The plan to revive the JSE

The JSE is exploring 24/7 trading and regulatory reforms to reverse its delisting crisis, attract new listings, and enhance its competitiveness in a global market increasingly shifting toward round-the-clock trading.

Over the last few decades, the JSE has been hit with a wave of delisitings, with the number of listed companies dropping from 850 in the 1990s to less than 300 in 2024.

This is largely due to overregulation and unfavourable market conditions, as well as the rise of private capital markets.

Many South African companies have also gone overseas to search for more liquidity and greater pools of capital to fund their expansion.

To address this problem, the JSE has been implementing changes to lure back companies and investors. Recently, reports have circulated that Africa’s largest stock exchange is considering extending its trading hours to a 24/7 model.

This follows the Nasdaq’s decision to open round-the-clock trading, which is expected to commence in the second half of 2026.

The Nasdaq explained that round-the-clock trading would make investing more accessible and better suit today’s real-time, globally interconnected electronic markets.

This move has prompted global discussions about 24/7 trading, and the New York and London stock exchanges are also considering extending their trading hours.

“The use case and operating model for 24 X has been proven with trading across digital assets and, in particular, crypto,” Valdene Reddy, Director of Capital Markets at the JSE, told Daily Investor.

“So, it’s a model that has been in play with traditional assets looking to catch up.”

Reddy added that global shifts, the fact that over 25% of its counters are dual-listed, and its mix of both international and local issuers and investors are all contributing to its decision to possibly extend trading hours.

“We are watching this space closely to understand the timing and trajectory of global market shifts and will respond appropriately to ensure the relevance of the SA capital markets,” Reddy said

While extended trading hours may offer more opportunities, the JSE said the real value lies in whether they enhance market depth and quality. “A holistic view of the trading ecosystem is essential to assess the true impact of such a transition,” he added.

Bringing back investment

Extending its trading hours isn’t the only shift the JSE is considering to minimise delistings, increase new listings and draw investment.

“As part of our ongoing efforts to create an enabling listing environment and attract both local and international listings, we are reviewing all our Listing Requirements with the objective of further simplifying its requirements,” the exchange said.

“The Simplification Project aims to simplify the Listings Requirements using plain language to record concise regulatory objectives, allowing better understanding and application of the requirements by listed companies, sponsors, and investors.”

According to the JSE, an additional benefit of the simplification is a significant reduction in the number of listing requirements.

“During the process, the JSE will also assess the regulatory relevance of each provision and ‘cut red tape’ where possible to ensure that the Listings Requirements are fit for purpose, aimed at an effective and appropriate level of regulation,” it said.

“To this end, any amendments beyond simplification will be clearly identified and the rationale explained.”

The proposed amendments have been submitted to the Financial Sector Conduct Authority (FSCA) and are awaiting feedback.

The JSE has also introduced regulatory reforms to attract listings to ensure it remains competitive, transparent and efficient while upholding disclosure standards and investor confidence in the market.

“These reforms include cutting red tape to create an enabling environment for listed companies,” the JSE explained.

Some notable changes include:

• The introduction of dual-class shares for applicants seeking a listing on the Main Board
• Reduction of the 20% free float threshold to 10%
• Changes to auditor accreditation
• Removal of the obligation to produce an abridged report when the issuer has published its audited annual financial statements

The JSE also expanded its fast-track universe by allowing secondary listings for companies primarily listed on all the Euronext exchanges and the Tadawul exchange.

“Further to that, we launched Market Segmentation in October 2024, which repositioned the JSE’s Main Board into two segments, the Prime and the General Segment,” the exchange said.

“This new structure aims to offer a suitable and efficient level of regulation tailored to the size and liquidity of issuers on the Main Board, while continuing to uphold investor confidence in the market.”

As of 30 June 2025, 30 out of the 108 eligible issuers (around 27%) have moved to the General Segment.