JSE Securities Exchange South Africa has launched its new Sets trading system, supplied by the London Stock Exchange on an application service provider basis.
JSE market participants in South Africa can access the new trading system, which is hosted in London, via a dedicated communications link between Johannesburg and London.
The two exchanges signed a deal in April 2001, under which LSE will provide and tailor JSE Sets specifically for the South African market. The initial five year agreement covers ongoing technical support for the JSE and its market participants, and future trading system upgrades and enhancements on behalf of JSE.
Leanne Parsons, the JSE's director of strategy, says: "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...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."
In a separate announcement, the London Stock Exchange and the JSE have also signed a 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 say they 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.