The Johannesburg Stock Exchange (JSE) and New York Stock Exchange (NYSE) have signed a memorandum of understanding (MOU) to collaborate on the dual listing of companies on both exchanges.
The NYSE and JSE also agreed to jointly explore the development of new products and share knowledge around environmental, social and governance; exchange-traded funds; and digital assets.
The agreement was finalised during a visit to the NYSE by a South African delegation, which included JSE Group CEO Dr Leila Fourie and South African Reserve Bank governor Lesetja Kganyago.
The signing ceremony took place shortly before the delegation rang the closing bell, followed by a keynote address by Kganyago on monetary policy.
The MOU is crucial in that the US ranks as one of South Africa’s largest trading partners and this agreement is designed to help support the economic relationship between the nations.
Today, about 600 US companies operate in SA in sectors including manufacturing, technology, finance, insurance and wholesale trade.
In the tech space, notable US companies operating in the country include giants such as Microsoft, Google, Meta, Oracle, IBM, Workday and Amazon Web Services, among others.
“The New York Stock Exchange is pleased to sign this collaboration agreement with the Johannesburg Stock Exchange in support of the important economic and trade relationship between our two markets,” says Lynn Martin, NYSE president.
“Exploring the dual listings of companies on our two exchanges stands to increase opportunities for investors on both continents, underscoring the value public companies and our capital markets generate in the global economy. We look forward to collaborating on new product development with the JSE team and to the innovation that comes when two great organisations work together.”
“The agreement that we have signed today with the NYSE will unlock opportunities for investors and issuers of both bourses,” says Fourie.
“This is the beginning of a new chapter and I am excited about the opportunities we will explore together as we find synergies to grow both our markets. For the JSE, as the largest stock exchange on the African continent with unparalleled market depth and liquidity, we aim to create world-class solutions for both local and international investors.”
Speaking at the event, Kganyago said this new MOU will foster closer ties between the markets, and is aimed at increasing economic partnerships and trade opportunities.
“It is encouraging that the JSE and NYSE will continue to explore new areas of co-operation and collaboration in strengthening their value propositions for their respective markets,” the reserve bank governor said.
He added that SA shares significant economic interests with the US.
“South Africa is the US’s largest African trading partner and has the most diversified and industrialised economy on the continent. Despite the rapid growth in Asian economies, the US remains one of South Africa’s top five main trading partners.
“In 2021, US exports to South Africa totalled $5.5 billion − a 25.8% increase from 2020, while US imports from South Africa totalled $15.7 billion − a 38.5% increase. There are approximately 600 US businesses operating in South Africa and many use South Africa as their regional headquarters, and a springboard for greater opportunity on the African continent.”
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