Introduction
The Competition Commission has referred the Johannesburg Stock Exchange (JSE) to the Competition Tribunal over alleged exclusionary conduct tied to mandatory use of the JSE’s broker-dealer accounting system and restrictions on matched principal trades. The dispute stems from a complaint by rival A2X and covers conduct from 2017 onward. The Commission seeks remedies that could include fines and rule changes. The JSE denies the allegations and plans to file a legal plea. These takeaways explain the core issues and possible impacts on brokers, platforms and investors. (Reuters)
Stock exchange: Takeaway 1 — Infrastructure can be a competitive lever
The referral highlights how control of technical infrastructure — in this case the BDA system — can be used, intentionally or not, to shape competitive outcomes. When a dominant venue requires use of internal systems that are not interoperable, it may raise barriers for challengers and limit the practical ability of brokers to route or settle trades through alternative platforms. Competition authorities scrutinise such effects where they materially harm rivals. (Reuters)
Stock exchange: Takeaway 2 — Rules matter as much as markets
Trading rules that look neutral on paper can produce exclusionary outcomes in practice. The Commission’s focus on differential treatment of matched principal trades shows that rule design — not only prices or fees — can prevent competitors from competing on equal footing. Regulators increasingly examine whether rules produce anti-competitive effects when dominant firms influence market architecture. (globalcompetitionreview.com)
Stock exchange: Takeaway 3 — Complaint-driven enforcement is powerful
A2X’s complaint triggered an industry-wide investigation that lasted several years and culminated in the referral. This demonstrates how rival firms, armed with evidence, can prompt competition authorities to investigate market practices that may otherwise remain unchallenged. Complaint-driven enforcement is a common path to regulatory action in complex markets. (Finextra Research)
Stock exchange: Takeaway 4 — Significant penalties are possible
The Commission has signalled it may seek up to 10% of the JSE’s turnover as a penalty if the Tribunal finds serious contravention. While fines are not automatic, the possibility of material financial sanctions underscores the gravity of the allegations and the financial risk for operators found to have engaged in exclusionary conduct. (News24)
Stock exchange: Takeaway 5 — JSE’s defense and procedural posture
The JSE has denied the claims and indicated it will file a detailed plea. By signalling an early legal contest, the exchange is preparing to dispute evidence and legal interpretations. The procedural timelines agreed with the Commission set the plea filing for early 2026, after which the Tribunal will map next steps. (Moneyweb)
Stock exchange: Takeaway 6 — Short-term uncertainty, long-term effects
While the immediate trading environment will continue, prolonged litigation can create uncertainty for brokers and challengers. However, if the Tribunal imposes remedies, the long-term effect may be to lower barriers to entry, encourage innovation and improve choices for market participants. The balance between short-term disruption and long-term competitiveness is a core policy debate in this case. (Reuters)
Stock exchange: Takeaway 7 — An international watchpoint
Observers in other jurisdictions will watch this referral as a precedent for how competition law treats dominant exchanges and their technical or rule-based gatekeeping. A firm Tribunal decision will become a reference point for regulators and competitors elsewhere where exchanges control essential infrastructure. (globalcompetitionreview.com)
Stock exchange: Practical steps for market participants
Brokers should map operational dependencies on exchange systems and plan for alternative routing and reconciliation workflows. Rival platforms should document interoperability challenges and preserve evidence. Regulators might consider technical standards to reduce processing frictions across venues, while investors should stay informed about execution quality and fees. (Reuters)
Stock exchange: How the evidence will matter
The Tribunal will examine whether technical and rule changes had the effect of foreclosing competitors. Evidence on interoperability attempts, technical grafting, client impacts and internal communications will be central. The Commission’s non-confidential affidavit gives a roadmap but the full evidentiary record will be revealed during Tribunal processes where documentary and witness evidence are tested. (Government of South Africa)
Stock exchange: Long-term governance questions
Beyond the immediate legal fight, the referral raises governance questions about how exchanges balance market stewardship and commercial incentives. Firms that operate critical market infrastructure must be mindful that business decisions and rule-making can attract competition scrutiny when they materially reduce market contestability. The JSE case may prompt exchanges to review rules and disclose interoperability plans to reduce legal risk. (globalcompetitionreview.com)
FAQs
Q: Does this affect share prices?
A: Stock exchange governance can affect market confidence; immediate price impact depends on investor reaction.
Q: Will trading stop on other venues?
A: Stock exchange operations continue; the referral targets rules and conduct, not platform operation bans.
Q: Who enforces outcomes if Tribunal rules against JSE?
A: Stock exchange enforcement would be through Tribunal orders and possible follow-up monitoring by the Competition Commission. (News24)
Conclusion
The Competition Commission’s referral of the JSE is a consequential test of how competition law applies to market infrastructure. The allegations over the BDA system and matched principal trades could reshape access to secondary markets and set an important precedent. For brokers, competitors and investors, the Tribunal’s eventual ruling will be a key milestone.
