JSE's new Equity Trading Platform in SA after Decade in
July 02, 2012
Move marks new era for
Johannesburg 2 July 2012 – The
Johannesburg Stock Exchange (JSE) celebrates the start of a new era for its
equity market today with the launch of equity trading platform Millennium
Exchange™, developed by technology solutions provider MillenniumIT. The day also
marks the moving of the platform from London, where the trading engine has been
situated for ten years, to the JSE building in Johannesburg. These changes are
aimed at enhancing operational efficiencies for market participants, who are
expected to benefit from executing transactions almost 400 times faster than the
present trading solution.
The platform is housed within the JSE’s recently
completed new state of the art data centre based on Tier 3 specifications and is
designed to ensure 99.98% availability.
The seamless migration from the
previous TradElect platform follows Borsa Italiana’s identical switch last week.
As with the JSE, this move was successful and followed extensive testing and
consultation with stakeholders.
Leanne Parsons, Director of the JSE’s
Equity Market, comments: “As we have seen with the Borsa Italiana migration last
week and similar migrations during the past year, the new platform provides
exceptional levels of performance, functionality and capacity. The JSE’s move to
the new equity system, which we have nicknamed Project Jaya meaning ‘victory‘ in
the language of Sri Lanka, is a victory for the market.”
The move could
not have happened without effective cooperation between the exchange and all its
clients, says Parsons. “We would like to extend our sincere appreciation and
thanks to all our clients for their efforts and support.”
that the adoption of Millennium Exchange could have a significant impact on
trading volumes by attracting a greater share of high frequency trading when
collocation and the appropriate billing models are in place.
volumes increased significantly when the JSE adopted trading platform JSE SETS
in 2002, and climbed again when the exchange moved to the present trading
platform JSE TradElect in 2007. JSE TradElect was licensed from the London Stock
Exchange and maintained and operated by the London bourse. "There is anecdotal
evidence to suggest that when exchanges increase their trading speeds they also
boost levels of trading. This is important in order to deepen a market," adds
Parsons explains that one reason for the decision to relocate the
trading engine to Johannesburg was the increased operational stability that this
move would offer. "The handful of incidents that we have had requiring the
equity market to be halted, have been related to our international connectivity
links. Clearly these have had reputational impacts. By moving the engine to
Johannesburg, we eliminate this problem and are able to offer our clients
improved service availability and stability."
MillenniumIT, which has
over a decade of experience in building technology solutions for the capital
markets, is a wholly-owned subsidiary of the London Stock Exchange Group (LSEG)
and is based in Sri Lanka. Millennium Exchange is the company's flagship product
with 14 installations live worldwide (excluding the JSE) and is known for its
speed and scalability.
“We are very pleased that Millennium Exchange is
now live at JSE, South Africa's only full service securities exchange.
Millennium Exchange is a highly flexible and scalable next generation trading
platform that offers ultra-fast order processing capabilities. This will enable
JSE to increase its trading volumes at low cost and provide its customers with
an unbeatable trading experience in terms of speed, efficiency and technology,”
comments Tony Weeresinghe, CEO of MillenniumIT and Director of Global
Development at the LSEG.
Speed is becoming increasingly important in the
exchange industry as exchanges cope with the rapid rise of automated trading.
Those exchanges that have trading systems with the lowest latency – the time
between when an order is received, processed and acknowledgement sent – will
retain and grow market share.
In future, the JSE will manage and operate
the trading engine itself. This allows the JSE to grow trading volumes and
contain trading software costs.
Note to Editors
The move of the
trading system to Johannesburg has been welcomed by market participants.
"The Millennium IT system is the way forward and puts SA on par globally
with multiple other markets. It will not only be faster but given the broader
global user base it should be easier to support and for new users to integrate
it into their platforms. The JSE handled the migration well, with no deadlines
being missed – it is the 2nd of July today and we are going live," says
John Slettevold, Head of Equities, UBS South Africa.
migration was handled professionally with all firms participating in the testing
phases over the last few months to ensure that the system delivers as well as
integration into downstream internal systems,” says Ashvin Mancha, CEO
“It was really an important step to bring the
trading engine back to South Africa as it allows us to have control of our own
trading engines and the system will be much faster. Location and speed is
everything and we could only but benefit by having it right here,” says
Erica Bruce, Director of Navigare.
FURTHER INFORMATION PLEASE CONTACT:
Tel: +27 11 463 2198
Cell: +27 82 925 8806
Corporate Communications Consultants
11 463 2198
Cell: +27 72 921 3520
Leanne Parsons: Director of the Equity Market
Tel: +27 11 520 7340
As South Africa’s only full service securities exchange,
the JSE connects buyers and sellers in four different financial markets, namely
equities, equity derivatives, commodity derivatives and interest rate products.
The JSE Ltd offers the investor a truly first world trading environment, with
world class technology, surveillance and settlement in an emerging market
context. It is amongst the top 20 largest equities exchanges in terms of market
capitalisation in the world. In terms of derivatives, the JSE is currently
ranked the 20th largest exchange by the Futures Industry Association (FIA).
For further information, please visit www.jse.co.za