JSE Faces Record Fine as Competition Commission Targets Market Dominance

Historic JSE Faces Unprecedented Scrutiny

For 138 years, the Johannesburg Stock Exchange (JSE) has been the cornerstone of South Africa’s financial markets. But now, the venerable institution finds itself under the Competition Commission’s microscope and could face a record-breaking fine equal to 10% of its annual turnover.

The case stems from a complaint filed by rival exchange A2X in October 2022, which alleges that the JSE used its dominant position to deliberately stifle competition in the secondary trading market.

The Roots of the Dispute

A2X, launched in 2017, entered a space historically controlled by the JSE, offering brokers an alternative platform for trading South Africa’s primary listed shares. But according to the Competition Commission, the new exchange struggled to gain traction because it couldn’t integrate efficiently with the JSE’s systems.

“The JSE controls South Africa’s primary listings, and brokers need smooth interaction with their systems to trade across platforms,” said Siyabulela Makunga, spokesperson for the Commission. “A2X was starved of trading volumes because brokers couldn’t execute trades easily across both markets.”

The Broker Dealer Accounting (BDA) system, mandatory for all trades, is at the heart of the controversy. While other markets allow brokers to choose systems that meet set standards, the JSE’s BDA is closed, making integration with A2X complex, slow, and costly.

A Deliberate Barrier?

Kevin Brady, A2X CEO, argues that this isn’t a technical glitch but a strategic move by the JSE.

“In most global markets, exchanges don’t mandate closed systems. But the JSE does, which creates obstacles for brokers trying to allocate trades across platforms,” he explained. “Some trades can move from A2X to the JSE, but the reverse is blocked, effectively throttling competition.”

Brady also pointed out that South Africa’s regulatory framework is lagging behind global standards seen in Europe, India, and the United States. While reforms are underway, including the long-delayed Financial Markets Review, the Competition Commission’s intervention is viewed as essential for market fairness.

What’s at Stake

If the Commission’s case succeeds, the JSE could be hit with one of the largest fines in South African history. Makunga emphasizes that the goal isn’t punishment alone:

“We are focused on leveling the playing field so that smaller and newer brokers can participate fully. Open and efficient markets drive broader economic growth and job creation,” he said.

For now, the JSE has acknowledged the referral and is preparing its defense, expected to be filed in early 2026. The timeline for a potential trial remains uncertain.

Public and Industry Reactions

The case has sparked a lively debate among market participants and on social media. Many see it as a necessary step to curb monopolistic practices, while others worry that a drawn-out legal battle could disrupt trading and investor confidence.

For South Africa’s financial markets, the outcome could set a historic precedent, either reinforcing the JSE’s dominance or opening the door for more competitive exchanges like A2X to thrive.