Download - JSE: A New Era
Copyright© JSE Limited 2006 www.jse.co.za
JSE: A New Era
Noah Greenhill
GM: Marketing and Business Development
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Our business 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− Own 11% of Safcom
Settlement− Own 41% of STRATE− Guarantee of equity trades
Information product sales
Technology services
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Opportune environment for listing of JSE
1 July 2005 – demutualised and taxable
5 June 2006 – listed on Main Board
5 June 2006 – implemented Broad-based BEE deal
Good progress in meeting Financial Sector Charter targets
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Key operational highlights – 2005
Higher level of demand for new Main Board equity listings
− 14 new listings (2004: 11)
Record overall JSE equity trading volumes and values
− Average daily value traded up by 24%
− Average daily number of trades up 29%
Zero failed trades for more than 5 years despite increase in volumes
Good performance in equity derivatives
− Average daily number of contracts increased by 35%
− Open interest increased by 29%
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Key operational highlights – 2005
AltX growth – market for small and medium sized companies− Listed 6 new companies
Yield-X – one-stop shop for a wide range of interest rate products
− Launched in February
Revenue from information product sales up
Third round of Socially Responsible Investment Index− Number of successful constituents increases
Ongoing migration of the exchange onto new IT systems − Project Orion a major priority
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JSE equities market capitalisation & liquidity
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Ran
d M
illio
ns
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Per
cen
tag
e
Market Capitalisation
Liquidity
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JSE equities market average monthly value traded & number of trades
Equities: Average monthly value & No. of trades
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2000 2001 2002 2003 2004 2005 2006
Ran
d -
Mill
ion
s
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
No
. of
trad
es
Turnover
Trades
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Equities – Main Board
Good level of demand for equity new listings on the Main Board – 11 YTD
Warrant issues more than doubled in 2006 – 356 YTD
Continued increase in equity trading volumes and values − Average daily value traded up 80% YTD − Average daily number of trades up 65% YTD
Net foreign investment at an all time high – R56.5 billion YTD
Liquidity improved – 46.0% YTD
New inward dual listings
A number of new product launches − eg SATRIX Swix and SATRIX Resi in 2006, ITRIX range
Next steps - Foreign companies, ETFs, African listings, listed company forums- Settlement needs to move from T+5 to T+3 together with a reduction in
costs- Broad-based investor education initiatives to continue with strategic
partners
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AltX
AltX is for small and mid-sized companies
23 companies currently listed
− 8 new companies
− 1 company graduated to the Main Board
− 1 company migrated from Main Board to take advantage of better matched value proposition
17 designated advisors
Directors’ induction programme
Next steps
− More company listings in the pipeline
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Yield-X
Launched February 2005
− new market offering a broad range of exchange traded interest rate derivatives
Gaining market traction
Corporate bonds able to be listed on Yield-X from 1 July 2006
Next steps
- Target retail issuers
- Yield-X upgrade for retail trade to come
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Opportunity - Africa
Dual listing
− Costs
Expand liquidity pool
Access to “new” pool of investors
Access to “new” capital
Access to foreign capital
− Emerging market funds
Arbitrage opportunities
BEE (specifically South Africa)
Copyright© JSE Limited 2006 www.jse.co.za
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