JOHANNESBERG, May 26 – The Johannesburg stock exchange (JSE) is moving to tighten rules around algorithmic and direct-market-access trading as Africa’s biggest exchange looks to reduce the risk of trading errors and market disruption.
The Johannesburg-based bourse said brokers and trading service providers would be required to directly manage and monitor market access controls under proposed amendments published on Monday.
The exchange first introduced the proposals in March last year before submitting them to South Africa’s Financial Sector Conduct Authority for review. Following feedback from the regulator, the JSE now plans to move several trading controls from technical directives into its formal rulebook, giving the exchange stronger oversight powers.
The proposed changes are aimed at reducing risks linked to automated trading systems and direct market access, where clients can place trades directly into the exchange’s systems through brokers.
The JSE said brokers would remain responsible for monitoring those controls even when third-party technology providers are involved in building or maintaining the systems.
The exchange added that the updated framework would bring its market rules more closely in line with international standards adopted in the US and Europe after the global financial crisis.
JSE members have been given 10 days to submit objections before the amendments are sent to the Financial Sector Conduct Authority for final approval.
The exchange did not provide a timeline for when the new rules could take effect.
