The Research sub-Committee ("the sub-Committee"), under the chairmanship of Professor Michael Katz, was formed by the JSE Committee some three years ago in anticipation of the significant changes in the South African political and economic environment. The terms of reference of the sub-Committee were: "to advise on how the JSE should be restructured as South Africa enters a new era and to identify any impediments to any such restructuring."

The sub-Committee published a 500 page report in April 1994 ("Research Report") which covered an extensive range of issues and resulted in 126 recommendations. The JSE Committee adopted the majority view recommendations and a timetable for the implementation of the recommendations was published in August 1994.

A restructuring plan has been approved by the JSE Committee to ensure the efficient and successful restructuring in accordance with meeting the following needs:

- the JSE must remain relevant in South Africa's new political and economic era and contribute to the development of the economy; and

- the JSE must be attractive to all investors, including foreign investors.

Restructuring of the JSE, an institution which will be 108 years old this year, presents an enormous but exciting challenge to both members and staff. The restructuring impacts on membership, trading principles and systems, clearing and settlement, transfer and registration, capital requirements of stockbroking firms and the financial structure of the JSE.

In this endeavour, the JSE and the Council of Southern African Banks have agreed to assist and cooperate with one another to achieve the shared long term visions, "to create a market which will meet the needs of the users, both local and international, and which will result in security, market protection, cost efficiency, liquidity, and ease of use". This is a continuation of the JSE's commitment to the evolutionary change envisioned in the Research Report.

The restructuring of the JSE to achieve these aims will provide, inter alia, for:

- corporate limited liability membership with the ownership of stockbroking firms by non-stockbrokers (in addition to existing membership structures);

- revised capital requirements;

- dual trading capacity;

- fully negotiated brokerage;

- automated trading;

- internationally competitive transaction costs;

- an electronic scrip registry (if necessary via a central depository as an interim step);
rolling settlement; and

- revised listings requirements.

The restructuring process was formally approved by the JSE membership on 24 August 1995.

Whilst every care has been taken in the preparation of this article, the JSE is not responsible for any errors or omissions contained therein. Readers should therefore study the original Act, rules and other documents referred to or consult with the JSE before acting on any information supplied.

For further information kindly contact: JSE Public Relations Department, PO Box 1174, Johannesburg 2000. Tel: 377 2200; Fax: 834 7402; or do a text search "Johannesburg Stock Exchange" and "Business Monitor".