An equities options market for trading standard options contracts is being developed and is expected to be operational in mid-1997. Trading will be automated and clearing members will be introduced through a separate entity to assist with settlement and risk management. Traditional options are traded on an OTC basis.
There are four categories of membership:
- corporate limited liability;
- sole traders;
- partnerships, and
- corporate unlimited liability.
The member is the trading entity and not the individual. Foreigners may also become members.
A member must appoint an officer who has passed the compliance officer examination. It will be that officer's prime responsibility to ensure the member's compliance with the provisions of SECA, the rules and the JSE Committee directives and decisions.
THE SOUTH AFRICAN INSTITUTE OF STOCKBROKERS
The Institute was founded in November 1995 to represent, train, qualify and discipline stockbrokers independently from the JSE. Stockbrokers must pass the examination of the Institute. There are two categories of membership: practising and non-practising stockbroker.
Automated electronic trading commenced in March 1996 on the Johannesburg Equities Trading (JET) System, converting the first group of stocks from floor trading. The trading floor was closed finally on 7 June 1996. The structure then changed to:
- continuous order-driven with central market principles;
- dual trading capacity, complemented by members voluntarily acting as market-makers, and
- fully negotiable brokerage with clients.
AFTER HOURS TRADING
Transactions may be executed in respect of orders received after hours or in respect of the continuation of an order already entered into JET, provided one party to the transaction is international and that at least one leg of the transaction is conducted on an agency basis. These rules, however, are currently under review.
FURTHER INFORMATION CAN BE OBTAINED FROM
Internet : http://www.jse.co.za Johannesburg Stock Exchange * Public Relations Department 17 Diagonal Street * Johannesburg 2001 * Telephone 27 11 377 2200 P O Box 1174 * Johannesburg 2000 * Telefax 27 11 834 7402