Major changes coming to the JSE

 ·19 Mar 2024

The Johannesburg Stock Exchange (JSE), Africa’s largest bourse, said it’s working with Amazon Web Services to overhaul its over 30-year-old broker-dealer administration system.

JSE CEO Leila Fourie said the deal is a step toward partnering with a company that’s collaborating with some of the world’s biggest stock markets, such as the US’s Nasdaq and the London Stock Exchange.

“This is the first stage in this relationship,” Fourie said in an interview on Monday. “We are of course, in discussions with them on other potential solutions.”

The deal, Fourie said, is part of a strategy to form technology partnerships, which have included setting up a carbon-trading market and a private placement platform as the exchange tries to make itself more competitive and to capture more business from other African countries.

“We have to modernise our technology,” she said. “We feel that building new solutions from the ground up is slow and lumbering, and we want to be agile.”

The JSE gained as much as 5% in Johannesburg, the most since 23 August, after the company said annual net income rose 11%.

Operating income grew by 6.9% to R2.9 billion, supported by a 15.6% increase in revenue from Information Services and a 20.2% increase in revenue from JSE Investor Services.

In line with its strategy, the group also increased its proportion of revenue derived from non-trading activity, totalling R954 million.

“We continue to invest in defending our core trading activity while building new services across asset classes and in private capital raising, Information Services and JSE Investor Services.

“This enabled non-trading income to increase to 36.8% (2022: 34.6%) of operating income in line with our long-term strategy,” said Fourie.

“We launched new partnerships to enable us to rapidly innovate in data services, private markets, carbon trading and a modernisation of our broker-dealer accounting (BDA) system, which will ensure the JSE maintains its leading position among emerging market exchange operators,” she added.

Reported with Bloomberg

Read: JSE hikes dividend amid double-digit profit growth

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