Reviewed condensed consolidated interim financial statements

August 17, 2010 at 10:11 AM EDT
JSE                                                                             
JSE - JSE Limited - Reviewed condensed consolidated interim financial statements
for the six months ended 30 June 2010                                           
JSE Limited                                                                     
(Registration number 2005/022939/06)                                            
(Incorporated in the Republic of South Africa)                                  
ISIN Code: ZAE000079711                                                         
Share code: JSE                                                                 
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS 
ENDED 30 JUNE 2010                                                              
Unless otherwise indicated, all comparatives refer to the six months ended 30   
June 2009.Percentage changes have been calculated on unrounded numbers.         
The first half of 2010 was a volatile one for local markets. Mirroring this     
uncertainty, the main equity index of the Johannesburg Stock Exchange (JSE) rose
to 29 500 by mid-April but dropped to 26 259 by end-H1 2010.                    
Fluctuating sentiment was good for JSE Limited, the company that operates the   
exchange. Group revenue climbed 14.5% to R623.3 million (H1 2009: R544.5        
million) largely owing to increased trade on the spot equities market.          
Foreigners were again net investors, investing R19.1 billion in South African   
equities and R36.2 billion in local bonds. Liquidity on the equities market rose
to 53% for the period (H1 2009: 48.8%). Investors remained hesitant about equity
derivatives though commodity derivatives recovered somewhat, rising 15.9% to    
R20.6 million (H1 2009: R17.8 million). As a result, the overall performance of 
the Group remained resilient.                                                   
The 14.5% increase in revenue combined with controlled operating costs led to a 
13.1% increase in net profit after tax to R207.6 million (H1 2009: R183.5       
million).                                                                       
During H1 2010, personnel expenses rose by 16.7% compared with the previous     
period. This was owing to the unwinding of the discount on the deferred cash    
bonus liability (R5.0 million), an average salary increase of 8.6% granted with 
effect from 1 January 2010 and a 2.7% increase in headcount to 420 permanent    
employees (Dec 2009: 409).                                                      
A new long term incentive scheme was approved by shareholders at the annual     
general meeting in April 2010. This new scheme ("LTIS 2010") replaces the       
previous long term schemes operated by the JSE, and accordingly no further      
tranches will be awarded under these earlier schemes. Tranches already awarded  
under the previous schemes will run their normal course. During the period under
review, the LTIS 2010 scheme resulted in a share based payment charge of R1.7   
million (2009: Rnil).                                                           
Other expenses increased by 11.3%. The factors underlying this increase include 
increased spending in consulting fees and computer costs of R2.3 million and    
R3.5 million respectively, the impairment adjustment of R1.8 million to the loan
granted to the JSE Empowerment Fund Trust, and the recognition of the provision 
for onerous costs (R4.0 million) associated with the Melrose Arch lease. (The   
lease resulted from the JSE's acquisition of the Bond Exchange of South Africa  
(BESA) in 2009).                                                                
Net finance income fell by 25% due to lower interest rates and lower funds under
management.                                                                     
The effective tax rate for the period under review was 33% (H1 2009: 34%).      
Turning to the Group's revenue sources:                                         
-    Six new company listings occurred during H1 2010 - five on the main board  
    (one of which on the Africa Board) and one on AltX - compared with four in  
    H1 2009. This is in line with listings numbers on member exchanges of the   
    World Federation of Exchanges. Though there is a new listings pipeline, the 
    JSE cannot predict new listings prospects as the decision to list remains   
    that of the company concerned. Revenue in the JSE's Issuer Services         
    division, which handles new listings, increased 17.5% (H1 2010: R45.8       
    million; H1 2009: R39.0 million). This includes interest rate market issuer 
    services activity which was not included in the previous period. Like for   
    like, and including equities-related revenue only, H1 2010 revenue fell by  
    1% on the previous period.                                                  
-    The number of spot equities market transactions rose 22.4% (H1 2010: 12.2  
    million; H1 2009: 10.0 million), generating revenue of R164.8 million (H1   
    2009: R145.3 million), a 13.4% increase.                                    
