Cutting cost of trading on JSE is best way to lift number of black brokers, CEO says
The most effective way of transforming the profile of stockbroking on the JSE was to reduce the cost of trading, the CEO of the bourse, Nicky-Newton King, said on Tuesday. Newton-King briefed Parliament’s finance committee on ownership patterns of the top 100 companies listed on the exchange. She said the JSE had worked hard on increasing the participation of individual black stockbrokers and black-owned stockbroking firms. To trade on the JSE required a fair amount of capital, so the JSE tried to ensure that the capital requirements for stockbrokers were not so onerous as to exclude small, black brokers. The major challenge, however, was to get investment houses and asset managers to use black stockbrokers for their trades. The JSE assisted in this by offering black stockbrokers a rebate on the price for trading, which allowed them to offer a lower price. This had resulted in a slow increase of the flow of trades to black stockbrokers. "We have a role to ensure that all brokers hav...
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