Botswana Stock Exchange Critical Of JSE Regional Proposals

by Robert Lee, Tax-News.com, London

03 September 2003

The Botswana Stock Exchange issued sharp criticism of its counterpart in Johannesburg last week claiming the JSE's plan to allow smaller exchanges from neighbouring country's to trade on the larger South African bourse is merely an attempt to boost its own trading volumes and usurp regional business.

Speaking at a press conference in Gabarone last Friday, BSE chief executive officer Tebogo Matome said that whilst he was not against the idea of a pan-African stock exchange in principle, he objected to the JSE's plan as it would lead to the South African exchange dominating its neighbours in the Southern African Development Community (SADC).

According to Matome, the JSE plan would lead to a drying up of trading volumes in the smaller bourses with capital inevitably flowing to the larger exchange. He also pointed to the fact that only three of the ten exchanges within the SADC have expressed support for the JSE proposals.

"The JSE is attempting to apply pressure on the smaller Southern African Development Community (SADC) exchanges into accepting an unreasonable proposal, which will allow the JSE to siphon off order flow from the smaller... exchanges in an effort to boost their own trading volumes and revenue," the BSE said.

"It is for these reasons that the BSE has objected to the concept of a JSE-sponsored regional market and will continue to work with other regional exchanges of similar size to create a hub," added Mr Matome.

"The BSE is not prepared to trade its decade-long exceptional performance and ability to operate markets that are fair and equitable for a subservient role in a JSE-dominated market," declared the BSE chief.

Recommended