CONNECT LONDON TO JOHANNESBURG STOCK EXCHANGE AT TOP SPEED
Newly optimised lowest-latency trading route between London <> Johannesburg
With demand from financial traders growing for connectivity in South Africa, we have architectured an optimised low-latency trading route from London to Johannesburg to offer the fastest route on the market.
Why Johannesburg? The South African markets recently experienced an 11-month high back in May, and now CEO Nicky Newton King has announced further plans to improve the exchange’s infrastructure and establish it as a global player.
Speaking to John Lothian News, she highlighted plans to transition from T+5 settlement to T+3 settlement (with no failed trades thus far), re-platform the derivatives trading technology within the exchange, employ a new clearing system from Cinnober that will be live at the start of 2018, and revamp bond trading on JSE partly through London Stock Exchange Group’s MTS.
However, it’s not all plain-sailing for South Africa. The South African central bank has recently taken legal action to protect its mandate and halt the state’s ‘gross over-reach’.
Kuben Naidoo, a deputy governor at the bank, told the Financial Times that, “Without price stability, development is very hard,” and added that the whole “architecture” of the financial system could be threatened if the bank’s mandate was diluted. There was a global consensus that “low and stable inflation is consistent with fast economic growth”, he said.
How will the markets develop over the coming months? And what effect will market changes have on the JSE’s trading volumes?