JSE LIMITED - Cost optimisation and change to JSE board of directors

Cost optimisation and change to JSE board of directors

JSE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/022939/06)
Share Code: JSE
ISIN Code: ZAE000079711
(“JSE”)


COST OPTIMISATION AND CHANGE TO JSE BOARD OF DIRECTORS


COST OPTIMISATION

As part of its ongoing cost optimisations, the JSE today announced
a number of initiatives that will result in annualised cost
savings of approximately R170m which will be fully realised from
2019 onwards. These initiatives include -

  -   A reduction in the JSE’s technology operating expenditure by
      a minimum of R70m over a two-year period; and
  -   A consultation process in terms of section 189A of the Labour
      Relations Act 66 of 1995 – this process could result in the
      retrenchment of approximately 60 people (14% of headcount)
      from the JSE’s current full-time staff complement during
      2017. These savings will reflect from the 2018 finanical
      year.

The JSE has already achieved approximately R65m in annualised
savings to date through a combination of removing vacancies and
reducing discretionary expenditure.

The JSE CEO Nicky Newton-King noted that “on a macroeconomic
level, the country continues to be plagued with low economic
growth, rating downgrades and a loss of business confidence. This
has negatively impacted financial market activity this year. In
addition, global securities exchanges and other players in the
financial services industry are changing the way in which they
operate in response to regulatory and technology developments.
The fast pace of this change requires us to adjust the way in
which we operate so that we are as nimble and as cost effective as
possible. To do this, we need to significantly re-engineer our
cost base, our operating model and the way we are structured as a
business. We are taking these difficult steps, particularly
regarding our staff, whilst recognising our responsibility to
operate the JSE so as to enhance the trust in the South African
financial markets. The JSE remains focused on the successful
delivery of its post-2017 strategies.”

CHANGE TO JSE BOARD OF DIRECTORS

In compliance with the JSE Limited Listings Requirements, the JSE
advises   that  Leanne   Parsons,   alternate  executive  director
responsible for JSE Information Services, has indicated that she
will step down from the JSE Executive Committee and from the Board
effective 31 December 2017. Ms Parsons will remain at the JSE for
2018 and will continue to drive the delivery of the Integrated
Trading and Clearing Project (“ITaC”).

The JSE will utilise this considerable lead time to enable a
smooth succession for Ms Parsons’ executive responsibilities and
to ensure that our strategic ITaC project remains on track.



Sandton
7 July 2017


Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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