JSE Limited
From MarketsWiki
| JSE Limited | |
| |
| Founded | 1887 |
|---|---|
| Headquarters | Johannesburg, South Africa |
| Key People | Russell Loubser, CEO; Humphrey Borkum, chairman |
| Products | Cash equities and exchange-traded funds, equity and agricultural futures and options |
| Web site | http://www.jse.co.za/ |
JSE Ltd, formerly known as the Johannesburg Stock Exchange, is an electronic multi-asset class platform offering trading, clearing and settlement of cash equities, equity and agricultural derivatives and interest-rate products. JSE demutualized in 2005 and listed on the main board of its own exchange in June 2006.
The group expanded into derivatives with the 2001 acquisition of the South African Futures Exchange (Safex), and overtook the National Stock Exchange of India in 2007 to become the world’s largest platform for single-stock futures in 2007[1]. The Safex brand is retained for agricultural and financial futures and options, including its benchmark white maize contract.
History
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The Johannesburg Stock Exchange was founded in 1887, providing a listings platform for companies in the burgeoning gold-mining business, changing its name to the JSE Securities Exchange South Africa in November 2001 following its acquisition of the Safex in the same year.
The mutually-owned group started its conversion to a listed company in 2000, and was converted into a public unlisted company on July 1, 2005, changing its name to JSE Limited. It listed shares on the main board in 2006.
The exchange closed its trading floor on June 7, 1996, and replaced its electronic system with the London Stock Exchange’s SETS platform in 2002. The main equities board was supplemented with the AltX exchange for small and medium-sized companies in 2003, and the Yield-X platform for interest-rate products was added in 2005[2].
The Safex and its clearinghouse were established by 21 banks in September 1988, and officially licensed as a derivatives exchange trading equity index products on August 10, 1990, with non-residents permitted to trade the following year. Options were launched in 1992, with agricultural products started in 1995[3]. JSE acquired the business from its owners for R152m on August 6, 2001, two years after a plan to merge the two exchanges collapsed.
Product Development
Cash equity trading remains the JSE's largest business segment, accounting for 21.4 per cent of revenues in 2006, with equity derivatives adding 13.7 per cent and the agricultural complex a further 6.4 per cent.
The single-stocks futures complex has expanded into one of the world's largest, overtaking the National Stock Exchange of India in volume terms at the start of 2007 as a mix of aggressive marketing to retail and wholesale clients and regulatory changes helped business triple in both 2005 and 2006, with open interest rising eight-fold. The small size of the JSE's contracts relative to rivals leaves it ranked sixth in notional value[4].
References
- ↑ 2007 Market Highlights. WFE. Retrieved on February 11, 2008.
- ↑ Official History. JSE. Retrieved on December 12, 2007.
- ↑ Official History. Safex. Retrieved on December 12, 2007.
- ↑ IOMA Derivatives Market Survey 2006. World Federation of Exchanges. Retrieved on December 14, 2007.
