The Johannesburg Stock Exchange and the New York Stock Exchange on Monday signed a memorandum of understanding to collaborate on the dual listing of companies on both exchanges.
The NYSE and the JSE also agreed to jointly explore the development of new products and share knowledge around environmental, social and governance (ESG), exchange traded funds (ETFs) and digital assets.
This agreement was finalised during a visit to the NYSE by a South African delegation including JSE group CEO Dr. Leila Fourie and South African Reserve Bank governor Lesetja Kganyago.
The agreement will unlock opportunities for investors and issuers of both bourses, Fourie said.
“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,” she said.
“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.”
The United States ranks as one of South Africa’s largest trading partners and this agreement is designed to help support the economic relationship between the two countries.
NYSE President Lynn Martin said the agreement was in support of the important economic and trade relationship between the two markets.
“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,” Martin said.
“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.”
About 600 U.S. companies operate in South Africa in sectors including manufacturing, technology, finance, insurance and wholesale trade.
The signing ceremony took place shortly before the delegation rang the closing bell, followed by a keynote address by Kganyago on monetary policy.
Kganyago said the memorandum would foster closer ties between the two markets, and was aimed at increasing economic partnerships and trade opportunities.
It was encouraging that the JSE and NYSE would continue to explore new areas of cooperation and collaboration in strengthening their value propositions for their respective markets, he said.
“South Africa shares significant economic interests with the United States (US). South Africa is the US’s largest African trading partner and has the most diversified and industrialised economy on the continent,” Kganyago added.
Despite the rapid growth in Asian economies, the US remains one of South Africa’s top five trading partners.
“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,” Kganyago said.
BUSINESS REPORT