Pretoria, November 9, 2025 — The South African Competition Commission (CompCom) has referred the Johannesburg Stock Exchange (JSE) to the Competition Tribunal, alleging that the bourse abused its dominance by engaging in exclusionary conduct that hindered competition from rival exchange A2X.
The referral, from October 1, accuses the JSE of contravening sections 8(c) and 8(1)(c) by engaging in practices that restrict market access and entrench its monopoly position in South Africa’s secondary equity trading market. The complaint alleges that the exclusionary conduct has persisted since at least 2017 and continues to this day.
Alleged Abuse of Dominance
According to the Commission’s founding affidavit, deposed by senior analyst Marlon Dasarath, the JSE’s conduct primarily involves two forms of exclusionary behaviour:
- Mandatory use of the Broker Dealer Accounting (BDA) system — The JSE allegedly compels brokers to use its proprietary post-trade accounting platform, which is not interoperable with A2X’s systems. This requirement raises costs for brokers, particularly smaller and historically disadvantaged firms, by forcing them to maintain duplicate systems to trade on both platforms.
- Discriminatory trade processing rules — The JSE is said to apply its internal rules asymmetrically, allowing itself to combine “on-book” and “off-book” trades in ways it denies to A2X brokers. It also allegedly restricts “reverse matched principal trades” that would allow trades executed on A2X to be settled through the JSE system.
The CompCom argues that these measures impede A2X’s growth, increase transaction costs, and reduce brokers’ ability to obtain best prices for clients — all while preserving the JSE’s dominant position in the secondary equities market.
Impact on Competition
The JSE commands over 45% market share, far exceeding the statutory threshold for dominance. The investigation found that A2X’s expansion has been materially constrained by interoperability barriers and the JSE’s restrictive interpretations of trading rules.
A2X, licensed in 2017, provides a lower-cost alternative for trading shares already listed on the JSE. It has argued that JSE’s conduct mirrors historical monopolistic behaviour and that the BDA system’s closed architecture prevents efficient cross-platform trading.
The Commission said the JSE’s rules “function as artificial barriers to entry and expansion,” leading to higher costs, reduced innovation, and diminished market liquidity — ultimately harming investors and brokers.
Remedies and Penalties Sought
The CompCom has asked the Tribunal to declare that the JSE contravened sections 8(c) and 8(1)(c) and seeks an order interdicting and restraining the JSE from continuing such conduct and compelling it to take remedial action to restore effective competition.
Among the remedies proposed, the authority wants the JSE to amend its trading rules to ensure full interoperability of its Broker Dealer Accounting (BDA) system with rival platforms such as A2X. This would allow brokers to trade and manage risk seamlessly across exchanges, reducing duplication and operational barriers.
The Commission also calls for the expansion of the Matched Principal Trade (MP Trade) mechanism to include off-book transactions, enabling brokers to issue a single contract note for trades conducted across both the JSE and other platforms. In addition, it seeks the creation of a reverse MP trade type, which would allow trades executed on the JSE’s system to be cleared or settled on A2X, further promoting cross-platform competition.
Finally, the CompCom has requested an administrative penalty on the JSE, amounting to up to 10% of the JSE’s annual turnover in South Africa.
