Copyright© JSE Limited 2008 www.jse.co.za
JSE – Africa’s premier exchange
Noah GreenhillSenior General Manager: Marketing, JSE Ltd
4 March 2008
Mine Africa 2008
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A brief history of the JSE
Founded in 1887
In 1995:
• Open outcry floor trading
• Settlement 7 days later or more
• Physical delivery of share certificates
• Equities only
1995: Deregulation of the JSE
1996: Introduction of order-driven, centralised, automated trading system - JET
1997: Introduction of real-time news service for dissemination of price sensitive information - SENS
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A brief history of the JSE
1999: Formation of STRATE
2001: Acquisition of SAFEX
2002: Move to guaranteed, contractual T+5 settlement of equity trades
2002: Replacement of JET with JSE SETS (LSE trading platform)
2003: Launch of AltX
2004: Introduction of SRI Index
2005: Launch of Yield-X
2006: Listing of JSE on Main Board
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JSE as it is today
5 Markets
• Equities – listing, trading & regulation of shares, ETFs and warrants• Equity Derivatives – SSF, index derivatives, can-do options• Agricultural Products – maize, wheat, soya and sunflowers• AltX• Yield-X
Equities and derivatives clearing
Settlement
• Own 45% of STRATE• Guarantee of equity trades
Information product sales
Technology services
© 6All figures are as at end December 2007
Primary markets again an attractive proposition
• Positive growth trend in new listings across both markets
• Growth in foreign listings
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No. Of Listed Companies
Some interesting facts and figures: Equities (Main Board and AltX)
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Capital raising opportunities suggest value for both issuers and investors
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20,000
40,000
60,000
80,000
100,000
120,000
140,000
Eq
uit
y C
ap
ita
l Ra
ise
d (
RM
il)
Some interesting facts and figures: Equities (Main Board and AltX)
All figures are as at end December 2007
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Continued strong performance in the secondary markets:• Average daily value traded up 39% (on 2006)• Average daily number of deals up 45% (on 2006)• Net foreign investment positive at R63.3 bn
Some interesting facts and figures: Equities (Main Board and AltX)
All figures are as at end December 2007
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2,000
4,000
6,000
8,000
10,000
12,000
14,000
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500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
No
Tra
de
s (0
00
's)
Va
lue
Tra
de
d (R
Mil)
VALUE DEALS
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Some interesting facts and figures: Equities (Main Board and AltX)
Significant value received by investors:• Market capitalisation at nearly R6 trillion – JSE remains in top 20 exchanges • Solid improvement in liquidity to 45%
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50
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1,000
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Liq
uid
ity (%
)
Ma
rke
t Ca
p (R
bn
)
Market Capitalisation Liquidity (%)
All figures are as at end December 2007
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Introduction to AltX
AltX is the JSE’s exciting market for small and medium high growth companies
Provides an alternative for raising capital
Is operated by the JSE
AltX Philosophy:
• Best practice model
• Quality controls
• Designated Adviser
• AltX Advisory Committee
• Directors Induction Programme (DIP)
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AltX facts and figures
Exceptional market performance over the last 21 months
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60000
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Alternative Exchange I ndex All Share I ndex
3 April 06AltX: 2000 pointsAlsi: 20712 points
AltX vs. All Share Index
AltX: 4797 pointsAlsi: 28958 points
All figures are as at end December 2007
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SA vs UK
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4500Index GBP
NSJME
NSJME AxisIndex GBP Axis
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Dual Listing
Gain exposure to alternative shareholders.
Enjoy local knowledge, expertise and interest in your company.
Be able to use local shares for transactions.
Facilitate compliance with SA government charters on broad based black economic empowerment.
Access to the deep and alternative pools of capital relative to other African markets.
Keep African companies on the African continent.
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Primary Listing on the JSE
Must meet all the initial listings criteria – Main Board or AltX
Prepare pre-listing statement/prospectus – fully compliant with JSE requirements
Financial information must be prepared in accordance with IFRS
If it is a mining/exploration company – prepare CPR that complies with SAMREC
CPR will be reviewed by the JSE’s reader panel
JSE will be the primary regulator going forward – applicantmust comply with all JSE listings requirements
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Is it listed on a recognised exchange?
Must meet all the initial listings criteria – Main Board or AltX
Prepare pre-listing statement/prospectus – compliant with JSE requirements
The JSE will accept extracts of the financial information if it has been prepared in accordance with IFRS
The JSE will not insist on the financial information being signed-off/audited again for purposes of the listing documentation
Non-IFRS numbers – discuss with JSE – recon to IFRS
The JSE will not insist on a new CPR if it is a mining/exploration company and it has prepared a CPR within the last six months that complies with SAMREC/JORC/NI 43-101
Secondary Listing already listed on another exchange
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CPR will not be reviewed by the JSE’s reader panel
CPR must be included and there must be a statement by the competent person that there has been no material changes
If it is listed on a recognised exchange then that exchange will take the lead in the enforcement of listings requirements on a continuing basis
Secondary Listing already listed on another exchange
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Must meet all the initial listings criteria – Main Board or AltX
Prepare pre-listing statement/prospectus – compliant with JSE requirements
Financial information must be prepared in accordance with IFRS
Non-IFRS numbers – recon to IFRS
Financial information must be signed-off/audited for purposes of the listing documentation
CPR must be prepared if it is a mining/exploration company that complies with SAMREC/JORC/Canadian 43-101
JSE’s readers panel must review and sign-off on CPR
If it is listed on a recognized exchange then that exchange will take the lead in the enforcement of listings requirements on a continuing basis
Secondary Listing not listed on another exchange
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Recognised Exchanges
Main Board
LSE Main Board – regulated by the UKLA
Australian Stock Exchange
Toronto Stock Exchange – Main Board
AltX
LSE Main Board – regulated by the UKLA
AIM
Toronto Stock Exchange – Main Board
Australian Stock Exchange
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Dual Listing AltX and AIM
AIM
• Primary regulator
• Sponsor
• Profit forecast
• DIP
• Fungibility
• SARB
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Conclusion
Straight-forward strategic approach: what do the issuer and the investor want?
AltX launched in response to identified market need – will continue to grow and develop the market
No of initiatives in the pipeline for 2008:
• Promotion of cash-settled future on AltX 15 Index
• Investigation into launch of AltX 15 exchange traded fund (ETF)
• Business development, business development, business development: Local and International (including focus on Africa)