WEF Competiveness Report 2010-2011: South Africa boasts best regulation of securities exchanges

September 14, 2010


 

Johannesburg, 13 September 2010 – The Latest World Economic Forum (WEF) Competiveness report ranks South Africa 1st out of 139 countries in for its regulation of securities exchanges. This year South Africa moves up from 2nd place overtaking Sweden for the top position.

“We are very pleased with this achievement, which acknowledges the JSE’s record in terms of regulation and surveillance. This ranking also sends a very good message about investing in South Africa,” says Russell Loubser, CEO of the Johannesburg Stock Exchange (JSE), South Africa’s only securities exchange “It is a testament to the effective working relationship between the JSE and the Financial Services Board (FSB).”

The JSE is accountable to the FSB for the regulation of its markets, market integrity and investor protection. The two organisations work closely together.

A well-regulated securities exchange is especially important to international investors post the global financial crisis. In the midst of the crisis, unlike many exchanges, the JSE did not ban short selling nor introduce circuit breakers.

Released on 9th September, the 2010-2011 WEF Competiveness Report ranks countries according to 12 pillars or sets of criteria. The study rates a country’s competiveness according to quality of infrastructure and institutions, efficiency, market sophistication as well as capacity for innovation. Regulation of securities exchanges falls under the 8th pillar for financial market development.

South Africa fairs well in terms of financial market development criteria with an overall 9th place ranking. Within this set of criteria, other rankings that demonstrate that efficiency of local financial markets include; financing through the local equity market at 7th, availability of financial services at 7th, soundness of banks at 6th and legal rights of investors at 6th.
To view or download the full report, please visit http://www.weforum.org  
  

ENDS
Issued on behalf of:

Russell Loubser
CEO
JSE Ltd
Tel: 011 520 7001

For media enquiries please contact:

Victoria Williams Roz Thomas
Tel: 011 463 2198 or Tel: 011 463 2198
Cell: 072 452 1772 Cell: 082 925 8806
Email: victoria@corpcom.co.za   Email:  rozt@corpcom.co.za

About JSE Limited
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. For further information, please visit www.jse.co.za