The JSE Securities Exchange South Africa exchange IksteInd v' the act of giving one thing and receiv

1
The JSE Securities Exchange South Africa
exchange /Ikst?eInd? / v. the act of
givingone thing and receiving another in its
place The Concise Oxford Dictionary
2
History of the JSE

• 117 years old
• Voluntary association of members
• Independent Board
• Full time executive
• Advisory committees
• 4 markets
• Equities shares, ETFs and warrants
• Financial Derivatives SSF, index derivatives
• Agricultural Products maize, wheat, soya and
  sun flowers
• AltX
• 17th largest equities exchange in world
• Approx 450 equities
• Approx 600 securities
• Liquidity over 38
• Staff
• 240

3
JSE
1995
2004
Staying in the Game

• Open outcry floor trading
• Settlement 7 days later or more
• Delivery of share certificates
• JET and Tricklefeed
• Equities only

• Second fully automated trading in a central order
  book
• Contractual rolling settlement on T5 zero
  failed trades
• Electronic settlement in dematerialised form
• JSE SETS and InfoWiz
• Equities, warrants, derivatives and agricultural
  products

4
JSE

• Recently assessed by FTSE to meet or exceed
  developed market standards
• Free and well developed equities market
• LSE trading platform
• Electronic settlement - zero failed trades
• No Govt interference
• Well regulated
• FSB meets IOSCO principles
• 6th country to sign IOSCO MOU
• Real-time, client level surveillance
• Pioneer in corp gov and combating insider trading
• Listings requirements - UKLA
• Strong enforcement regime
• Fair and non-prejudicial treatment of minorities
• No restriction or penalty on repatriation of
  capital

5
JSE

• Access
• No Excon on foreign investors
• No foreign ownership limits
• No foreign registration process
• Unified, free-floating exchange rate backed by
  liquid and deep sovereign bond market with
  turnover 10 times GDP
• Investibility
• 17th largest equities market in the world
• Marginally smaller than Stockholm
• Larger than 9 other Developed markets
• 10 times larger than New Zealand
• All indices calculated according to FTSE
  methodology
• Top40 Index very liquid and diverse CFTC
  approval

6
AltX Explained

• AltX is the JSEs exciting new market for small
  and medium high growth companies
• BEE companies
• Junior mining companies
• AltX provides an excellent alternative for
  raising capital
• AltX is operated by the JSE
• Exciting partnerships (dti, WBS, IoD)

7
AltX Philosophy Expressed

• Best practice model
• Relationship management, marketing and sales
• Quality controls
• Designated Adviser
• AltX Advisory Committee
• Directors Induction Programme (DIP)

8
Listing Requirements
Altx
Main Board
Listing Requirements
R2 million
R25 million
Share Capital
None
3 Years
Profit history
N/A
R8 million
Pre-tax Profit
10
20
Shareholder spread
100
500
Number of Shareholders
Designated Adviser
Sponsor
Sponsor/DA
Voluntary
Compulsory
Publication in the press
9
Listing Requirements continued
Altx
Main Board
Listing Requirements
2
3
Number of transaction categories
Financial Director
N/A
Special Requirements
R20 000 (including VAT)
0.04 of average market capitalisation with a
minimum of R26 334 and a maximum of R121 700
(including VAT).
Annual listing fee
All directors to attend Directors Induction
Programme
N/A
Education Requirements
10
JSE at a glance

• EQUITIES
• July 2004 Year to date
• Equity Turnover value R71,947m R566,490m
• Equity Volume traded 3,067m 25,786m
• Equity Total Market Capitalisation R1,994.3bn
  R1,994.3bn
• Total Money Raised R1,331m R33,718m
• Liquidity 33.3 37.9
• New Companies listed 0 5
• Number of Companies listed 412 412
• Number of Securities listed 866 866
• Number of Trading days 22 145
• Total value of Kruger coins purchased R2,250,081 R
  44,672,551

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JSE

• Number of Companies / Securities Listed and
  Market Capitalisation
• Month Year to 2003 2002 2001 2000 ended date Ju
  ly 2004 2004
• No of New Listings 0 5 8 9 11 14
• No of Delistings 2 19 54 79 85 66
• Foreign Listings 21 21 21 22 23 24
• Domestic Listings 391 391 405 450 519 592
• TOTAL 412 412 426 472 542 616
• No of Securities Listed 866 866 745 852 1,141 914
• Market Capitalisation 1994,3 1787,2 1584,1 177
  0,7 1551,5
• (RBN at Period)

12
JSE

• Position in the world league as at 30 June 2004
  (as calculated by the World Federation of
  Exchanges)
• JSE Ranking JSE Ranking June 04 2003
• Market Capitalisation 304,722 16 260,748 18
• (Domestic) (USmillion)
• Market Turnover 74,919 22 102,173 23
• (USmillion)
• Liquidity 36.2 37 30.1 35
• Liquidity has been adjusted for OP Trades

13
Information Exchange
Noah Greenhill Manager AltX JSE Securities
Exchange South Africa 27 11 520
7130 or noahg_at_jse.co.za