-    The average value per trade is declining in line with world markets,       
    largely owing to algorithmic trade strategies. The total value of equities  
    trades conducted on the exchange is up 15.4% year-on-year (H1 2010: R1.5    
    trillion; H1 2009: R1.3 trillion).                                          
-    The equities team continued to focus on encouraging increased use of the   
    Exchange's products and services. First, a new billing model was introduced 
    in March 2010 to reduce total trading costs, encourage high frequency       
    trading and reward high volume participants. Trade volumes have increased   
    since. Second, the Exchange added an anonymous trading facility which       
    allows for the execution of large trades through hidden order functionality 
    in the central order book.                                                  
-    The JSE views the South African retail market as a long-term growth area   
    and continues to pursue its strategy of increasing the financial knowledge  
    of South Africans with the aim of growing numbers of retail investors and   
    adding to trade volumes. During the period, the Exchange visited a number   
    of smaller cities country-wide to pursue this strategy.                     
-    New product innovation remains one of the Exchange's strengths. In the     
    interim period, the commodity derivatives team focused on expanding the     
    product range launched in partnership with the CME Group (the world's       
    largest derivatives exchange), recently introducing soya complex contracts. 
    The equity team focused on a new range of commodity warrants and on         
    collective investment products including exchange traded funds aimed at     
    retail and institutional investors. New products were also added on other   
    JSE markets.                                                                
-    The number of equity derivatives contracts traded rose by 6% to 84.2       
    million (H1 2009: 79.4 million). The biggest increases came from derivative 
    contracts on international shares. Value traded rose 26.2%. Despite this,   
    revenues eased by 0.7% to R53.3 million (H1 2009: R53.7 million) mainly     
    owing to two shifts in the product mix: first, a move from options to       
    futures, and second, a drop in the value of Can Do derivatives traded       
    during H1 2010 compared with the previous period.                           
-    Effective 6 July 2010, the JSE adopted a maker-taker model for its equity  
    derivatives market. This change is aimed at making pricing structures more  
    equitable by rewarding participants bringing liquidity to the market,       
    encouraging greater activity and transparency. We have begun to see more    
    use of our on line trading system since the introduction of the new pricing 
    model.                                                                      
-    The number of commodity derivatives contracts traded increased by 12.1% (H1
    2010: 1 011 712; H1 2009: 902 370). Commodity options accounted for most of 
    this growth, owing to volatility in agricultural prices at the start of     
    2010. This shift in product mix impacted favourably on revenues which rose  
    15.7% to R20.6 million (H1 2009: R17.8 million) during the period.          
-    The Interest Rate division generated trade reporting revenue of R16.4      
    million. Reported cash volumes in H1 2010 climbed to R7.33 trillion (H1     
    2009: R6.88 trillion). Open interest for all interest rate derivatives      
    products topped the R100,000 mark for the first time in the interest rate   
    exchange traded products history.                                           
-    Revenue generated by the Information Products Sales division, which is     
    focusing on new and existing offshore clients in a tough market following   
    the downsizing of several global institutions, climbed 6.5% to R58.7        
    million (H1 2009: R55.1 million). New product development continues.        
    Marketing efforts are currently focused on the FTSE/JSE Equally-Weighted    
    Top40 Index, launched during the period.                                    
PROSPECTS                                                                       
2010 is a year of consolidation for the JSE:                                    
-    Following the BESA acquisition effective 22 June 2009, dialogue with       
    interest rate market participants and industry groups is continuing. The    
    process is taking longer than anticipated; however the JSE remains          
    convinced that it will succeed in introducing a strategy which will succeed 
    in growing the Exchange traded interest spot and derivative market.         
-    The JSE continues to pursue its Africa strategy, which has gained momentum 
    since 2009 with the launch of the Africa Board, a platform for African      
    companies domiciled outside South Africa. In April 2010, the Africa Board   
    welcomed its second listing, Wilderness Holdings. Companies from elsewhere  
    on the continent have also publically stated their interest in listing on   
    the Africa Board. This interest is prompted, in part, by the JSE's focused  
    marketing efforts and growing global investor interest in Africa as an      
    investment destination. The Exchange continues to talk to prospective       
    issuers about the benefits of listing on the Africa Board and looks forward 
    to welcoming some new listings in the coming period.                        
