See More

JSE: Bond markets need more transparency

Nov 16 2011 12:17
I-Net Bridge

Related Articles

Foreigners snap up SA bonds

Bonds surge on weak GDP data

Rand, bonds a tad firmer as risk returns

JSE boosted by central banks' move

JSE comes off earlier highs

Rand ends week softer, stocks inch up

Cape Town - A lot more transparency is needed in the interest rate markets considering the importance they have for governments to raise money, says Johannesburg Stock Exchange (JSE) deputy CEO Nicky Newton-King.

Presenting before Parliament's Select Committee on Finance on Wednesday, Newton-King said that most interest rate instruments, that included government bonds, were traded over the counter.

"There has been a lot of noise about developments in the interest rate markets and in particular that they don't have enough transparency at the moment. However, discussions are moving in a manner that may result in a compromise. But there are lots of developments in this country as are there overseas as governments need to raise money," she said.

Newton-King said it was unlikely that the 24 stock exchanges on the African continent would merge into one and she also emphasised that the JSE was not aiming to "colonise" Africa.

However, she said there were still lots of opportunities for integration through technology and linking.

"Imagine saying to an investor in Mauritius that you can trade on the JSE from Mauritius and South African investors can trade directly on the Mauritius market," Newton-King said.

She said that a lot could be done in looking at issues such a cross-listing of companies and that the recent relaxation of prudential regulations by the National Treasury would make that a more reasonable proposition.

Newton-King also said African stock exchanges needed to increase their sophistication and access and there were a lot of opportunities on the continent.

"The (investor) appetite for Africa is now; we need to harness that and I have been hearted by the increased reflection in the media of SA becoming the financial gateway to Africa and we need policies that will encourage people to come and list to raise capital to invest in the continent," Newton-King said.
nicky newton-king  |  jse  |  markets  |  bonds



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


There are no formal training requirements for becoming a beautician in South Africa. But it is highly recommended you complete a course in beauty therapy.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

SA’s new visa regulations are:

Previous results · Suggest a vote