1. 1 www.jse.co.za Copyright© JSE Limited 2009 www.jse.co.za The JSE – 125 years of history and progress 29 August 2012, by Monica Ambrosi

2. 2 www.jse.co.za A bit of history – where we were…

3. 3 www.jse.co.za A bit of history – where we are...

4. 4 www.jse.co.za History of the JSE 1887: JSE founded In 1995: Open outcry floor trading; settlement 7 days later or more Equities only 1996: Centralised order book introduced 1999: STRATE formed (dematerialisation) 2001: Acquired SA Futures Exchange (SAFEX) 2002: Move to guaranteed T+5 settlement of equity trades 2002: Adopted LSE trading platform 2005: Exchange demutualised 2006: JSE listed on its own exchange 2009: Acquired the Bond Exchange of South Africa (BESA) 2012: New equities trading platform introduced

5. 5 www.jse.co.za The JSE in the local economy Ratio reflects size of stock market relative to the economy The JSE is 125 years old and has grown to a significant size (ratio of 3.38 in 2009) The JSE is a conduit for domestic and foreign savings in the economy Source: World Bank Note: ( ) refers to World Bank income group classification

6. 6 www.jse.co.za Comprehensive offering LISTING TRADING CLEARING SETTLEMENT Interest Rate Products Commodity Derivatives Equities Equity Derivatives Market Surveillance Information Products

7. 7 www.jse.co.za Market development & product innovation Shape development of local capital markets and influence relative policy environment Equities market: New products (ETFs, ETNs) New customers (broaden international client base) Equity derivatives: Bring trading onto central order book Interest rate market: Grow the interest rate derivatives offering Enhance corporate bonds offering Commodity derivatives market: Trading of other African derivatives

8. 8 www.jse.co.za The JSE within the global context Source: World Federation of Exchanges

9. 9 www.jse.co.za The JSE within the global context NYSE Group Tokyo SE Group Bombay SE TMX Group London SE Group Hong Kong Exchanges ASX NSE India Shanghai SE Deutsche Börse Egypt SE JSE Bursa Malaysia OMX Nordic Source: World Federation of Exchanges; data for May 2012

10. 10 www.jse.co.za The JSE within the global context GFC Non-resident investors are key participants in local equity and bond markets These portfolio flows, although volatile, are critical for the Balance of Payments of the economy The value of bond trading recorded on the JSE is the 4 th highest globally (y-t-d May 2012 $1.2 trillion) Sources: SARB & JSE

11. 11 www.jse.co.za Thank you