Johannesburg Stock Exchange

Exchange entity Johannesburg Stock Exchange (JSE)
Conducts business in South Africa
Number of listed companies (dec./16) 376
Domestic market capitalization (in Millions USD, dec./16) 958,907
Has signed the SSE Commitment Letter? Yes
Has prepared SSE Communication to Stakeholders? Yes
Requires ESG reporting as a listing rule? Yes;
  • Requires (on an apply and explain basis) that listed companies annually report the extent to which they comply with the King Code.  King IV includes sustainability reporting as well as integrated reporting.   Source
  • JSE also has mandatory governance disclosure requirements beyond the principles of King.
Offers written guidance on ESG reporting? Yes;
  • The JSE has collaborated with the Institute of Directors in Southern Africa (IoDSA) assisting the King Committee on Corporate Governance Guidance to issue guidance notes on reporting against the King Code – see here. The JSE is a member of the standing King Committee. King III is available online as are the various practice notes issued.From an investment tool perspective, the FTSE/JSE Responsible Investment (RI) index series was introduced in October 2015 and replaced the SRI Index that had been running since 2004. The methodology measures eligible companies ESG strategies and performance, thus also influencing the way companies should operate.  Source
  • JSE is a member and significant contributor to the development of guidance on integrated reporting as issued by the Integrated Reporting Committee of South Africa.
Offers ESG related training? Yes;
  • Mandatory directors training is offered for smaller companies intending to list on the alternative board Alt-X, in collaboration with the Institute of Directors.  See here.

    While specialised ESG training is still nascent, the JSE continues to explore training needs of companies. Our standard course on the listings requirements covers the King Code and its reporting elements. During 2016, the JSE launched a programme on corporate ethics.   See here.

    An annual SRI Showcase / ESG Investor Briefing is run to enable investor engagement on ESG issues.
Provides sustainability-related indices? Yes;
  • The JSE has adopted the FTSE ESG Ratings process to create the FTSE/JSE Responsible Investment Index Series, launched on 12 October 2015.  This replaced the SRI Index that had been running from 2004.

    The RI Index Series currently comprises two indices:

    i.  The FTSE/JSE Responsible Investment Index, a market-cap weighted index calculated on an end of day basis, comprising all eligible companies who achieve a FTSE ESG rating of 2.0 or above.

    ii.  The FTSE/JSE Responsible Investment Top 30 Index, an equally weighted tradable index calculated on a real time basis, comprising the Top 30 companies ranked by FTSE ESG Rating.

    See www.jse.co.za/responsible-investment
Has green bond listings? Yes
Additional Information
Organizational model of stock exchange
  • Listed company for profit; demutualized in 2005 and listed in 2006
Regulatory bodies
  • Registrar of Securities Services, Financial Services Board
Regulatory model
  • Because of the level of authority possessed by the exchange, it is considered a Strong Exchange Self-Regulatory Organisation (SRO) Model.

    The JSE is the frontline regulator for the exchange, setting and enforcing listing and membership requirements and trading rules. The Financial Services Board (FSB) supervises the JSE in the performance of its regulatory duties.

    The regulatory landscape is set to change significantly in the future, as South Africa looks to implement a twin peaks model of oversight. Under the new system, prudential supervision will be transferred to the South African Reserve Bank (SARB) and market conduct regulation will be led by a bolstered FSB.
About the stock exchange
  • Location: Johannesburg, South Africa The Johannesburg Stock Exchange (“JSE”) offers secure, efficient primary and secondary capital markets across a diverse range of securities, supported by our post-trade and regulatory services. We are the market of choice for local and international investors looking to gain exposure to the leading capital markets in South Africa and the broader African continent. The JSE is currently ranked the 17th largest stock exchange in the world by market capitalisation and the largest exchange in the African continent. The JSE was formed in 1887 during the first South African gold rush. Following the first legislation covering financial markets in 1947, the JSE joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s. The bourse demutualised in 2005 and listed on its own exchange in 2006. In 2003, we launched an alternative exchange, AltX, for small and mid-sized listings, followed by the Yield X for interest rate and currency instruments. The JSE acquired the South African Futures Exchange (SAFEX) in 2001 and the Bond Exchange of South Africa (BESA) in 2009. Today we offer five financial markets namely Equities and Bonds as well as Financial, Commodity and Interest Rate Derivatives. Source
Ownership of Exchange (Shares >5% only) Share
Government Employees Pension Fund of South Africa 12.3%
Skagen Kon-Tiki Verdiparpirfond 6.6%