The Johannesburg Stock Exchange (JSE) explained that a wrong date entry was behind paying the incorrect interest rate on broker-dealer cash accounts in March.
Daily Investor received complaints from JSE partners that they received a lower-than-expected interest rate on their cash accounts last month.
The JSE declared a 7.31% interest rate on broker-dealer cash accounts for March. However, the interest paid out to accounts only reflected an interest rate of 7.23%.
The JSE confirmed that it paid the wrong interest rate to its equity client accounts with credit balances.
The JSE, in terms of its equity rules for authorised JSE equity members, per its regulatory responsibilities, publishes the JSE Trustees’ interest rate monthly.
The JSE loads this rate into its systems, and the JSE equity members receive interest calculated as this rate from the effective date.
The JSE said it used the correct interest rate but erroneously loaded the effective date as 1 April 2023 instead of 25 February 2023.
“The JSE has communicated to all impacted JSE equity members and is taking corrective steps to rectify the incorrect calculation and processing of interest,” the JSE told Daily Investor.
It added that it is now ensuring that the correct interest is calculated and processed for affected JSE equity members and their clients.
“Measures have been put in place to avoid a reoccurrence,” the exchange told Daily Investor.