JSE: Bond markets need more transparency
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,"
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
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.