JSE All Share Index plunged by 35% since mid-Feb

JSE stocks have plunged the most since the 1997 in 'panic' sell-offs.

Leila Fourie, CEO at the JSE, tells Bruce Whitfield how the JSE is coping with the sudden and unprecedented value drops and trade volumes.

The all-share is down by more than 30 per cent, resources down by more than 40 per cent, financials are down by 40 per cent. If we look at the volume of trade we had to process on average we process about 280-thousand deals a day. Over the past few weeks on average we've been processing more than 700-thousand trades a day. You can imagine the kind of pressure that puts on both back office systems as well as the trading systems.

Leila Fourie, Group CEO - JSE

The major concerns in this sort of set-up are either operational risk - so systems going down - or liquidity issues. Insofar as operational issues go - our systems have been able to handle the load.

There are of course issues that you need to manage around short-sales and making sure you can settle all deals. We have been able to manage that, my teams have been absolutely phenomenal as well as the bank teams.

Leila Fourie, Group CEO - JSE

Insofar as liquidity goes, our main concern here is where you see massive spikes or price drops - can the trader make good on that deal?
So we closely manage the margin calls. But so far everything is running very smoothly.

Leila Fourie, Group CEO - JSE
The Johannesburg Stock Exchange. Picture: The JSE Group Facebook page

Listen to the entire interview below.

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