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
A bit of history where we were
www.jse.co.za
A bit of history where we are...
www.jse.co.za
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
www.jse.co.za
The JSE in the local economy
Market capitalisation/GDP ratio (deflated), 2009
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) 0 2 4 6 8
Ratio reflects size of stock market relative to the economy 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
Source: World Bank Note: ( ) refers to World Bank income group classification www.jse.co.za
Comprehensive offering
SETTLEMENT
CLEARING
Equity Derivatives Equities Commodity Derivatives Interest Rate Products
TRADING
LISTING
Market Surveillance Information Products
www.jse.co.za
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
www.jse.co.za
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) 0 Casablanca $53.6bn Egyptian $55.9bn Mauritius $7.6bn
$m 4,000,000 8,000,000 12,000,000
Source: World Federation of Exchanges www.jse.co.za
The JSE within the global context
300 250
Shenzhen SE NASDAQ OMX
Liquidity %
200 150 100 50 0 0 1000 2000 3000 4000 Number of listed companies 5000 6000
JSE Istanbul SE Shanghai SE Tokyo SE Group ASX Deutsche Brse Hong Kong OMX Nordic Exchanges TMX Group NYSE Group
NSE India Egypt SE Bursa Malaysia
London SE Group
Bombay SE
Source: World Federation of Exchanges; data for May 2012
www.jse.co.za
The JSE within the global context
Non-resident portfolio capital flows
40,000 30,000 20,000 10,000 0 -10,000 -20,000 -30,000 -40,000 -50,000 -60,000 2006 2007 2008 2009 2010 Bonds 2011 2012 Rm
GFC
Non-resident investors are key participants in local equity and bond markets These portfolio flows, although volatile, are critical for the Balance of Payments of the economy The value of bond trading recorded on the JSE is the 4th highest globally (y-t-d May 2012 $1.2 trillion)
www.jse.co.za
Shares
Sources: SARB & JSE
10
Thank you
www.jse.co.za
11
