1. Copyright© JSE Limited 2005 www.jse.co.za JSE – Africa’s premier exchange JSE MARKET COMMUNICATION SESSION 06 August 2008

2. © 2 DERIVATIVES REPLACEMENT SOLUTION AGENDA Results of 02 August Dress Rehearsal Status and Planned Way Forward Questions

3. © 3 DERIVATIVES REPLACEMENT SOLUTION Results of 2 August Dress Rehearsal ED Market 350 unique trading and clearing users 8 information subscribers 9 API software vendors across multiple members using conformed applications AD Market 290 Unique users logins 8 information subscribers 10 API software vendors across multiple members using conformed applications Trading volumes (orders / deals) were roughly double of a normal production day in each market

4. © 4 DERIVATIVES REPLACEMENT SOLUTION Results of 2 August Dress Rehearsal Issues found on ED Market #IssueWhat caused this issue?How will this issue be fixed? 1. Timeout (During the 02 August 2008 dress rehearsal this occurred 3 times on EDM) The issue is brought about when there is more than 1 timeout item to be cancelled at exactly the same time. This causes the trading engine to go into a loop. After this no further messages will be handled by the trading engine. During the 02 August 2008 dress rehearsal this occurred twice in the continuous trading phase and in the auction period. The timeout item is dealt with at the time of cancellation and removed from the list directly. This version of the code was deployed during the dress rehearsal – and the error did not re- occur. 2.Response ProblemIt was noted in tests conducted after the dress rehearsal that the screen update queue grows when sending display updates to information vendors. The code used in recreating the problem was the version of code complied with the optimization switch disabled. When recompiling the code with the compiler update issued by Microsoft, and thus allowing us to recompile the code with the optimization switch re-enabled, we found that this screen update queue no longer appears.

5. © 5 DERIVATIVES REPLACEMENT SOLUTION Results of 2 August Dress Rehearsal Issues found on AD Market #IssueWhat caused this issue?How will this issue be fixed? 1.Timeout The issue is brought about when there is more than 1 timeout item to be cancelled at exactly the same time. This causes the trading engine to go into a loop. After this no further messages will be handled by the trading engine. The timeout item is dealt with at the time of cancellation and removed from the list directly. This version of the code was deployed during the dress rehearsal – and the error did not re-occur. 2. APD Market failed to move from the open order period into continuous trading An invalid dealer code was received by the trading engine and a fatal error occurred when the trading engine attempted to read and process these connection details A further open order period scheduled after this failure completed successfully. Code has been put in place to guard against badly formatted messages. 3. MSMQ’s build-up resulted in multiple market announcements sent A setup issue at the JSE resulted in a number of messages queued in the Microsoft message queuing mechanism to be released upon the market startup on the day of the dress rehearsal Microsoft Message Queuing configurations have been verified and tested.

6. © 6 DERIVATIVES REPLACEMENT SOLUTION Results of 2 August Dress Rehearsal Issues Highlighted in ED Checklists −Autosave of windows only functional on selected windows −Auto-update in the trades file : If you double click on a trade in order to perform a function and the trades window updates, the highlighted trade may not be the trade originally selected −Popup messages when loading clients should not appear on every terminal −Separate deal tickers for APD and EDM −Colours for buys and sells in ticker as per market ticker −Need to be able to sort per code or full name in quick reference boxes −Some Subscription groups were unsubscribed on the day

7. © 7 DERIVATIVES REPLACEMENT SOLUTION Results of 2 August Dress Rehearsal Issues Highlighted in AD Checklists −the sort/filter criteria on any of the files ( trades, various positions, orders etc) does not save when you close the window resulting in the user having to resort/filter each time the view is opened −the deal ticker does not include client code and/or sub account −when loading a “double”, can only insert single quantity −same request as EDM, require sort functionality on the “Prin” quick reference box −Various Subscription groups or messages, particularly 36 (full file download) were unsubscribed on the day −When options were exercise the member including branch office experienced performance issues −The response time of the local machine when the consolidated members position file containing a number of entries was kept open

8. © 8 DERIVATIVES REPLACEMENT SOLUTION Status and Planned Way Forward Major Work StreamsApr 08May 08June 08 July 08Aug 08Sept 08Oct 08Nov 08Dec 08 JSE TINT Final Regression Testing and UAT CM Parallel Run Checkpoint and Comms Refresher Training 1 st Internal Dress Rehearsal Code Change & Regr Testing 2 nd Internal Dress Rehearsal Checkpoint and Comms Combined Friendly DR FCO Pre Go-Live Parallel Run ED ED DR’s Pre Go-Live Parallel Run AD FCO AD DR’s ED Contingency 19 May – 30 Jun 7 21 25 2 23 cont 25 Cont 18 20 12 19 4 18 19 2 2 18 01 - 11 (EDM) 1 - 15 16 3 - 10 6 - 18 Post go live Par. Run Post go live Par. Run 10 - 20 Cont 21 - 25 (APD) Prep. 15

9. © 9 DERIVATIVES REPLACEMENT SOLUTION Status and Way Forward Testing planned by the JSE prior to the 16 August 2008 Dress Rehearsal Testing of auction (EDM) and open order (APD) periods in simulation environment Stress testing of trading engine using isolated simulation environment Stress testing of trading engine using simulation environment with selected user participation

10. © 10 DERIVATIVES REPLACEMENT SOLUTION Status and Way Forward Additional Testing requiring user involvement Inclusion of all AD Participants in 16 August Dress Rehearsal Test the auction (EDM) and open order (APD) periods with full market participation −EDM – 12 August 2008 – Pre-production environment (IP 10.3.5.131 Port 2003) −17h00 - Market in download only – all users may login −18h20 – All ALSI expiries move into opening auction −18h30 – ALSI opening auction closes, all instruments move into continuous trading −18h50 – EDM Market closes −APD – 12 August 2008 – Pre-production environment (IP 10.3.5.131 Port 2210) −17h00 - Market in download only – all users may login −18h20 – All Agricultural instruments move into Open Order period −18h29 – Open Order period closes −18h30 – All instruments move into continuous trading −18h50 – APD Market closes

11. Copyright© JSE Limited 2005 www.jse.co.za JSE – Africa’s premier exchange Questions? Refer all queries to: Derivative_info@jse.co.za

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