1. Copyright© JSE Limited 2005 www.jse.co.za The Role of Technology in Market Development “African Capital Markets: The Next Investment Frontier” Accra, Ghana, 30 October 2007 Siobhan Cleary Senior Manager: Strategy, JSE Ltd

2. © 2 Some facts and figures 2005 World Federation of Exchanges Cost/Revenue Survey: IT and staff costs together accounted for over 50% of exchange costs Markets in Financial Instruments Directive (MiFID) and best execution Technology changing the way people trade: −DMA, Algorithmic trading "The exchange industry is evolving fast. Increased openness, competition, cross-border trading and changing trading models puts new demands on speed, availability and agility.” CEO, OMX “When customers push the button to buy or sell …, they know what's going to happen and they know it's going to happen fast and they know we're going to be there all the time. That really is what differentiates our technology.” Jim Krause, CTO, CME Group Technology matters to the business of an exchange

3. © 3 Why technology matters Technology as enabler: −Enhanced market access −Improved information dissemination and publicity −Greater transparency −Improved surveillance capability −Enhanced investor confidence −Greater opportunity for innovation Technology as competitive edge Technology as a way to “leap-frog”

4. © 4 Technology and African market development International investors seeking access to “African” investments Local issuers seeking capital and local investors seeking investment opportunities Tech enables: −virtual linking of markets to create a single window −opportunity for cost efficiencies Technology investment critical but can be done intelligently: −share infrastructure where feasible −invest not just for now, but for the forseeable future −understand global trends and opportunities −understand what customers want

5. © 5 Concluding comments It’s critical to find the right balance between local and global −Exchange must be relevant for the local context but cannot ignore demands of international investment community Partners make things happen −Exchanges cannot do everything themselves – must leverage the expertise of other capital market actors Cooperation is critical −Need to stop thinking in terms of competition and look for ways to cooperate – with one another, not just players outside the continent

6. Copyright© JSE Limited 2005 www.jse.co.za Questions?