1

www.jse.co.za

Copyright© JSE Limited 2009

www.jse.co.za

The JSE – 125 years of history and progress29 August 2012, by Monica Ambrosi

2

www.jse.co.zawww.jse.co.za

A bit of history – where we were…

3

www.jse.co.zawww.jse.co.za

A bit of history – where we are...

4

www.jse.co.zawww.jse.co.za

History of the JSE

1887: JSE foundedIn 1995: • Open outcry floor trading; settlement 7 days later or more• Equities only

1996: Centralised order book introduced1999: STRATE formed (dematerialisation) 2001: Acquired SA Futures Exchange (SAFEX)2002: Move to guaranteed T+5 settlement of equity trades2002: Adopted LSE trading platform2005: Exchange demutualised2006: JSE listed on its own exchange 2009: Acquired the Bond Exchange of South Africa (BESA)2012: New equities trading platform introduced

5

www.jse.co.zawww.jse.co.za

The JSE in the local economy

Hong Kong (high)Luxembourg (high)Switzerland (high)

South Africa (upper middle)India (lower middle)

Taiwan (high)Malaysia (upper middle)

Canada (high)Israel (high)

Iceland (high)Brazil (upper middle)

US (high)Singapore (high)

UK (high)France (high)Japan (high)

Germany (high)

0 1 2 3 4 5 6 7 8

Market capitalisation/GDP ratio (deflated), 2009

• 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 BankNote: ( ) refers to World Bank income group classification

6

www.jse.co.zawww.jse.co.za

Comprehensive offering

LISTING

TRADING

CLEARING

SETTLEMENT

Interest Rate Products

Commodity DerivativesEquitiesEquity

Derivatives

Market SurveillanceInformation Products

7

www.jse.co.zawww.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

8

www.jse.co.zawww.jse.co.za

The JSE within the global context

NYSE Euronext (US)

Tokyo SE Group

Shanghai SE

NYSE Euronext (Europe)

Shenzhen SE

Australian SE

SIX Swiss Exchange

National Stock Exchange of India

NASDAQ OMX Nordic Exchange

Johannesburg Stock Exchange

0 5,000,000 10,000,000 15,000,000

Domestic market capitalisation (equities), May 2012

$m

Casablanca – $53.6bnEgyptian – $55.9bnMauritius – $7.6bn

Source: World Federation of Exchanges

9

www.jse.co.zawww.jse.co.za

The JSE within the global context

0 1000 2000 3000 4000 5000 60000

50

100

150

200

250

300

Number of listed companies

Liqu

idity

%

Istanbul SE

NASDAQ OMXShenzhen SE

NYSE GroupTokyo SE Group

Bombay SE

TMX Group

London SE Group

Hong Kong Exchanges

ASX

NSE India

Shanghai SE

DeutscheBörse

Egypt SE

JSE

Bursa Malaysia

OMX Nordic

Source: World Federation of Exchanges; data for May 2012

10

www.jse.co.zawww.jse.co.za

The JSE within the global context

2006

2006

/06

2006

/11

2007

/04

2007

/09

2008

/02

2008

/07

2008

/12

2009

/05

2009

/10

2010

/03

2010

/08 2011

2011

/06

2011

/11-60,000

-50,000

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

Non-resident portfolio capital flows

Shares Bonds

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)

Sources: SARB & JSE

11

www.jse.co.zawww.jse.co.za

Thank you