Other guests included Governor Tito Mboweni from the South African Reserve Bank; Britain's Deputy Prime Minister, John Prescott; JSE Board members; and the London Stock Exchange's Deputy CEO, Martin Wheatley and Deputy Chairman, Ian Salter.
JSE SETS is being supplied by the London Stock Exchange on an Application Service Provider basis, and has been running in live operation since Monday 13 May.
Since then, JSE market participants in South Africa have accessed the new trading system, which is hosted in London, via a dedicated communications link between Johannesburg and London.
The agreement between the London Stock Exchange and the JSE highlights how exchanges can work together more closely without having to tackle the legal, regulatory and cost issues involved with cross-border corporate transactions.
Clara Furse, the Exchange's Chief Executive, said: "This is an exciting development for the London Stock Exchange, both because it underlines the attractiveness and versatility of our technology, which we will extend to other customers, and because JSE is a business partner with whom we can identify and develop new business opportunities."
Key features of the deal, which is initially for five years, include:
- Provision of JSE SETS, a version of the London Stock Exchange's world-class SEQUENCE technology, tailored specifically for the needs of the JSE;
- Ongoing technical support for the JSE and its market participants; and
- Future trading system upgrades and enhancements on behalf of the JSE.
The agreement gives the JSE world class trading system technology at a competitive price. The scalability of the new system will cater for future growth on the JSE's markets and provide the flexibility to add functionality as the JSE's, and JSE market participants', requirements change.
Leanne Parsons, the JSE's Director of Strategy, said:
"The JSE will remain a separate entity but it will utilise a platform that is used every day in the largest equities exchange in Europe. Everything we do is aimed at increasing liquidity and providing transparent price information. Providing more in-depth price information - as JSE SETS will do - improves efficiency and leads to stronger trade. The more transparent and liquid the market, the more investors are willing to participate."
Separate Business Partnership
The London Stock Exchange and the JSE have also put in place a separate business agreement covering dual listing for issuers, remote access for JSE and Exchange member firms, and the marketing and sale of each other's market information.
Work is well underway on these elements of the business agreement and both the London Stock Exchange and the JSE will focus on delivering them over the coming months, as well as exploring other potential areas of business co-operation between the South African growth market and AIM.
