Valdene Reddy, the director of capital markets at the Johannesburg Stock Exchange (JSE), sheds light on the recent resurgence of South Africa’s largest market in an exclusive interview with Euromoney. Over the past decade, the JSE, despite being a prominent global exchange, faced a period of stagnation marked by low volumes and lackluster listings. However, a significant transformation has occurred in the last two years, driven by improved macroeconomic performance and a shift in political dynamics.

Reddy emphasizes the JSE’s commitment to operating as a premier exchange, leveraging diversification strategies to capitalize on emerging trends and cater to evolving client needs. The exchange’s multi-asset platform has facilitated cross-selling opportunities across various markets, with a particular focus on equities, bonds, and derivatives. Recent investments in data solutions and technology, including cloud-based colocation services, have enhanced market access and functionality, positioning the JSE for sustainable growth.

The JSE’s proactive approach to product development and market enhancements has yielded remarkable results, with a notable surge in trading volumes and market performance. Reddy attributes this resurgence to a renewed focus on market quality, liquidity, and geographic expansion. The exchange’s strategic collaborations and innovative offerings have attracted renewed interest from both local and international investors, leading to a wave of new listings and capital inflows.

International companies are increasingly drawn to the JSE as a platform for growth and capital raising, with notable entrants from the UK and Europe seeking listings in South Africa. The exchange’s emphasis on sustainability and the launch of dedicated segments for green bonds and social impact bonds have further bolstered its appeal to environmentally conscious investors. Additionally, the introduction of new products like actively managed certificates and ETFs has broadened investment opportunities and enhanced market transparency.

Looking ahead, the JSE remains focused on strengthening its market structure, promoting liquidity, and adapting to evolving regulatory standards. By fostering a dynamic ecosystem that caters to diverse trading mechanisms and investor preferences, the exchange aims to solidify its position as a leading financial market hub. With a rich history spanning 137 years, the JSE is poised for continued evolution and growth, embracing the next chapter of change with confidence and resilience.