POSSIBLE COMPETITION FOR THE JSE?
We saw good results from the JSE with HEPS up 13.3%. The question here is about potential competition. The Financial Services Board ( FSB) has received a few requests for exchange l icences but it will be very tough to compete with an entrenched exchange such as the JSE. That said, I spoke to a few brokers regarding this, and they said they’d certainly do the tech work required to offer trading on a new exchange if it signif icantly reduced their costs. Fees for the JSE (which have been reduced) are the biggest expense for any stockbroker and if a new exchange can markedly reduce those fees, brokers are very interested. The bigger question is what stocks will be trading on any new exchange – it would have to offer a signif icant portion of JSE-listed shares or it will be a non-starter.