-    The JSE's technology systems replacement project (SRP) is proceeding. The  
    replacement of the last of the three major systems, including the           
    replacement of the JSE's back office system (the Broker Dealer Accounting   
    system or BDA), is currently in the testing phase. Initial tests have       
    proved successful. The Exchange will announce the due date for              
    implementation in due course.                                               
-    During H1 2010, trading and clearing engines in the JSE's equity and       
    commodity derivatives markets were upgraded. Exchange traded currency and   
    interest rate derivatives will be moved to the system in due course.        
                                                                                
    The JSE remains committed to delivering value to issuers and investors. The 
    focus is on consistent work to build a sustainable business model, with     
    depth and breadth. The Board is optimistic that this should be achieved     
    through the strategic objectives discussed above, combined with the         
    strength of JSE regulation and the quality of the JSE's service.            
-    In March 2010, the Exchange said that, in 2010, it would consolidate the   
    BESA acquisition, make continued improvements in IT, launch a new billing   
    model for equities trading and launch initiatives such as Block-X (the dark 
    pool facility) in response to client needs. As reported above, the JSE has  
    delivered on certain of these targets. It will deliver on the remainder     
    during H2 FY2010.                                                           
-    As a significant portion of revenue is dependent on the level of trades on 
    the Exchange, the JSE is not able to predict future profits. There is no    
    guarantee that first half trading volumes will be sustained throughout      
    2010.                                                                       
-    The JSE will continue to focus on increasing liquidity and improving market
    competitiveness.                                                            
-    In the equity derivatives market, the Exchange will work to encourage on-  
    exchange central order book trading. It will also work on providing         
    services to clients who previously traded off-exchange but who now want to  
    trade on-exchange to manage risk.                                           
-    In H2 2010, additional hard commodity instruments will be launched under   
    licence from the CME Group.                                                 
-    The JSE will also focus on delivering the intended benefits of the BESA    
    acquisition. The interest rate team aims to implement the following during  
    H2 2010:                                                                    
-    A single set of listings requirements;                                     
-    A single set of trading rules; and                                         
-    An improved pre-trade price discovery process, to be disseminated through  
    the Nutron system.                                                          
-    The Exchange also continually strives to grow its other markets and revenue
    streams.                                                                    
For and on behalf of the Board                                                  
HJ Borkum             RM Loubser                                                
Chairman              Chief Executive Officer                                   
17 August 2010                                                                  
Sandton                                                                         
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME                          
for the six months ended 30 June 2010                                           
                                     JSE Group                                  
                                     six months ended         year ended        
                                     30 June                  31 December       
                                     2010         2009        2009              
                                     (reviewed)   (reviewed)  (audited)         
                            Note     R'000        R'000       R'000             
Revenue                      7         623 301      544 515    1 155 756        
Other income                           21 102       8 583       40 547          
Personnel expenses                    (150 871)    (129 272)   (318 632)        
Other expenses                        (242 340)    (217 720)   (491 774)        
Profit/(loss) before net               251 192      206 106     385 897         
finance income                                                                  
Finance income                         536 987      736 322    1 325 473        
Finance costs                         (493 337)    (677 789)   (1 221 347)      
Net finance income                     43 650       58 533      104 126         
Share of profit of equity                                                       
accounted investees                                                             
(net of income tax)                    14 225       13 223      27 937          
Profit  before tax                     309 067      277 862     517 960         
Income tax expense                    (101 508)    (94 321)    (152 359)        
Profit for the period                  207 559      183 541     365 601         
Other comprehensive income                                                      
Net change in fair value of           (7 865)       1 474       38 187          
available-for-sale financial                                                    
assets                                                                          
Net change in fair value of           (9 229)      (1 221)     (9 087)          
available-for-sale financial                                                    
assets transferred to profit                                                    
or loss                                                                         
Income tax on other                   -            -           -                
comprehensive income                                                            
Other comprehensive                   (17 094)       253        29 100          
(loss)/income for the                                                           
period, net of income tax                                                       
Total comprehensive                    190 465      183 794     394 701         
income/(loss) for the period                                                    
Profit/(loss) attributable                                                      
to:                                                                             
Owners of the Company                  207 559      183 539     367 244         
Non-controlling interest              -              2         (1 643)          
Profit for the period                  207 559      183 541     365 601         
Total comprehensive                                                             
income/(loss) attributable                                                      
to:                                                                             
Owners of the Company                  190 465      183 792     396 344         
Non-controlling interest              -              2         (1 643)          
Total comprehensive                    190 465      183 794     394 701         
income/(loss) for the period                                                    
Earnings per share                                                              
Basic earnings per share               244.1        215.6       431.3           
(cents)                                                                         
Diluted earnings per share             240.4        212.5       425.2           
(cents)                                                                         
