JSE Trading Member Requirements

Trading Member Capital Requirements

• Trading members without client margins must maintain an initial capital of at least R200,000.
• Trading members that hold client margins or assets are required to have a minimum initial capital of R400,000.
• The JSE reserves the right to suspend trading members if they fail to meet capital adequacy standards.

Notification Obligations

• Trading members are required to provide the JSE with a business address, postal address, and a secured electronic delivery address for notices.

Management and Oversight of Trading Members

• Trading members must be managed by individuals with strong reputations and high business standards, as per the JSE's evaluation.

Compensation Funds

• The JSE is authorized to establish Compensation Funds to cover claims arising from transactions before a trading member defaults.
• Claims covered by these funds are subject to rules defined by the Compensation Funds and are limited to liabilities from IRC securities transactions.
• The JSE can impose a levy on trading members based on their transactions, which can be recouped from clients involved in those transactions.
• Trustees manage the Compensation Funds, including their income and resources.

Settlement System Regulations

• The JSE may create or hire a third party to manage settlement systems.
• Trading members must adhere to prescribed procedures and requirements when using JSE settlement systems, including associated fees.

General Membership Requirements

• Applicants to become trading members must satisfy the JSE's specific eligibility criteria.
• The JSE maintains a register categorizing trading members according to their authorized user status.

Member Agreement Conditions

• Trading members can contract with only one clearing member for the clearing and settlement of transactions.
• Members must have adequate procedures and resources to effectively provide regulated services, adhere to regulations, manage funds properly, and maintain accurate records.

Client Transaction Management

• Trading members are responsible for timely reporting of clients' transactions and balances.
• They must fulfill financial resource requirements as dictated by their authorized user category.

Clearing and Custody Requirements

• Any trading member engaging in transactions cleared by JSE Clear must appoint a clearing member or be authorized as one.
• Trading bonds on the JSE trading system necessitates the appointment of a Central Securities Depository Participant (CSDP).

Registration of Officers

• Trading members must ensure that a compliance officer, a settlement officer, and an alternate settlement officer are registered with the JSE.