A DELEGATION from the Johannesburg Stock Exchange (JSE) was in the country last week to inspect Zimbabwe’s stock exchange as preparations to link operations between regional bourses with Joha
nnesburg and adopt electronic trading gain momentum.
ZSE chief executive officer Emmanuel Munyukwi in an interview said the team had also visited Zambia.
“The JSE team was here and inspected our information technology system on the bourse,” Munyukwi said. “As you know we are still using an out-dated system but are striving to be linked electronically with JSE. The changes are rather dramatic and so they came to see how they can help and how we can come onto their system.”
Unlike its South African counterpart the ZSE currently uses a floor trading system which will be abolished once the depository one is established.
Last year Munyukwi said the link was meant to attract capital inflows into Zimbabwe in particular and the Sadc in general.
He said the agreement was reached in principle with South Africa but no time-frame had been set.
Botswana has, however, already cried foul, claiming Johannesburg wanted to dominate the stock exchange world to boost its own trading volumes and revenues.
The Botswana Stock Exchange (BSE) last year accused the JSE of trying to force regional exchanges into a South African-dominated bourse to boost its own trading volumes and revenues.
“The JSE is attempting to apply pressure on the smaller Southern African Development Community exchanges into accepting an unreasonable proposal which will allow the JSE to siphon off order flow from the smaller exchanges in an effort to boost their own trading volumes and revenue,” the BSE said in a statement.
“This proposal will reduce the number of issuers and investors on Sadc stock exchanges, diminish trading volumes and most certainly lead to capital flight towards Johannesburg.”
The exchange plan would allow poorer countries access to Johannesburg’s trading system which it shares with the London Stock Exchange.
Members of Sadc harmonised their listing requirements in 1998.
JSE deputy chief executive officer Nicky Newton-King has said the bourse was in talks with markets in Ghana, Namibia, Zimbabwe and Zambia for trading stocks from around the continent on its platform.
But the BSE said it believed only Namibia, Zambia and Zimbabwe out of the other Sadc exchanges had considered the proposal.
The BSE proposed instead creating cooperation among Sadc exchanges which would allow each bourse to follow its own path of development while working to harmonise regional capital markets.
“The BSE is not prepared to trade its decade-long exceptional performance and ability to operate markets that are fair and equitable for a subservient role in a JSE-dominated market,” it said.
The 14-member Sadc states are Angola, Botswana, the Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.