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)              
for the six months ended 30 June 2010                                           
                                     Investor Protection Funds*                 
                                     six months ended         year ended        
                                     30 June                  31 December       
                                     2010         2009        2009              
                                     (reviewed)   (reviewed)  (audited)         
                                     R'000        R'000       R'000             
Revenue                               -              55        -                
Other income                           11 299       4 110       13 165          
Personnel expenses                    -            -           -                
Other expenses                        (7 599)      (6 453)     (13 142)         
Profit/(loss) before net               3 700       (2 288)       23             
finance income                                                                  
Finance income                         4 393        2 400       7 518           
Finance costs                         -            -           -                
Net finance income                     4 393        2 400       7 518           
Share of profit of equity                                                       
accounted investees                                                             
(net of income tax)                   -            -           -                
Profit  before tax                     8 093         112        7 541           
Income tax expense                    -            -           -                
Profit for the period                  8 093         112        7 541           
Other comprehensive income                                                      
Net change in fair value of           (7 865)       1 474       38 187          
available-for-sale financial                                                    
assets                                                                          
Net change in fair value of           (9 229)      (1 221)     (9 087)          
available-for-sale financial                                                    
assets transferred to profit                                                    
or loss                                                                         
Income tax on other                   -            -           -                
comprehensive income                                                            
Other comprehensive                   (17 094)       253        29 100          
(loss)/income for the                                                           
period, net of income tax                                                       
Total comprehensive                   (9 001)        365        36 641          
income/(loss) for the period                                                    
Profit/(loss) attributable                                                      
to:                                                                             
Owners of the Company                  8 093         112        7 541           
Non-controlling interest              -            -           -                
Profit for the period                  8 093         112        7 541           
Total comprehensive                                                             
income/(loss) attributable                                                      
to:                                                                             
Owners of the Company                 (9 001)        365        36 641          
Non-controlling interest              -            -           -                
Total comprehensive                   (9 001)        365        36 641          
income/(loss) for the period                                                    
Earnings per share                                                              
Basic earnings per share               9.5          0.1         8.9             
(cents)                                                                         
Diluted earnings per share            9.4           0.7         8.7             
(cents)                                                                         
*Investor Protection Funds comprises the JSE Guarantee Fund Trust, JSE          
Derivatives Fidelity Fund Trust and BESA Guarantee Fund Trust (the "Trusts").   
The JSE maintains these Trusts for investor protection purposes as required     
under the Securities Services Act 36, of 2004. The JSE is required to           
consolidate the Trusts into the results of the Group in terms of International  
Financial Reporting Standards (IFRS). However, as these Trusts are legally      
separate from the JSE, neither the JSE nor its shareholders have any right to   
the net assets of these Trusts on winding up. In certain limited circumstances, 
the JSE is entitled to the income of the Trusts for investor protection         
purposes, with the approval of the Financial Services Board. For enhanced       
understanding, the Trusts have been shown separately, (before intercompany      
adjustments), although, for compliance with IFRS, the results form part of the  
Group financial statements.                                                     
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION                            
as at 30 June 2010                                                              
                                      JSE Group                                 
                                      six months ended       year ended         
                                      30 June                31 December        
                                      2010        2009       2009               
                                      (reviewed)  (reviewed) (audited)          
                                      R'000       R'000      R'000              
Assets                                                                          
Non-current assets                      918 478     802 548    874 301          
Property and equipment                  84 222      90 672     87 301           
Intangible assets                       439 009     378 138    382 749          
Investments in equity                   82 795      78 163     92 874           
accounted investees                                                             
Other investments                       228 701     191 677    239 538          
Derivative financial                    2 268       3 069      1 451            
instruments                                                                     
Due from the JSE Empowerment            13 315     -          -                 
Fund Trust                                                                      
Deferred tax asset                      68 168      60 829     70 388           
Current assets                         16 184 414  14 987 542 15 702 377        
Derivative financial                     252       -          -                 
instruments                                                                     
Trade and other receivables             172 928     162 377    210 918          
Income tax receivable                   34 064      27 972     29 641           
Due from group entities                 1 763      -          -                 
Margin and collateral deposits         15 069 020  13 955 414 14 541 021        
Cash and cash equivalents               906 387     841 779    920 797          
Total assets                           17 102 892  15 790 090 16 576 678        
Equity and liabilities                                                          
Total equity                           1 601 262   1 395 436  1 604 724         
Non-current liabilities                 204 965     216 008    195 258          
Finance lease                           2 046       1 459      3 333            
Employee benefits                       75 241      57 046     64 625           
