The role of cross-listings in establishing a Southern African Development Community regional stock exchange

Master's Thesis , 2013 , 121 Pages

Economics - Case Scenarios

It has been established that African stock markets are confronted with a multitude of problems which include, inadequate liquidity, low capitalisation, few market participants, a small number of listed companies and low trading volumes. As a result, their broader economic impact has so far been limited. The Southern Africa Development Community (SADC) stock markets with the exception of South Africa are small, both in terms of the number of listed companies and market capitalisation, and they display considerable illiquidity. In general, the SADC region has shallow and underdeveloped financial markets. Their development has been hampered by a number of factors which include; political and economic uncertainty, fiscal dominance, weak judicial institutions, limited investment opportunities in the private sector, technological constraints, and the shortage of skilled personnel with expertise in banking and finance. It is contended that all these problems could be eased through regional financial integration. The integration of African stock markets and the introduction of regional stock exchanges will promote cross-border listings and thus stimulate increased liquidity across markets. Thus, it is suggested that the integration of SADC’s stock markets and the creation of a regional stock exchange is one of the panaceas to overcome Africa’s stock market problems. A regional stock exchange has the potential for tremendous benefits for both local and foreign investors, as well as for business enterprises in the region

Inhaltsverzeichnis (Table of Contents)

• Chapter One: Introduction
• 1.1 Background to the Study
• 1.2 Statement of the Problem
• 1.3 Objectives of the Study
• 1.4 Research Questions
• 1.5 Significance of the Study
• 1.6 Scope and Delimitations of the Study
• 1.7 Methodology
• Chapter Two: Literature Review
• 2.1 Introduction
• 2.2 The Southern African Development Community (SADC)
• 2.2.1 The Origins of the SADC
• 2.2.2 Objectives of the SADC
• 2.2.3 The Institutions of the SADC
• 2.2.4 SADC's Role in Regional Integration
• 2.3 The Concept of Stock Exchanges
• 2.4 Cross-Listing of Securities
• 2.5 Benefits of Regional Stock Exchanges
• 2.6 Challenges of Regional Stock Exchanges
• 2.7 Conclusion
• Chapter Three: The Role of Cross-Listings in Establishing a SADC Regional Stock Exchange
• 3.1 Introduction
• 3.2 Advantages and Disadvantages of Cross-Listings
• 3.2.1 Advantages
• 3.2.2 Disadvantages
• 3.3 Regulatory Framework for Cross-Listings in the SADC Region
• 3.4 The Role of the Committee of Southern Africa Development Community Exchanges (COSSE)
• 3.4.1 The Role of COSSE in Fostering Regional Integration
• 3.4.2 COSSE's Role in Promoting Cross-Listing and the Establishment of a Regional Stock Exchange
• 3.5 Case Study: The Johannesburg Stock Exchange (JSE)
• 3.6 Conclusion
• Chapter Four: Recommendations and Conclusion
• 4.1 Introduction
• 4.2 Recommendations
• 4.3 Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis explores the potential role of cross-listings in establishing a regional stock exchange within the Southern Africa Development Community (SADC) region. It examines the advantages and disadvantages of cross-listing, as well as the regulatory framework for cross-listings in the SADC. The thesis also analyzes the role of the Committee of Southern Africa Development Community Exchanges (COSSE) in fostering regional integration and promoting cross-listing.

• The importance of regional stock exchanges in promoting economic growth and development.
• The benefits and challenges of cross-listing securities across different national markets.
• The role of regulatory frameworks in facilitating cross-listings and regional stock exchange integration.
• The significance of institutions like COSSE in promoting collaboration and coordination among SADC stock exchanges.
• The case study of the Johannesburg Stock Exchange (JSE) and its role in the SADC region.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter One introduces the background of the study, outlines the research problem and objectives, and describes the study's scope and methodology.
• Chapter Two reviews the existing literature on regional integration, stock exchanges, and cross-listings. It examines the SADC's history, objectives, and role in regional integration, as well as the concept of stock exchanges and the benefits of cross-listing securities.
• Chapter Three focuses on the role of cross-listings in establishing a SADC regional stock exchange. It analyzes the advantages and disadvantages of cross-listings, discusses the regulatory framework for cross-listings in the SADC region, and explores the role of COSSE in fostering regional integration and promoting cross-listing.

Schlüsselwörter (Keywords)

This thesis focuses on the SADC regional stock exchange, cross-listings, and the role of COSSE in promoting regional integration and capital markets development. Key terms include SADC, regional stock exchange, cross-listing, capital markets integration, COSSE, and Johannesburg Stock Exchange.

• Course: LLM in International Trade, Investment and Business Law in Africa
• Author: Moses Wisdom Chisadza (Author)
• Publication Year: 2013
• Pages: 121
• Catalog Number: V267629
• ISBN (eBook): 9783656576471
• ISBN (Book): 9783656576464
• Language: English
• Tags: southern, african, development, community