Ghana Stock Exchange
The Ghana Stock Exchange is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990, it lists 42 equities and 2 corporate bonds. All types of securities can be listed. Criteria for listing include capital adequacy, spread of shares, years of existence and management efficiency; the GSE is located within the Cedi House in Accra. Since its inception, the GSE's listings have been included in the main index, the GSE All-Share Index. In 1993, the GSE was the sixth best index performing emerging stock market, with a capital appreciation of 116%. In 1994 it was the best index performing stock market among all emerging markets, gaining 124.3% in its index level. 1995's index growth was 6.3% because of high inflation and interest rates. Growth of the index for 1997 was 42%, at the end of 1998 it was 868.35. As of October 2006 the market capitalization of the Ghana Stock Exchange was about 111,500 billion cedis; as of December 31, 2007, the GSE's market capitalization was 131,633.22 billion cedis.
In 2007, the index appreciated by 31.84%. The manufacturing and brewing sectors dominate the exchange. A distant third is the banking sector while other listed companies fall into the insurance and petroleum sectors. Most of the listed companies on the GSE are Ghanaian but there are some multinationals. Although non-resident investors can deal in securities listed on the exchange without obtaining prior exchange control permission, there are some restrictions on portfolio investors not resident in Ghana; the current limits on all types of non-resident investor holdings are as follows: a single investor is allowed to hold up to 10% of every equity. Secondly, for every equity, foreign investors may hold up to a cumulative total of 74%; the limits exclude trade in Ashanti Goldfields shares. These restrictions were abolished by the Foreign Exchange Act, 2006. There is an 8% withholding tax on dividend income for all investors. Capital gains on securities listed on the exchange will remain exempt from tax until 2015.
The exemption of capital gains applies to all investors on the exchange. There are no exchange control regulations on the remittance of original investment capital, capital gains, interest payments and other related earnings. Potential changes at the exchange include the introduction of automated trading and the listing of some state banks; the Bank of Ghana plans the development of mutual funds, unit trusts and municipal bonds at a subsequent date. These changes are aimed at making the exchange more relevant and effective; the exchange was involved in preparing the draft law on collective investment vehicles. The exchange has pre-market sessions from 9:30am to 10:00am and a continuous auction session from 10:00am to 3:00pm GMT on all days of the week except Saturdays and holidays declared by the exchange in advance; the websites of licensed dealing members, or "LDMs", of the Ghana Stock Exchange include detailed information about the exchange, daily rates, company research and further links.
Licensed brokers of the GSE include: Stanbic Bank Ghana IC Securities Databank Group Gold Coast Securities NTHC Securities Discount Brokers FirstBanC Brokerage Services Ltd Merban Stockbrokers Ltd List of companies of Ghana GSE Composite Index List of African stock exchanges List of stock exchanges List of stock exchanges in the Commonwealth of Nations
Seychelles Securities Exchange (Trop-X)
Seychelles Securities Exchange, is the only licensed securities exchange in Seychelles and operates markets for the listing and trading of equities, derivatives, Forex products and more. Trop-X went live August 2013 with the listing of State Assurance Corporation of Seychelles on the Main Board of its Equities Market. At 6 March 2017, Trop-X has 9 listed stocks on its three equities boards and a total market capitalization of USD 104 million at end of December 2016. Trop-X Limited was incorporated in the Republic of Seychelles in 2011 and received a license from the Financial Services Authority to establish and operate the Seychelles Securities Exchange in 2012; the exchange’s doors opened for trading on 8 August 2013 with the listing of SACOS, one of the main insurance companies in Seychelles. In July 2014,Trop-X launched the Derivatives Market. In September 2014 Trop-X launched its Derivatives Market with the listing of multiple US Dollar denominated and settled contracts for differences on major international currency pairs, equities indices, single stock equities from the US and UK markets and ETFs Trop-X operates a vertically integrated electronic securities exchange, clearing and registry platform with real time gross settlement which eliminates settlement risk for broker members and their clients.
Listing and trading is available in US Dollars, British Pounds, Seychelles Rupees and South African Rand. Trop-X target is to be an alternative market for the AMEA markets. Listing rules and market rules are in line with international best practices and in line with latest IOSCO principles, but adapted for Seychelles and the AMEA taking into consideration the types of products being offered and framework within which many issuers and investors must operate in the region. Seychelles offers a suite of laws and resulting products making it ideally suited for creation and listing of alternative listed securities such as various types of investment funds, structured products and debt programs all of which can be denominated and settled in any of several different currencies given that there are no exchange control restrictions in Seychelles. Trop-X offers membership to both local securities dealers and others who are members of exchanges in any “recognized jurisdiction” as provided for under the Securities Act.
Recognized jurisdictions include all of the major financial centers and offshore financial centers including fellow African Union members South Africa and Mauritius. Trop-X is a Correspondent Member of the World Federation of Exchanges, a full Member of the Committee of Southern African Development Community Stock Exchanges, a full Member of the African Securities Exchanges Association and a partner exchange of the United Nations Sustainable Stock Exchanges Initiative; the Exchange offers three equities boards. As at 6 March 2017: Trop-X offers a broad range of USD settled listed derivatives on underlying assets much including currencies, equity indices, equity securities, bonds, ETFs and interest rates. Through its derivatives market, Trop-X provides a neutral, level playing field for all market participants, regardless of status, size or activity levels. Trop-X launched its debt market March 2016 with the listing of a South African Rand denominated short term money market program; the Debt Market includes provisions for issuances of all types including convertible bonds, money market instruments, zero coupon bonds and more.
