Membership

Current Structure

1. Individuals - with unlimited liability.

2. Stockbroking businesses owned by qualified stockbrokers only.

3. South African citizens only.

Future Structure

1. Additionally, the option of corporate membership with limited liability subject to appropriate capital requirements. The trading entity now the member (1995).

2. Additionally, ownership by non-stockbrokers who are fit and proper. This will enable, inter alia, banks to operate stockbroking businesses (1995).

3. Removal of citizenship requirement (1995).

Trading Capacity

Current Situation

Single capacity i.e. stockbrokers deal with South African clients as agents. They may deal as principals with qualifying foreign clients.

Future Situation

Dual capacity ie the option of dealing as an agent or a principal with a client, subject to the disclosure of the capacity dealt in (1996).

Trading Method

Current Situation

Open outcry, continuous auction on a trading floor; order driven.

Future Situation

Order driven, automated trading with the facility for market makers (1996).

Capital Requirements

Current Situation

Requirements for stockbrokers as developed by the JSE.

Future Situation

Requirements generally calculated in accordance with European Union requirements and with the separation of clients' funds from stockbrokers' funds (1995).

Brokerage

Current Situation

Fixed scale on portion of transactions up to R3 million and negotiable on the portion above R3 million.

Future Situation

Fully negotiable (1996).

Listing Requirements

Current Situation

As developed by the JSE.

Future Situation

Revised after extensive consultation to meet the new needs of South Africa, the Reconstruction and Development Programme and foreign investors. (1995)

Settlement

Current Situation

1. Settlement of share transactions in terms of a fixed settlement period (generally on the following Tuesday).

2. Manual exchange of cheques and share certificates.

Future Situation

1. Rolling Settlement, ultimately 3 days after trade i.e. T+3 (1996/97).

2. Immobilisation of share certificates in a central Depository followed by full dematerialisation. The latter embodies simultaneous electronic transfer of cash funds and share ownership by means of an electronic share registry and the payments system (1996/97).

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".