Deferred tax liability                  5 380       25 252     5 587            
Operating lease liability              67 808       73 455     70 529           
Provision for onerous contract         4 049       -          -                 
Investor Protection Levy                49 391      47 811     50 165           
Loans and borrowings                   -            10 000    -                 
Due to SAFEX members                    1 050        985       1 019            
Current liabilities                    15 296 665  14 178 646 14 776 696        
Trade and other payables                169 097     178 312    159 762          
Employee benefits                       53 106      40 076     70 571           
Operating lease liability               5 442       4 844      5 342            
Due to group entities                  -           -          -                 
Margin and collateral deposits         15 069 020  13 955 414 14 541 021        
Total equity and liabilities           17 102 892  15 790 090 16 576 678        
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (CONTINUED)                
as at 30 June 2010                                                              
                                      Investor Protection Funds                 
                                      six months ended       year ended         
                                      30 June                31 December        
                                      2010        2009       2009               
                                      (reviewed)  (reviewed) (audited)          
                                      R'000       R'000      R'000              
Assets                                                                          
Non-current assets                      228 698     191 674    239 536          
Property and equipment                 -           -          -                 
Intangible assets                      -           -          -                 
Investments in equity                  -           -          -                 
accounted investees                                                             
Other investments                       228 698     191 674    239 536          
Derivative financial                   -           -          -                 
instruments                                                                     
Due from the JSE Empowerment           -           -          -                 
Fund Trust                                                                      
Deferred tax asset                     -           -          -                 
Current assets                          119 002     132 909    122 584          
Derivative financial                   -           -          -                 
instruments                                                                     
Trade and other receivables              719         449       4 274            
Income tax receivable                  -           -          -                 
Due from group entities                -           -           2 200            
Margin and collateral deposits         -           -          -                 
Cash and cash equivalents               118 283     132 460    116 110          
Total assets                            347 700     324 583    362 120          
Equity and liabilities                                                          
Total equity                            347 049     323 367    357 888          
Non-current liabilities                -           -          -                 
Finance lease                          -           -          -                 
Employee benefits                      -           -          -                 
Deferred tax liability                 -           -          -                 
Operating lease liability              -           -          -                 
Provision for onerous contract         -           -          -                 
Investor Protection Levy               -           -          -                 
Loans and borrowings                   -           -          -                 
Due to SAFEX members                   -           -          -                 
Current liabilities                      651        1 216      4 232            
Trade and other payables                 324        1 216      3 061            
Employee benefits                      -           -          -                 
Operating lease liability              -           -          -                 
Due to group entities                    327       -           1 171            
Margin and collateral deposits         -           -          -                 
Total equity and liabilities            347 700     324 583    362 120          
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY                   
for the six months ended 30 June 2010                                           
                     Attributable to equity holders of the Company              
                                           Non-                                 
                                           distribu-            JSE             
                     Share      Share      table      BBBEE     LTIS 2010       
                     capital    premium    reserve    reserve   reserve         
                     R'000      R'000      R'000      R'000     R'000           
Group                                                                           
Balance at             8 514      162 779    10 058     165 503  -              
31 December 2008                                                                
(audited)                                                                       
Total comprehensive   -          -          -          -         -              
income for the                                                                  
period                                                                          
Total transactions    -          -          -          (4 469)   -              
with owners                                                                     
Non-controlling       -          -          -          -         -              
interest in BESA                                                                
Group                                                                           
Transfer to the BESA  -          -          -          -         -              
Guarantee Fund                                                                  
Trust*                                                                          
Balance at 30 June     8 514      162 779    10 058     161 034  -              
2009 (reviewed)                                                                 
Balance at             8 514      162 779    10 058     165 503  -              
31 December 2008                                                                
(audited)                                                                       
Total comprehensive   -          -          -          -         -              
income for the year                                                             
Total transactions    -          -          -          (5 311)   -              
with owners                                                                     
Non-controlling       -          -          -          -         -              
interest in BESA                                                                
Group                                                                           
Minority share of     -          -          -          -         -              
losses                                                                          
Transfer to the BESA  -          -          -          -         -              
Guarantee Fund                                                                  
Trust*                                                                          
Balance at             8 514      162 779    10 058     160 192  -              
31 December 2009                                                                
(audited)                                                                       
