Media Day Presentation July 2012

7/27/2019 Media Day Presentation July 2012

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www.jse.co.za

CopyrightJSE Limited 2009

www.jse.co.za

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


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

A bit of historywhere we were


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A bit of history where we are...


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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


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The JSE in the local economy

0 2 4 6 8

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)

Market capitalisation/GDP ratio (deflated), 2009

Ratio reflects size of stockmarket relative to the economy

The JSE is 125 years old andhas grown to a significant size(ratio of 3.38 in 2009)

The JSE is a conduit fordomestic and foreign savings in

the economy

Source: World Bank

Note: ( ) refers to World Bank income group classification


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Comprehensive offering

LISTING

TRADING

CLEARING

SETTLEMENT

Interest RateProducts

CommodityDerivatives

EquitiesEquity

Derivatives

Market SurveillanceInformation Products
http://www.strate.co.za/


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Market development & product innovation

Shape development of local capital markets and influencerelative 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


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The JSE within the global context

0 4,000,000 8,000,000 12,000,000

NYSE Euronext (US)

NASDAQ OMX

Tokyo SE Group

London SE

Shanghai SE

Hong Kong Exchanges

NYSE Euronext (Europe)

TMX Group

Shenzhen SE

Deutsche Borse

Australian SE

BM&F Bovespa

SIX Swiss Exchange

Bombay SE

National Stock Exchange of India

Korea ExchangeNASDAQ OMX Nordic Exchange

BME Spanish Exchanges

Johannesburg Stock Exchange

MIXEC/RTS

$m

Domestic market capitalisation (equities), May 2012

Casablanca $53.6bnEgyptian $55.9bnMauritius $7.6bn

Source: World Federation of Exchanges


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0

50

100

150

200

250

300

0 1000 2000 3000 4000 5000 6000

Liquid

ity%

Number of listed companies

Istanbul SE

NASDAQ OMXShenzhen SE

NYSE GroupTokyo SE Group

Bombay SE

TMX Group

London SE Group

Hong KongExchanges

ASX

NSE India

Shanghai SE

DeutscheBrse

Egypt SE

JSE

Bursa Malaysia

OMXNordic

Source: World Federation of Exchanges; data for May 2012


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-60,000

-50,000

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

2006 2007 2008 2009 2010 2011 2012

RmNon-resident portfolio capital flows

Shares Bonds

GFC Non-resident investors are key

participants in local equity andbond markets

These portfolio flows, althoughvolatile, are critical for theBalance of Payments of theeconomy

The value of bond trading

recorded on the JSE is the 4thhighest globally (y-t-d May 2012$1.2 trillion)

Sources: SARB & JSE


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Thank you

Documents

Media Day Presentation July 2012