The London Stock Exchange’s new TradElect trading system is to go live for the first time in South Africa after the exchange extended its IT contract with the Johannesburg Securities Exchange (JSE) for a further five years.
The London Stock Exchange has been testing TradElect – part of its four-year IT overhaul – with major banks and City traders. The new system is designed to deliver very high performance levels, low latency and scalability.
The London exchange has supplied the JSE with its SETS trading system on an application service provider basis since 2002, with users accessing the system through a dedicated communications link between Johannesburg and London.
The extended contract will see TradElect go live for the JSE and Namibia markets in April –ahead of its introduction for the London market, which is expected in second quarter of this year.
The two exchanges have also agreed to further develop business co-operation to encourage growth in listings, trading and data sales.
JSE chief operating officer Leanne Parsons said: “Over the last five years, the JSE has developed a strong relationship with the London Stock Exchange and we are excited to be the first exchange to use their new technology.”
London Stock Exchange chief executive Clara Furse, said: "We are delighted to renew our technology and business agreements with the JSE, and look forward to extending the scope of our partnership to the benefit of both of our markets and companies.”
The average daily number of trades on the JSE has increased by over 140% since May 2002, when SETS was introduced.
Last month, the London Stock Exchange announced a deal with Tokyo Stock Exchange covering joint development of new products, cooperation over market access arrangements for member firms and an agreement to share information on technology.