AfriClear Limited is a licensed clearing agency, regulated by the Seychelles Financial Services Authority to provide clearing and settlement services under the Seychelles Securities Act. It handles clearing and settlement services for Trop-X Limited. AfriDep Limited provides registry services to issuers listed on Trop-X Limited. AfriDep is a licensed Securities Facility under the Seychelles Securities Act. Trop-X is regulated by the Seychelles Financial Services Authority; the Seychelles Financial Services Authority was established under the Financial Services Authority Act, 2013, is the regulator for non-bank financial services in the Seychelles. Known as Seychelles International Business Authority, it is the Authority responsible for licensing and development of the non-bank financial services industry of the Seychelles
JSE Limited is the oldest existing and largest stock exchange in Africa. It is situated at the corner of Maude Street and Gwen Lane in Sandton, South Africa. In 2003 the JSE had an estimated 472 listed companies and a market capitalisation of US$182.6 billion, as well as an average monthly traded value of US$6.399 billion. As of 31 December 2013, the market capitalisation of the JSE was at US$1,007 billion; the discovery of gold on the Witwatersrand in 1886 led to many mining and financial companies opening and a need soon arose for a stock exchange. The first share transactions on the Rand took place in a rustic canvas tent, with trade taking place on Sundays, as this was the only day when mining was not allowed, owing to a enforced regulation prohibiting the entry of African workers to the gold reefs; the Johannesburg Exchange & Chambers Company was established by a London businessman, Benjamin Minors Woollan and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on 8 November 1887.
What gave the JSE a clear advantage over exchanges such as Kimberley, and, most London, was that listing of companies for a quotation on the Official List of the JSE was an easy and cheap procedure. This simple and non-restricting nature of the early Exchange promoted a wave of initial registrations on the Official List, with 68 companies by the end of November 1887; the Official List further expanded to more than 300 companies by the end of January 1890. By 1890 the trading hall became too small and had to be rebuilt but this too was outgrown. Trading moved into the street; the Mining Commissioner closed off Simmonds Street between Market Square and Commissioner Street by means of chains. In 1903, a new building was built for the JSE on Hollard Street, it was a storey building that took up an entire whole city block bounded by Fox and Main and Sauer Streets. After World War II, it became apparent that this building was again inadequate and in 1947 the decision was made to rebuild the stock exchange.
It took 11 years before construction began and in February 1961 the second exchange at Hollard Street was opened. By 1963, the JSE became a member of the Federation International Bourses de Valeurs. In 1978, the JSE took up residence at 17 Diagonal Street near Johannesburg. 1993 saw. After 108 years, the open outcry system of trading was changed to an electronic system on 7 June 1996. In September 2000, the Johannesburg Securities Exchange moved to its present location in Sandton and changed its official name to the JSE Securities Exchange. In 2001 an agreement was struck with the London Stock Exchange enabling cross-dealing between the two bourses and replacing the JSE's trading system with that of the LSE. In 2009 the JSE acquired the Bond Exchange of South Africa for R240 million and rebranded it the JSE debt market adding South African government and corporate bonds as well as interest rate derivatives to its product set. On 18 June 2012, the JSE became a founding member of the United Nations Sustainable Stock Exchanges initiative on the eve of the United Nations Conference on Sustainable Development.
On 14 April 2014, the JSE re-branded to demonstrates the bourse's identity as a modern African marketplace that connects investors to growth opportunities not only in South Africa but globally. The JSE provides a market where securities can be traded under a regulated procedure, it not only channels funds into the economy, but provides investors with returns on investments in the form of dividends. The exchange fulfils its main function—the raising of primary capital—by rechannelling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation; the exchange is directed by an honorary committee of 16 people, all with full voting rights. The elected stockbroking members, who cannot number less than eight or more than eleven, may appoint an executive president and five outside members to the committee. Policy decisions are made by the committee and carried out by a full-time executive committee headed by the executive president.
The JSE is governed by its members but through their use of JSE services and facilities, these members are customers of the Exchange. Although there is only one stock exchange in South Africa, the Stock Exchanges Control Act does allow for the existence and operation of more than one exchange; each year the JSE must apply to the Minister of Finance for an operating license which vests external control of the exchange in the FSB. The JSE's automated trading system is called the Millennium Exchange, which replaced the JSE TradElect system in 2012, which in turn had replaced the JSE SETS system in April 2007, which had replaced the JSE JET system in May 2002; the change to the Millennium Exchange involved moving the platform from London to a new platform housed in the JSE building in Johannesburg, thus speeding up the execution of transactions. The JSE operates an order-driven, central order book trading system with opening, intra-day and closing auctions. In August 1997, the JSE launched the real-time Stock Exchange News Service to enhance market transparency and investor confidence.
It was optional for listed companies to use the service during its two-month trial period. From 15 October, augmented JSE listing requirements oblige companies to disseminate any corporate news or price-sensitive information on the service prior to using any other