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JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange) is the largest
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for t ...
in
Africa Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
. It is located in
Sandton, Johannesburg Sandton is an upscale commercial and residential district north of the city of Johannesburg, South Africa. It forms part of the City of Johannesburg Metropolitan Municipality. The name of the city came from the combination of two of its suburbs, ...
,
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring coun ...
, after it moved from downtown Johannesburg in 2000. In 2003 the JSE had an estimated 473 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 March 2022, the
market capitalisation Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...
of the JSE was at US$1.36 trillion.


History

The discovery of
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile ...
on the
Witwatersrand The Witwatersrand () (locally the Rand or, less commonly, the Reef) is a , north-facing scarp in South Africa. It consists of a hard, erosion-resistant quartzite metamorphic rock, over which several north-flowing rivers form waterfalls, which ...
in 1886 led to many mining and financial companies opening and a need soon arose for a stock exchange. The first share transactions on the Rand took place in a rustic canvas tent, with trade taking place on Sundays, as this was the only day when mining was not allowed, owing to a strictly enforced regulation prohibiting the entry of African workers to the gold reefs. The ''Johannesburg Exchange & Chambers Company'' was established by a
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
businessman,
Benjamin Minors Woollan Benjamin ( he, ''Bīnyāmīn''; "Son of (the) right") blue letter bible: https://www.blueletterbible.org/lexicon/h3225/kjv/wlc/0-1/ H3225 - yāmîn - Strong's Hebrew Lexicon (kjv) was the last of the two sons of Jacob and Rachel (Jacob's thir ...
and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on 8 November 1887. What immediately gave the JSE a clear advantage over exchanges such as Kimberley, Barberton, and, most importantly, London, was that listing of companies for a quotation on the Official List of the JSE was an easy and relatively cheap procedure. This relatively simple and non-restricting nature of the early Exchange promoted a wave of initial registrations on the Official List, with 68 companies by the end of November 1887. The Official List further expanded to more than 300 companies by the end of January 1890. 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 or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
, 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 ( , , ; Zulu language, Zulu and xh, eGoli ), colloquially known as Jozi, Joburg, or "The City of Gold", is the largest city in South Africa, classified as a Megacity#List of megacities, megacity, and is List of urban areas by p ...
. 1993 saw the JSE become an active member of the African Stock Exchanges Association. After 108 years, the
open outcry Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orde ...
system of trading was changed to an electronic system on 7 June 1996. In September 2000, the Johannesburg Securities Exchange moved to its present location in
Sandton, Gauteng Sandton is an upscale commercial and residential district north of the city of Johannesburg, South Africa. It forms part of the City of Johannesburg Metropolitan Municipality. The name of the city came from the combination of two of its suburbs ...
at the corner of Maude Street and Gwen Lane. It adopted the JSE Securities Exchange as its new official name. In 2001 an agreement was struck with the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
enabling cross-dealing between the two bourses and replacing the JSE's trading system with that of the LSE. In 2009 the JSE acquired the Bond Exchange of South Africa for R240 million and rebranded it the JSE debt market adding South African government and corporate bonds as well as interest rate derivatives to its product set. On 18 June 2012, the JSE became a founding member of the United Nations
Sustainable Stock Exchanges initiative The Sustainable Stock Exchanges (SSE) initiative promoting corporate investment in sustainable development. It is a project of the United Nations (UN) co-organized by the United Nations Conference on Trade and Development ( UNCTAD), the United ...
on the eve of the United Nations Conference on Sustainable Development (Rio+20). On 14 April 2014, the JSE re-branded to demonstrates the bourse's identity as a modern African marketplace that connects investors to growth opportunities not only in South Africa but globally. In May 2022, the JSE became the first exchange to come to market with a new service from provider xyt that would utilize peep group rankings to help trading firms explore market share and examine and view trading interactions and performance. It would be called JSE Trade Explorer.


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. Each year the JSE must apply to the
Minister of Finance A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", ...
for an operating license which vests external control of the exchange in the FSB.


JSE TradElect

The JSE's fully automated (electronic trading) trading system is called the Millennium Exchange, which replaced the JSE TradElect system in 2012, which in turn had replaced the JSE SETS system in April 2007, which had replaced the JSE JET system in May 2002. The change to the Millennium Exchange involved moving the platform from London to a new platform housed in the JSE building in Johannesburg, thus speeding up the execution of transactions. The JSE operates an order-driven, central order book trading system with opening, intra-day and closing auctions.


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 15 October, augmented JSE
listing requirements In corporate finance, a listing refers to the company's shares being on the list (or board) of stock that are officially traded on a stock exchange. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, su ...
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.


Strate

Since its inception over ten years ago, Strate (Pty) Ltd has become the licensed South Africa's 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 fund An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold from other owners throughout th ...
s (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.


Listed companies


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
website A website (also written as a web site) is a collection of web pages and related content that is identified by a common domain name and published on at least one web server. Examples of notable websites are Google, Facebook, Amazon, and W ...
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 0.005787% (excluding VAT) based on the value of the share transactions: **Minimum R10.19 for trades with a value up to R176,000. **Maximum R73.49 for trades with a value over R1,270,000. * FSCA Investor Protection Levy 0.0002% (excluding VAT) on all trades.


See also

* Cibecs (2009) * Diamonds as an investment * Gold as an investment * Investment Analysts Society of Southern Africa * South African Futures Exchange *
List of stock exchanges in the Commonwealth of Nations This is a list of active stock exchanges in the Commonwealth of Nations (Full Members). The Commonwealth of Nations features member-states located on all major continents and represents almost one-third of the Earth's population. Some states ha ...
*
List of stock exchanges This is a list of major stock exchanges. Those futures exchanges that also offer trading in securities besides trading in futures contracts are listed both here and in the list of futures exchanges. There are sixteen stock exchanges in the wor ...
**
List of African stock exchanges There are 29 exchanges in Africa, representing 38 nations' capital markets. 21 of the 29 stock exchanges in Africa are members of the African Securities Exchanges Association (ASEA). ASEA members are indicated below by an asterisk (*). The Eg ...
* South African Mineral Reporting Codes *
South African Institute of Stockbrokers A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks and ...
* South African Institute of Financial Markets *
A2X Markets A2X Markets is a South African stock exchange. It was founded by Sean Melnick, Ashley Mendelowitz and Kevin Brady, individuals with experience in financial markets and technology. Their goal was to create a new South African exchange to bring hea ...


Further reading

*Lukasiewicz, Mariusz. "From Diamonds to Gold: The Making of the Johannesburg Stock Exchange, 1880–1890." ''Journal of Southern African Studie''s 43.4 (2017). pp. 715–732 *Klein, Harry. ''The story of the Johannesburg Stock Exchange: 1887-1947.'' Johannesburg: The Committee of the Johannesburg Stock Exchange. 1948 *Rosenthal, Eric. ''On 'Change Through the Years: A History of Share Dealing in South Africa.'' Cape Town: Flesch Financial Publications. 1968


References


External links

*
JSE Alternative Exchange official website
{{DEFAULTSORT:Jse Limited Johannesburg Securities Exchange Financial services companies established in 1887 Financial services companies of South Africa Stock exchanges in South Africa Economy of Johannesburg Companies listed on the Johannesburg Stock Exchange