African markets are moving towards integration, which will see investors from one exchange getting access to trade in another, JSE’s Nicky Newton-King has said.
Newton-King, the Chief Executive of the Johannesburg Stock Exchange, made the remarks on integration of African markets at a time when Africa's largest bourse is set to host the first African Securities Exchange Association conference this November.
According to Newton-King, one of the mandates of African Securities Exchange Association is to promote the development of capital markets on the continent, promote linkages among African exchanges and increase market access.
Newton-King hailed the proposed move of integrating markets saying, “Those who operate in the regulated market need to know that we are part of the global financial markets.”
“In east Africa they are starting a significant regional connectivity and among the rest of us, it is much more tentative,” she said.
“It is about finding ways to share knowledge and experiences so as to build depth and sophistication of African markets across the continent that will allow linkages to develop over time,” she added.
Newton-King dismissed immediate prospects of setting up one African Exchange.
“We should be careful to suggest that we are going to end up with one African exchange,” she warned.
“We would end up with one African exchange if we were starting from scratch but that is not the case, we have about 25 African exchanges so for investors it would be about electronic linkages,” she said.
Plans are also afoot to get African companies to consider making their secondary listings on the JSE as opposed to other global markets, the City of Joburg's Mayor Parks Tau revealed at The All Africa Business Leaders Awards last night.