The JSE LSE Deal

1
The JSE / LSE Deal
The JSE / LSE Deal consists of two separate
agreements
Release 1 focuses on the implementation of the
technology solution.
2
Dual Listings Remote Membership
LSE
JSE
Exchanges
Dual Primary Listed
JSE Primary and Other Secondary Listings
Listing
Segment 1 SETS 184 Board
Segment 2 UK International Board
Segment 4 International JSE Board
Segment 5 Local JSE Board 1
Segment 6 Local JSE Board 2
Segment 7 Local JSE Board 3
Segment 3 International UK JSE Board
Segment 8 NSX Board
Segments
Order-driven OA, CA 184 UK Stocks (GBx)
Order-driven OA, CA 40 60 SA Stocks (GBx)
Order-driven OA, CA 40 60 SA Stocks
Order-driven OA, CA Other Liquid SA Stocks
Order-driven OA, IA, CA Illiquid SA Stocks
Quote-driven MM Possible Illiquid Stocks
Order-driven OA, CT, IA . . . CT, CA NSX Stocks
Order-driven OA, CA 184 UK Stocks
Segment Charac-teristics
(ZAc)
(ZAc)
(ZAc)
(ZAc)
(ZAc)
(ZAc)
Segment Partici-pants
Local LSE Participants
Int. LSE Participants
Int. JSE Participants
Local JSE Participants
KEY OA Opening Auction CA Closing Auction
IA - Intraday Auction MM Market Makers Int. -
International
3
Dual Listings Rationale Aim
Some reasons why SA companies seek to move their
listing to London
The aim of the agreement
Cost of raising capital perceived as cheaper in
London
To make it possible for SA companies to list and
gain admission to the LSE as part of their
listing process with the JSE.
London provides access to a larger pool of funds
liquidity
Perceived elimination of country risk
The recognition of the listing in London for
these companies would have to be equivalent to a
LSE Listing obtained through any other route
for the new listing route to be attractive.
4
Dual Listings Obstacles Risks
The JSE LSE will work together to manage these
risks through careful negotiation with the
relevant parties but it should be recognised that
a successful outcome cannot be guaranteed.
Any listing co-operation is subject to FSA
agreement
Approval by FSB, Treasury and EXCON
Exchange control restrictions within SA could
prevent securities issued by SA companies being
traded in both Sterling and Rand
5
Dual Listings Next Steps
The process to enable dual listings is underway
Definition and of procedures for listings
approval implementation
Protocol to be defined by the FSA
Drafting of Listings Requirements for primary
dual listings on JSE International Board
Exchange Control resolution
6
Remote Membership
Members of JSE authorised as remote participants
will be entitled to trade on SETS
Members of LSE authorised as remote participants
will be entitled to trade on JSE in certain
segments