JSE releases 6-month figures

SPOTLIGHT: FIRMS’ BEHAVIOURS RAISED QUESTIONS

Exchange chief says it takes its role very seriously and is always monitoring.

certainly a much better first half than last year.”

The increase in trading activity was, however, somewhat clouded by the number of serious issues relating to listed companies that the JSE has faced in recent months.

The accounting fraud at Steinhoff, the questions around valuations in the Resilient group of companies and recent issues at EOH have placed a lot of attention on the JSE’s ability to successfully regulate listed entities.

The exchange has received a lot of criticism from investors and market watchers who feel these are issues that the JSE should have picked up on sooner. Newton-King accepts that these concerns should not simply be dismissed.

“I completely understand why people would be looking for answers,” Newton-King said. “When the likes of a Steinhoff shock comes out of the blue, investors will ask how this could have happened in an environment which is properly regulated.”

This has, without doubt, also had an impact on the exchange’s reputation.

“Even if there was a Steinhoff failure and it had nothing to do with us – even if you couldn’t question a regulatory or disclosure standard – people would still feel that there is something more someone should have done,” Newton-King acknowledged.

With regard to trading conduct and allegations of market manipulation, she said the JSE takes its role very seriously, and is monitoring activity.

“We have taken a very hard look at what has happened, and where there might be areas that we need to increase our listing requirements, or change disclosure requirements in certain areas,” said Newton-King.

Steinhoff has had an impact on our reputation.