How does the JSE solve this problem?
While the JSE can hardly be blamed for South Africa’s structural problems, it is not powerless in improving its prospects.
Warren Ingram of Galileo Capital believes some of the JSE’s woes are of its own making.“The chickens are coming home to roost from many years ago. When we moved from physical share certificates to electronic share certificates, as investors we were promised that Strate as the exchange’s principal central securities depository and central collateral platform would make it cheaper to buy, hold and sell shares. In fact, the opposite happened and the exchange is not more efficient.”
He says legacy operating systems create one significant problem, but there are further structural issues.“It seems ridiculous but JSE-listed companies don’t know who all their shareholders are. At most exchanges, if you want
