The JSE plans to reduce its technology operating expenditure by a minimum of R70-million over a two-year period, which will also result in the stock exchange reducing its staff complement by 60 people.
Noting that the plans form part of its ongoing cost optimisation drive, JSE CEO Nicky Newton-King said, globally, securities exchanges and other players in the financial services industry were adjusting how they operate in response to changing regulatory requirements and the fast pace of technological developments.
“In addition, on a macroeconomic level, the country continues to be plagued with low economic growth, ratings downgrades and a loss of business confidence. This has negatively impacted on market activity.
“We are focused on preparing the JSE to meet these challenges head-on. The fast-moving nature of our business requires us to change the way in which we operate so that we are as nimble and as cost effective as possible. We cannot do so without significantly rethinking our cost base, our operating model and the way we are structured as a business,” she added.
The JSE was refreshing its information technology (IT) operating structure to align to best practice. “At the same time, our large dependency on IT requires that we look at using technology in a more agile manner to support the execution of our business strategy.”
Once completed, these initiatives will result in yearly cost savings of nearly R170-million, which will be fully realised from 2019 onwards.
This is in addition to the nearly R65-million yearly savings already achieved to date through a combination of removing vacancies and reducing discretionary spend.