Johannesburg Securities Exchange
Encyclopedia
JSE Limited
is the largest stock exchange
in Africa
. It is situated at the corner of Maude Street and Gwen Lane in Sandton, Johannesburg, South Africa
. In 2003 the JSE had an estimated 472 listed companies and a market capitalisation of US$182.6 billion (€158 billion), as well as an average monthly traded value of US$6.399 billion(€5.5 billion). As of 30 September 2006, the market capitalisation of the JSE was at US$579.1 billion. The JSE is presently the 16th largest stock exchange worldwide.
The JSE is planning to create a pan-African exchange by initially enabling investors to trade in shares from Ghana
, Namibia
, Zimbabwe
and Zambia
. Later it intends to expand this across the rest of Africa.
on the Witwatersrand
in 1886 led to many mining and financial companies opening and a need soon arose for a stock exchange.
The Johannesburg Exchange & Chambers Company was established by a London
businessman, Benjamin Minors Woollan and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on November 8, 1887. By 1890 the trading hall became too small and had to be rebuilt but this too was outgrown. Trading then moved into the street. The Mining Commissioner closed off Simmonds Street between Market Square and Commissioner Street by means of chains.
In 1903, a new building was built for the JSE on Hollard Street. It was a storey building that took up an entire whole city block bounded by Fox and Main, Hollard and Sauer Streets.
After World War II
, it became apparent that this building was again inadequate and in 1947 the decision was made to rebuild the stock exchange. It took 11 years before construction began and in February 1961 the second exchange at Hollard Street was officially opened. By 1963, the JSE became a member of the Federation International Bourses de Valeurs (FIBV).
In 1978, the JSE took up residence at 17 Diagonal Street near Kerk Street, Johannesburg
. 1993 saw the JSE become an active member of the African Stock Exchanges Association. After 108 years, the open outcry system of trading was changed to a new era of high-tech computer trading on June 7, 1996.
In September 2000, the Johannesburg Securities Exchange moved to its present location in Sandton, Gauteng
and changed its official name to the JSE Securities Exchange.
In 2001 an agreement was struck with the London Stock Exchange
enabling cross-dealing between the two bourses
and replacing the JSE's trading system with that of the LSE.
The exchange successfully fulfils its main function—the raising of primary capital—by rechannelling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.
The exchange is directed by an honorary committee of 16 people, all with full voting rights. The elected stockbroking members, who cannot number less than eight or more than eleven, may appoint an executive president and five outside members to the committee. Policy decisions are made by the committee and carried out by a full-time executive committee headed by the executive president.
The JSE is governed by its members but through their use of JSE services and facilities, these members are also customers of the Exchange. Although there is only one stock exchange in South Africa, the Stock Exchanges Control Act (repealed by the Securities Services Act of 2004) does allow for the existence and operation of more than one exchange. Each year the JSE must apply to the Minister of Finance for an operating license which vests external control of the exchange in the FSB
.
The JSE TradElect system replaced the JSE SETS system in April 2007. The SETS system replaced the JSE JET system in May 2002.
s.
Strate handles the settlement of a number of securities, including equities and bonds for the Johannesburg Stock Exchange (JSE), as well as a range of derivative products such as warrants, Exchange Traded Funds (ETFs), retail notes and tracker funds. It has now added the settlement of money market securities to its portfolio of services. It provides services to issuers for their investors in terms of the Companies Act and Securities Services Act (SSA), 2004.
is accessible from the front page of the JSE's main website. The Alternative Exchange is known as AltX.
is the largest stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
. It is situated at the corner of Maude Street and Gwen Lane in Sandton, Johannesburg, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
. In 2003 the JSE had an estimated 472 listed companies and a market capitalisation of US$182.6 billion (€158 billion), as well as an average monthly traded value of US$6.399 billion(€5.5 billion). As of 30 September 2006, the market capitalisation of the JSE was at US$579.1 billion. The JSE is presently the 16th largest stock exchange worldwide.
The JSE is planning to create a pan-African exchange by initially enabling investors to trade in shares from Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
, Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
, Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
and Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....
. Later it intends to expand this across the rest of Africa.
History
The discovery of goldGold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
on the Witwatersrand
Witwatersrand
The Witwatersrand is a low, sedimentary range of hills, at an elevation of 1700–1800 metres above sea-level, which runs in an east-west direction through Gauteng in South Africa. The word in Afrikaans means "the ridge of white waters". Geologically it is complex, but the principal formations...
in 1886 led to many mining and financial companies opening and a need soon arose for a stock exchange.
The Johannesburg Exchange & Chambers Company was established by a London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
businessman, Benjamin Minors Woollan and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on November 8, 1887. By 1890 the trading hall became too small and had to be rebuilt but this too was outgrown. Trading then moved into the street. The Mining Commissioner closed off Simmonds Street between Market Square and Commissioner Street by means of chains.
In 1903, a new building was built for the JSE on Hollard Street. It was a storey building that took up an entire whole city block bounded by Fox and Main, Hollard and Sauer Streets.
After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, it became apparent that this building was again inadequate and in 1947 the decision was made to rebuild the stock exchange. It took 11 years before construction began and in February 1961 the second exchange at Hollard Street was officially opened. By 1963, the JSE became a member of the Federation International Bourses de Valeurs (FIBV).
In 1978, the JSE took up residence at 17 Diagonal Street near Kerk Street, Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
. 1993 saw the JSE become an active member of the African Stock Exchanges Association. After 108 years, the open outcry system of trading was changed to a new era of high-tech computer trading on June 7, 1996.
