JSE Paid Out Claims After Trading Disruption, Held Reviews

(Bloomberg) -- The operator of Africa’s biggest stock market paid out claims after suffering a delay in trading two months ago that prompted reviews to avoid a repeat of the disruptions.

The claims were “limited,” JSE Ltd. Chief Executive Officer Nicky Newton-King, without giving more details. The results of internal and external reviews of the technical issues that prevented equities and derivative trading for an hour and 45 minutes on Sept. 21 will be presented to the market,  she said in an emailed response to questions.

The JSE is “deeply sorry, as we recognize the importance of market stability and confidence,” Newton-King said Tuesday. “Because we are concerned about any issues affecting the market and the impact this can have, we have had robust and ongoing engagement with our clients and our regulators and continue to do so.”

The companies traded on the exchange have a combined market value of about 12.7 trillion rand ($880 billion), making it among the 20 largest in the world. Its benchmark index has climbed 18 percent this year, exceeding 60,000 points for the first time on Nov. 6. Started in 1887 during Johannesburg’s gold rush, the exchange faces competition from smaller newcomers, with ZAR X, 4Africa Exchange and A2X Markets beginning operations this year in the city. 

A2X Markets hired two JSE employees, including Brett Kotze, who was the head of post-trade services at the exchange and who joined in July. 4Africa Exchange has one ex-JSE employee, hired two years ago, according to CEO Fay Mukaddam. ZAR X CEO Etienne Nel said his firm hasn’t recruited from the JSE.

The implementation of the JSE’s Integrated Trading and Clearing platform next year should help resolve problems it has experienced, the company said. “In the meantime, we have introduced additional checks and balances in our business to minimize the risks of a re-occurrence of these issues,” Newton-King said.

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