The Johannesburg Stock Exchange has introduced new rules requiring brokers and trading firms to implement stronger risk controls around algorithmic trading, making it the first African exchange to formally regulate the practice. The rules mandate that firms properly design, test, and monitor their trading algorithms, with accountability resting on senior management. Meanwhile, brokers who offer direct market access must assume responsibility for clients’ algorithmic trading activity. The reforms are designed to reduce risks associated with software failures, erroneous orders, market manipulation, and excessive trading activity while aligning the exchange with international standards already used in the United States and Europe. Industry experts say the measures will improve market integrity without discouraging technological innovation, helping safeguard Africa’s largest stock exchange while supporting continued growth in automated trading and investor confidence.
African Business