In September 2000, the Johannesburg Securities Exchange moved to its present location in Sandton, Gauteng
Sandton, Gauteng
Sandton is a wealthy area situated within the metro of Johannesburg, Gauteng, South Africa. The name comes from the combination of two of its suburbs, Sandown and Bryanston...
and changed its official name to the JSE Securities Exchange.
In 2001 an agreement was struck with the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
enabling cross-dealing between the two bourses
and replacing the JSE's trading system with that of the LSE.
About the JSE
The JSE provides a market where securities can be traded freely under a regulated procedure. It not only channels funds into the economy, but also provides investors with returns on investments in the form of dividends.The exchange successfully fulfils its main function—the raising of primary capital—by rechannelling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.
The exchange is directed by an honorary committee of 16 people, all with full voting rights. The elected stockbroking members, who cannot number less than eight or more than eleven, may appoint an executive president and five outside members to the committee. Policy decisions are made by the committee and carried out by a full-time executive committee headed by the executive president.
The JSE is governed by its members but through their use of JSE services and facilities, these members are also customers of the Exchange. Although there is only one stock exchange in South Africa, the Stock Exchanges Control Act (repealed by the Securities Services Act of 2004) does allow for the existence and operation of more than one exchange. Each year the JSE must apply to the Minister of Finance for an operating license which vests external control of the exchange in the FSB
Financial Services Board (South Africa)
The Financial Services Board is the government of South Africa financial regulatory agency responsible for the non-banking financial services industry in South Africa. It is an independent body that supervises and regulates the financial services industry in the public interest...
.
JSE TradElect
The JSE's fully automated (electronic trading) trading system is called JSE TradElect. TradElect is operated under licence from the London Stock Exchange. The system was modified to suit the JSE's specific needs. The JSE operates an order-driven, cental order book trading system with opening, intra-day and closing auctions. TradElect provides for the hierarchical organization of the market into segments, sectors and securities.The JSE TradElect system replaced the JSE SETS system in April 2007. The SETS system replaced the JSE JET system in May 2002.
Sens
In August 1997, the JSE launched the real-time Stock Exchange News Service (Sens) to enhance market transparency and investor confidence. Initially, it was optional for listed companies to use the service during its two-month trial period. From October 15, augmented JSE listing requirements oblige companies to disseminate any corporate news or price-sensitive information on the service prior to using any other media outlet. Sens is carried by all the major wire serviceWire Service
Wire Service is an American drama series that aired on ABC as part of its 1956-57 season lineup.-Synopsis:Wire Service focuses on three reporters for the fictional Trans-Globe wire service, which was similar to real-life news wire services such as the Associated Press and United Press International...
s.
Strate
Since its inception over ten years ago, Strate Ltd has become the licensed Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa. Strate's stated core purpose is to mitigate risk, bring efficiencies to South African financial markets and improve its profile as an investment destination.Strate handles the settlement of a number of securities, including equities and bonds for the Johannesburg Stock Exchange (JSE), as well as a range of derivative products such as warrants, Exchange Traded Funds (ETFs), retail notes and tracker funds. It has now added the settlement of money market securities to its portfolio of services. It provides services to issuers for their investors in terms of the Companies Act and Securities Services Act (SSA), 2004.
Hours
JSE's normal trading sessions are from 9:00am to 5:00pm on all weekdays except Saturdays, Sundays and holidays declared by the exchange in advance.Alternative Exchange
The Alternative Exchange is a stock exchange that was founded as a division of the JSE in order to accommodate small- and medium-sized high growth companies. Its websiteWebsite
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
is accessible from the front page of the JSE's main website. The Alternative Exchange is known as AltX.
Ownership
The bourse is operated by JSE Limited, a company that listed on its own main board in June 2006.Fees and Taxes
- Securities Transfer Tax (STT) 0.25%. Applies to share purchases only, not share sales.
- Strate 0.005459% (excluding VATValue added taxA value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
) based on the value of the share transactions:- Minimum R10.92 for trades with a value up to R200,000.
- Maximum R54.59 for trades with a value over R1 million.
- FSBFinancial Services Board (South Africa)The Financial Services Board is the government of South Africa financial regulatory agency responsible for the non-banking financial services industry in South Africa. It is an independent body that supervises and regulates the financial services industry in the public interest...
Investor Protection Levy 0.0002% (excluding VATValue added taxA value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
) on all trades.
See also
- Companies traded on the JSECompanies traded on the JSEThis is a list of companies traded on the JSE. The original compilation of the list was done in February 2006.Note: For companies without a listed external link there is generally plenty of information available at various financial information sites; please see article's External links section...
- Bond Exchange of South AfricaBond Exchange of South AfricaThe Bond Exchange of South Africa Limited is an independent, licensed exchange, constituted as a public company, and responsible for operating and regulating the debt securities and interest rate derivatives markets in South Africa.-History:...
- The South African Futures ExchangeThe South African Futures ExchangeThe South African Futures Exchange consists of a financial markets division and an Agricultural Markets Division - agricultural derivatives....
- Investment Analysts Society of Southern AfricaInvestment Analysts Society of Southern AfricaThe Investment Analyst's Society of Southern Africa is the liaison body for the financial analyst profession in South Africa. It is based in Johannesburg South Africa, with members from Cape Town, Durban and throughout the region.-Membership:...
- Diamonds as an investmentDiamonds as an investment-History:Diamonds have been treasured as gemstones since the ancient times. Popularity of diamonds has risen since the 19th century because of successful advertising in spite of a greatly increased supply. Diamonds are not normally used as a mainline store of value during times of crisis, because...
- Gold as an investmentGold as an investmentOf all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises...
- List of stock exchanges
- List of African stock exchanges