POS­SI­BLE COM­PE­TI­TION FOR THE JSE?

Finweek English Edition - - SIMON SAYS -

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.

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