Johannesburg, 13 September 2010 – The Latest World Economic Forum (WEF) Competiveness report ranks South Africa 1st out of 139 countries in for its regulation of securities exchanges. This year South Africa moves up from 2nd place overtaking Sweden for the top position.
“We are very pleased with this achievement, which acknowledges the JSE’s record in terms of regulation and surveillance. This ranking also sends a very good message about investing in South Africa,” says Russell Loubser, CEO of the Johannesburg Stock Exchange (JSE), South Africa’s only securities exchange “It is a testament to the effective working relationship between the JSE and the Financial Services Board (FSB).”
The JSE is accountable to the FSB for the regulation of its markets, market integrity and investor protection. The two organisations work closely together.
A well-regulated securities exchange is especially important to international investors post the global financial crisis. In the midst of the crisis, unlike many exchanges, the JSE did not ban short selling nor introduce circuit breakers.
Released on 9th September, the 2010-2011 WEF Competiveness Report ranks countries according to 12 pillars or sets of criteria. The study rates a country’s competiveness according to quality of infrastructure and institutions, efficiency, market sophistication as well as capacity for innovation. Regulation of securities exchanges falls under the 8th pillar for financial market development.
South Africa fairs well in terms of financial market development criteria with an overall 9th place ranking. Within this set of criteria, other rankings that demonstrate that efficiency of local financial markets include; financing through the local equity market at 7th, availability of financial services at 7th, soundness of banks at 6th and legal rights of investors at 6th.
To view or download the full report, please visit http://www.weforum.org