Jul 14, 2008
‘Significant’ financial losses after technical glitch delays opening of JSEBack
Engineering|Johannesburg|London|System|Alan Momberg|Norman Muller|Russell Loubser
© Reuse this The JSE's failing to open for trade until nearly 15:00 on Monday owing to technical problems entailed significant losses for the stock broking industry, for which CEO Russell Loubser apologised.
He noted that what worsened the situation was that Monday had been the first day that the market had been up in a while. "We've lost out on some selling opportunities."
"We know that we have inconvenienced the market, and we are very apologetic for that," Loubser told Engineering News Online. "The trading system hasn't been down in six years and our networks have been up for 99,6% of the time in the last six years."
"Whatever happened today was bad," Momberg said, adding that the JSE's announcement that it would stay open for trade until 19:00 on Monday evening would make a small difference, but that "the damage is done".
WHAT WENT WRONG?
Loubser stressed that the problem had not been with the JSE's trading system, but with the network, which stretched from London to Johannesburg, involving many different "players" in between.
He said that the bourse had managed to pinpoint where the problem arose "fairly early on", but did not want to disclose the information until a full investigation had been completed. The bourse became aware of the problem at 06:30 on Monday morning.
This probe, already under way, Loubser said, the JSE would complete "as soon as possible".Financial Services Board (FSB) capital markets head Norman Muller said that the watchdog would receive a report from the JSE on the problem.
"It is standard practice that the FSB be informed immediately if the market can’t open, that such event be fully investigated by the JSE, and reported to the FSB. Appropriate action will be taken if an exchange be found guilty of any misconduct," he said in an email.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other ICT News
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...