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The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80%...

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1 www.jse.co.za Copyright© JSE Limited 2009 www.jse.co.za The JSE today: ready for tomorrow Nicky Newton-King
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Page 1: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

1

www.jse.co.za

Copyright© JSE Limited 2009

www.jse.co.za

The JSE today: ready for tomorrow Nicky Newton-King

Page 2: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

2

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

A bit of history – where we were

Page 3: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

3

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

A bit of history – where we are

Page 4: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

4

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

JSE in the global context

Source: WFE, data for September 2012

0%

50%

100%

150%

200%

250%

300%

0 1 000 2 000 3 000 4 000 5 000 6 000 7 000

Liqu

idity

# of Listed Companies

September 2012

TMX Group

NYSE Euronext

NASDAQ OMX

LSE Group

Tokyo SE

ASX

Shenzhen SE

NSE India

Hong Kong

Shanghai SE D-Borse

Singapore BM&FBov

JSE Bombay SE

BME Spanish Exchanges

Korea Exchange

Taiwan SIX Swiss

MICEX/RTS

Page 5: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

5

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

Africa and its exchanges

Page 6: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

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

The JSE on the continent

Source: African Alliance, data for September 2012

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

0 50 100 150 200 250 300 350 400 450 500 Liqu

idity

# of listed companies

September 2012

JSE EGX

Nigeria

Ghana

Kenya

SEM

BSE

Morocco

ZSE

Tunisia Tanzania

LuSE

Page 7: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

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

Our value chain – vertical and horizontal integration…in a listed exchange group

LISTING

TRADING

CLEARING

SETTLEMENT

Equities Equity Derivatives

Commodity Derivatives

Interest Rate Products

Data Products

Front line regulator

Page 8: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

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

Investment on the JSE equity market

0

7

14

21

28

35

42

49

56

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2007 2008 2009 2010 2011 2012

% Rbn

Value traded on equity market

By res By non-res Non-res % of tot

Page 9: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

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

Investment on the JSE bond market

0

8

16

24

32

40

48

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2009 2010 2011 2012

% Rbn

Value traded on bond market

By res By non-res Non-res % of tot

Page 10: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

10

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

Non-resident activity on JSE

-60,000

-50,000

-40,000

-30,000

-20,000

-10,000

-

10,000

20,000

30,000

2007 2008 2009 2010 2011 2012

Rbn

Net purchases/sales by non-res on JSE

Bonds Equities

GFC

Page 11: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

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

Forces impacting our environment

JSE

Political: •Global leadership crisis •Increasing importance of BRICS – growth story faltering?

Economic: •Crisis of confidence in capitalism •Shift in economic centre to the East/South

•SA: growth of the middle class •Cost pressures continue

Social: •Rise of civil discontent •SA: high income inequality and unhappiness with service delivery

•Demand for greater corporate reaction Technology:

•Rapid technological innovation

•Increasing importance of social media

•Opportunity to be more agile but loss of agility associated with legacy investments

•Competition from growing range of intermediaries becomes easier

Regulatory: •Re-regulation of financial markets and focus on risk

•Increasing cost of regulatory compliance

Page 12: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

12

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

Tomorrow will be about

Greater involvement in policy Increasingly retail connected product range Appropriate regulatory standards Deeper risk management capability Better technology

Page 13: The JSE today: ready for tomorro · Source: African Alliance, data for September 2012 -100% -80% -60% -40% -20% . 0% . 20% . 40% . 60% . 80% . 100% Liquidity 0 50 . 100 . 150 200

13

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

Thank you


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