
2000
3000
4000
Number of listed companies
5000
6000
www.jse.co.za
Source: World Federation of Exchanges; data for May 2012
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The JSE within the global context
Non-resident portfolio capital flows
40,000
Rm
• Non-resident investors are key
participants in local equity and
bond markets
GFC
30,000
20,000
10,000
0
• These portfolio flows, although
volatile, are critical for the
Balance of Payments of the
economy
-10,000
-20,000
-30,000
-40,000
-50,000
-60,000
2006
2007
2008
2009
Shares
2010
2011
Bonds
2012
• The value of bond trading
recorded on the JSE is the 4th
highest globally (y-t-d May 2012
$1.2 trillion)
Sources: SARB & JSE
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Thank you
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