The JSE has advised its shareholders that the Competition Commission has referred the JSE to the Competition Tribunal for prosecution.

In a November 10 statement, the JSE says the commission did not provide details in its announcement, on social media, on November 9, or in the non-confidential version of its referral affidavit to the tribunal.

The referral affidavit, published on the commission’s social media accounts, is dated October 1.

The JSE says it is preparing its plea to the commission's referral, which, by agreement with the commission and with the consent of the tribunal, will be filed in early 2026.

Given the nature of these proceedings, the JSE notes that it cannot determine if or when

the matter will proceed to trial.

The referral arises from a complaint that fellow stock exchange A2X Markets submitted to the commission in October 2022, alleging that the JSE is abusing a dominant market position by engaging in exclusionary conduct concerning the JSE's broker dealer accounting (BDA) system and matched principal (MP) trade type.

The JSE posits that it has cooperated fully with the commission throughout its investigation.

“The JSE denies these allegations in the strongest possible terms and has been advised by external legal counsel that the commission’s claims are without merit.

“The commission's referral seeks an order from the tribunal that the JSE amend its rules relating to the BDA system and the MP trade type, as well as a potential administrative penalty,” the stock exchange notes.

A2X Markets has welcomed the commission's decision to recommend that allegations of anti-competitive behaviour by the JSE be referred to the tribunal, following a three-year industry-wide investigation.

A2X argues that, for more than a century, South Africa's equity market has been dominated by a single player.

A2X CEO Kevin Brady says the “numbers reveal the consequences”, which include fewer listings, stagnant liquidity and rising costs that deter both issuers and investors.

“Our market must embrace competition to create the dynamic capital market that South Africa needs,” he adds.

A2X notes that international experience shows that, when regulators enable fair, open competition between exchanges, costs drop, innovation and liquidity grow and more companies list.

It explains that jurisdictions such as Europe, Australia and India have all benefited from introducing competitive exchange frameworks.

“A2X has seen several tactics by the JSE, including their arguments that competition introduces systemic risk and that new players are inadequately regulated. These arguments ring hollow when viewed against international experience and A2X’s eight-year record.

"We are hopeful that, with new leadership at the JSE, there will be a shared commitment to growing South Africa's capital markets. The commission has rightly identified that market growth requires fair competition – something that benefits all investors, listed companies and, ultimately, the broader South African economy."