Total comprehensive   -          -          -          -         -              
income for the                                                                  
period                                                                          
Transactions with                                                               
owners, recorded                                                                
directly in equity                                                              
Contributions by and  -          -          -          (137)     -              
distributions to                                                                
owners BBBEE reserve                                                            
Options lapsed        -          -          -          (137)     -              
transferred to                                                                  
retained earnings                                                               
Treasury shares       (48)       (32 056)   -          -          -             
(refer to note 6)                                                               
Treasury shares -     -          (65)       -          -         -              
share issue costs                                                               
Equity settled share  -          -          -          -         1 711          
based payments                                                                  
Dividends paid to     -          -          -          -         -              
equity holders                                                                  
Total contributions   (48)       (32 121)   -          (137)      1 711         
by and distributions                                                            
to owners                                                                       
Total transactions    (48)       (32 121)   -          (137)      1 711         
with owners                                                                     
Balance at 30 June     8 466      130 658    10 058     160 055   1 711         
2010 (reviewed)                                                                 
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED) for   
the six months ended 30 June 2010                                               
                    Attributable to equity holders of the Company               
                               Non-      Total                                  
                               Control-  exchange   Investor                    
                    Retained   ling      and sub-   Protection  Total           
                    earnings   interest  sidiaries  Funds       Group           
                    R'000      R'000     R'000      R'000       R'000           
Group                                                                           
Balance at            799 141   -         1 145 995   227 497    1 373 492      
31 December 2008                                                                
(audited)                                                                       
Total comprehensive   183 427     2        183 429     365        183 794       
income for the                                                                  
period                                                                          
Total transactions   (159 000)  -         (163 469)  -           (163 469)      
with owners                                                                     
Non-controlling      -           1 619     1 619     -            1 619         
interest in BESA                                                                
Group                                                                           
Transfer to the      (95 505)   -         (95 505)   95 505      -              
BESA Guarantee Fund                                                             
Trust*                                                                          
Balance at 30 June    728 063    1 621    1 072 069  323 367     1 395 436      
2009 (reviewed)                                                                 
Balance at            799 141   -         1 145 995   227 497    1 373 492      
31 December 2008                                                                
(audited)                                                                       
Total comprehensive   358 060   -          358 060    36 641      394 701       
income for the year                                                             
Total transactions   (158 158)  -         (163 469)  -           (163 469)      
with owners                                                                     
Non-controlling      -           1 643     1 643     -            1 643         
interest in BESA                                                                
Group                                                                           
Minority share of    -          (1 643)   (1 643)    -           (1 643)        
losses                                                                          
Transfer to the      (95 676)   -         (95 676)    95 676     -              
BESA Guarantee Fund                                                             
Trust*                                                                          
Balance at            903 367   -         1 244 910   359 814    1 604 724      
31 December 2009                                                                
(audited)                                                                       
Total comprehensive   199 282   -          199 282   (8 817)      190 465       
income for the                                                                  
period                                                                          
Transactions with                                                               
owners, recorded                                                                
directly in equity                                                              
Contributions by       137      -         -          -           -              
and distributions                                                               
to owners BBBEE                                                                 
reserve                                                                         
Options lapsed         137      -         -          -           -              
transferred to                                                                  
retained earnings                                                               
Treasury shares      -          -         (32 104)   -           (32 104)       
(refer to note 6)                                                               
Treasury shares -    -          -         (65)       -           (65)           
share issue costs                                                               
Equity settled       -          -         1 711      -           1 711          
share based                                                                     
payments                                                                        
Dividends paid to    (163 469)  -         (163 469)  -           (163 469)      
equity holders                                                                  
Total contributions  (163 332)  -         (193 927)  -           (193 927)      
by and                                                                          
distributions to                                                                
owners                                                                          
Total transactions   (163 332)  -         (193 927)  -           (193 927)      
with owners                                                                     
Balance at 30 June    939 317   -         1 250 265   350 997    1 601 262      
2010 (reviewed)                                                                 
* The transfer represents the isolation in the BESA Guarantee Fund Trust of the 
value on acquisition by the JSE of the Trust.                                   
