WEF Report 2011-2012: South Africa boasts best regulation
of securities exchanges
September 09, 2011
Johannesburg, 8 September 2011 – The latest World Economic
Forum (WEF) Global Competitiveness report ranks South Africa first out of 142
countries for its regulation of securities exchanges. This is the second
successive year that South Africa has achieved this ranking and, together with
several other elements of the report, suggests that the country’s exchange is a
sound environment in which to invest.
South African standards of corporate governance are highly ranked – the
country achieved first place for strength in accounting and auditing standards
(as last year), second place for efficacy of corporate boards and third place in
protection of minority rights (both from sixth in 2010). Its credibility as an
investment destination is also boosted strongly by the soundness of its banks,
for which the country achieved a second place ranking (also from sixth). South
Africa ranks tenth for the strength of investor protection (same as in 2010).
“In a globally competitive environment, markets with strong regulation, solid
infrastructure and thriving institutions will be better positioned to attract
sustainable capital flows. South Africa's ranking as the world's best regulated
financial market for the second consecutive year is also a testament the JSE and
Financial Services Board (FSB)’s sound working relationship," says Russell
Loubser, CEO of the JSE.
The JSE is accountable to the FSB for the regulation of its markets, market
integrity and investor protection.
Overall South Africa moves up by four
places to attain fiftieth position this year, remaining the highest-ranked
country in sub-Saharan Africa and the second placed among the BRICS economies
Released annually in September, the report rates countries according to 12
pillars or sets of criteria. This includes competitiveness in terms of quality
of infrastructure and institutions, efficiency, market sophistication as well as
capacity for innovation. Regulation of securities exchanges falls under the
eighth pillar for financial market development.
Other rankings that
demonstrate the efficiency of South Africa’s financial markets include:
financing through the local equity market at fourth and availability of
financial services at third (both from seventh last year).
“The recent economic crisis has highlighted the central role of a sound and
well-functioning financial sector. Our performance here is encouraging and
demonstrates high confidence in South Africa’s financial markets at a time when
trust is only slowly returned to many other parts of the world,” adds Loubser.
To view or download the full report, please visit http://www.weforum.org
Issued on behalf of:
CEO, JSE Ltd
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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, commodities derivatives
and interest rate instruments. The JSE Ltd offers the investor a 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