The Johannesburg Stock Exchange (JSE) is exploring the possibility of implementing 24-hour trading, responding to global trends as major exchanges like the London Stock Exchange, Nasdaq, and New York Stock Exchange consider extending their trading hours. With over 25% of its listings being dual-listed, the JSE aims to stay relevant amidst these global shifts.
Valdene Reddy, director of capital markets at the JSE, noted that the operational model for 24-hour trading has been validated through digital assets, particularly cryptocurrencies. This model emphasizes the need for traditional assets to adapt to meet evolving market demands.
If adopted, round-the-clock trading could significantly expand access for both retail and institutional investors, enabling them to engage with global market movements in real time. The Financial Times reported that the LSEG is also contemplating a 24-hour trading service, joining other exchanges seeking regulatory approval for such initiatives.
Nasdaq has expressed its intention to implement 24-hour trading on working days, aiming for this feature to be operational in the latter half of next year. The potential for continuous trading would allow investors to react immediately to market developments without delays, fostering greater market responsiveness.
Reddy highlighted that while extended trading hours could provide more opportunities, the true value lies in enhancing market depth and quality. A comprehensive evaluation of the trading ecosystem is crucial to understanding the potential impacts of this shift.
In recent years, the JSE has been working to streamline the listing process and reduce the regulatory burdens that have contributed to a decline in the number of listed companies. The exchange’s recent segmentation into “prime” and “general” boards aims to make it more appealing for small- and mid-cap companies to remain listed.
The JSE’s reforms include allowing smaller issuers more flexibility in raising capital and extending deadlines for annual reports, which are designed to mitigate the challenges faced by smaller firms. These changes are part of a broader effort to enhance market participation and curb the trend of delistings that has halved the exchange’s size over the past two decades.
In collaboration with Nasdaq, the JSE is also investigating ways to deepen their relationship, with an emphasis on boosting liquidity and exploring cooperative listing opportunities. Reddy confirmed that work is ongoing to develop innovative solutions for the South African capital markets.