Transformation of the highly concentrated stockbroking sector is proceeding at a snail’s pace, with black stockbrokers involved in less than 2% of the value traded on the Johannesburg Securities Exchange. With 80% of the brokerage on the exchange being handled by only 10 of the 55 members of the JSE, little of the cake remains to be shared among the rest. These facts emerged from the summit on transformation in the stockbroking industry organised on Thursday by the Association of Black Securities and Investment Professionals (Absip). The failure of asset institutions to use black stockbrokers was a dominant theme. The JSE’s head of equity and equity derivatives, Valdene Reddy, noted that the fall of about 15% over the year in trading volumes created a difficult context within which to drive transformation. The JSE had taken steps to reduce trading fees for qualifying firms whose margins were under pressure. The CEO of Lefika Securities and a member of the Black Brokers Forum, Vusimu...

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