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS                          
for the six months ended 30 June 2010                                           
                                   JSE Group                                    
                                   six months ended           year ended        
                                   30 June                    31 December       
                                   2010         2009          2009              
                                   (reviewed)   (reviewed)    (audited)         
                                   R'000        R'000         R'000             
Net cash inflow from                 216 871      185 965       354 561         
operating activities                                                            
Net cash (used in)/from             (65 976)     (127 041)     (209 621)        
investing activities                                                            
Net cash outflow from               (165 305)    (163 486)     (170 484)        
financing activities                                                            
Net (decrease)/increase in          (14 410)     (104 562)     (25 544)         
cash and cash equivalents                                                       
Cash and cash equivalents at         920 797      946 341       946 341         
beginning of period                                                             
Cash and cash equivalents at         906 387      841 779       920 797         
end of period                                                                   
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS (CONTINUED)              
for the six months ended 30 June 2010                                           
                                   Investor Protection Funds                    
                                   six months ended           year ended        
                                   30 June                    31 December       
                                   2010         2009          2009              
                                   (reviewed)   (reviewed)    (audited)         
                                   R'000        R'000         R'000             
Net cash inflow from                 1 037        3 727          558            
operating activities                                                            
Net cash (used in)/from              2 972        98 067        86 901          
investing activities                                                            
Net cash outflow from               (1 836)      -             (2 015)          
financing activities                                                            
Net (decrease)/increase in           2 173        101 794       85 444          
cash and cash equivalents                                                       
Cash and cash equivalents at         116 110      30 666        30 666          
beginning of period                                                             
Cash and cash equivalents at         118 283      132 460       116 110         
end of period                                                                   
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS                
for the six months ended 30 June 2010                                           
1. Reporting entity#                                                            
JSE Limited (the "Company", the "JSE" or the "Exchange") is a company domiciled 
in the Republic of South Africa. The condensed consolidated interim financial   
statements of the Company as at and for the six months ended 30 June 2010       
comprise the Company and its subsidiaries (together referred to as the "Group") 
and the Group's interests in associates. The JSE is licensed as an exchange in  
terms of the Securities Services Act, No 36 of 2004.                            
2. Statement of compliance#                                                     
These condensed consolidated interim financial statements have been prepared in 
accordance with International Financial Reporting Standards (IFRS), IAS 34,     
Interim Financial Reporting and the AC 500 series pronouncements issued by the  
Accounting Practices Board of SAICA. They do not include all of the information 
required for full annual financial statements and should be read in conjunction 
with the consolidated financial statements of the Group as at and for the year  
ended 31 December 2009.                                                         
These condensed consolidated interim financial statements were approved by the  
Board of Directors on 17 August 2010.                                           
3. Significant accounting policies#                                             
    a) Change in accounting policies                                            
    The accounting policies applied by the Group in these condensed             
    consolidated interim financial statements are the same as those applied by  
    the Group in its consolidated financial statements as at and for the year   
    ended 31 December 2009.                                                     
    b) Accounting policies for new transactions and events                      
    The JSE LTIS 2010 Trust was formed for the benefit of the Group to          
    incentivise its employees. The purpose of this Trust is limited to the      
    purchase, holding and disposal of shares in terms of the JSE LTIS 2010      
    Scheme, (the "Scheme"), as well as to administer the Scheme. The JSE LTIS   
    2010 Trust meets the definition of a special purpose entity and is required 
    to be consolidated in terms of SIC 12, Consolidation of Special Purpose     
    Entities. IFRSs do not provide specific guidance on the treatment in the    
    Company's separate financial statements of contributions to a trust to      
    enable the trust to purchase shares in the market. Consequently the JSE has 
    elected to treat the JSE LTIS 2010 Trust as an agent of the JSE.            
