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Copyright© JSE Limited 2009
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The JSE today: ready for tomorrow Nicky Newton-King
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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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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
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Africa and its exchanges
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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
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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
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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
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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
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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
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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
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Tomorrow will be about
Greater involvement in policy Increasingly retail connected product range Appropriate regulatory standards Deeper risk management capability Better technology
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Thank you