| Johannesburg Stock Exchange |
Article Index for Johannesburg |
Shopping Johannesburg |
Website Links For Johannesburg |
Information AboutJohannesburg Stock Exchange |
|
The JSE Securities Exchange, previously known as the '''Johannesburg Stock Exchange''', is South Africa 's only Stock Exchange . It is located in Johannesburg , and ranks as Africa 's biggest stock exchange. Following the discovery of Gold in the Witwatersrand in 1886, investors required a facility through which to buy and sell Shares in the newly-formed Mining and financial companies. Benjamin Woollan founded the JSE on 8 November 1887 in order to satisfy this need. In 1963 , the JSE was admitted as a member of the Federation International Bourses De Valeurs (FIBV), and appointed its first independent businessman as Chief Executive Officer . In 1993 , the JSE became an active member of the African Stock Exchanges Association . ABOUT THE JSE The JSE was established on 8 November 1887. It governed externally by the Stock Exchange Control Act, 1985 (Act 1 of 1985), Stock Exchange Control Amendment Act, 1996 (Act 71 of 1996) and internally by extensive rules. The JSE provides a market where securities can by 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 may not number less than eight and not more than 11) 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 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 makes use of fully automatic electronic trading on the JET System (Johannesburg Equities Trading). The System is an order-driven automated trading system acquired from the Chicago Stock Exchange, which has successfully installed the system at several other exchanges around the world. The System was modified to suit the JSE's specialized needs. The order book is organized on the principle of "price/time" priority where orders registered in the book are ranked first at the best price and then in time sequence of the entry. The JET System has already resulted in significant improvements in transparency, price formation liquidity and cost of trading on the JSE. In August 1997, the JSE launched the real-time Stock Exchange News Service (Sens) to enhance the 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 services. A Memorandum of Understanding was signed between the banks (represented by BankServ) and the JSE on 2 May 1996, to establish an electronic settlement system for the South African equities market. Known as STRATE (Share Transactions Totally Electronic), this development will be enabled through the dematerialization of equity scrip in a Central Securities Depository. This will facilitate settlement and the transfer of ownership by electronic book entry. The electronic system is vital to enhance the security of settlement in the market and bring South Africa in line with international practice. SEE ALSO EXTERNAL LINKS |
|
|