4. Comparative figures#                                                         
Where necessary, comparative figures have been reclassified to conform to       
changes in presentation as reported in the consolidated financial statements as 
at and for the year ended 31 December 2009. Refer to notes 5 and 7. Unless      
otherwise indicated comparative figures refer to the six months ended 30 June   
2009.                                                                           
5. Operating segments#                                                          
Information about reportable segments                                           
                                                               Interest         
                       Equity       Equity        Commodity    rate             
                       division1    derivatives2  derivatives  market           
                       R'000        R'000         R'000        R'000            
For the period ended                                                            
30 June 2010                                                                    
External revenues        394 671      58 354        20 573       16 390         
For the period ended                                                            
30 June 2009                                                                    
External revenues        342 805      58 660        17 756       1 226          
For the period ended 31                                                         
December 2009                                                                   
External revenues        725 674      116 175       41 241       16 433         
Information about reportable segments (continued)                               
                       Information                                              
                        sales        Other        Total                         
                       R'000         R'000        R'000                         
For the period ended                                                            
30 June 2010                                                                    
External revenues        58 703        74 610       623 301                     
For the period ended                                                            
30 June 2009                                                                    
External revenues        55 133        68 935       544 515                     
For the period ended 31                                                         
December 2009                                                                   
External revenues        108 773       147 460     1 155 756                    
    1    Comprises equities trading fees, risk management, clearing and         
         settlement fees, membership fees, issuer services and technology       
         services (BDA).This amount includes approximately R7.0 million in      
         respect of interest rate issuer fees.                                  
    2    Includes approximately R5.0 million in respect of currency derivatives 
         which was included in the Interest rate market in the comparable       
         period in June 2009.                                                   
6. JSE LTIS 2010 Trust#                                                         
A new long term incentive scheme was approved by shareholders at the annual     
general meeting in April 2010. This new scheme ("LTIS 2010") replaces the       
previous long term schemes operated by the JSE, and accordingly, no further     
tranches will be awarded under these earlier schemes. Tranches already awarded  
under the previous schemes will run their normal course.                        
Scheme objective and design                                                     
The objective of LTIS 2010 is to incentivise and retain selected senior         
employees of the JSE over rolling three- and four-year time horizons. To this   
end, LTIS 2010 comprises a retention component and a performance component, with
the objectives, qualifying criteria and potential rewards applicable to each    
component being clearly distinguished.  In particular, the performance component
is intended to align the interests of scheme participants with the interests of 
JSE shareholders.                                                               
LTIS 2010 is a full-value, restricted share scheme which provides scheme        
participants with exposure to JSE shares, these shares having been acquired on  
an annual basis in the open market by a trust established by the JSE.  A scheme 
participant gets immediate beneficial ownership of the JSE shares from the date 
of the award, although this beneficial ownership is subject to restrictions; and
possible forfeiture where a participant leaves the employ of the JSE or the     
relevant JSE corporate performance metrics are not achieved.                    
First allocation under LTIS 2010                                                
Subsequent to receiving shareholder approval, the formalities relating to the   
establishment of LTIS 2010 and the associated Trust were completed, and the     
Human Resources Committee of the Board approved the first share allocation under
the rules of the scheme. Approval for the individual allocations and clearance  
to acquire the JSE shares was granted by the Board, and all individual          
allocations were accepted by scheme participants on or about 25 May 2010.       
The following assumptions, using Black-Scholes valuation methodology, were used 
to calculate the share based payment charge of R1,7 million (2009: Rnil).       
                                                Retention    Performance        
                                                shares       shares             
Base price (Rand per share)                      66.48        66.48             
Total number of shares granted                    327 400      155 500          
Dividend yield                                   3.00%        3.00%             
Vesting dates:                                                                  
50% of the shares awarded vesting on 1 May 2013   163 700      77 750           
50% of the shares awarded vesting on 1 May 2014   163 700      77 750           
Vesting of first allocation                                                     
All shares awarded under LTIS 2010 are held in trust and are restricted until   
all vesting conditions are fulfilled whereupon the shares vest. Should the      
vesting conditions not be fulfilled, the share awards are forfeited.            
The performance metrics applicable to the performance shares recognise the JSE's
long term institutional role and incentivise management to develop successful   
longer-term strategies that will contribute to sustainable growth in shareholder
value.  Members of the JSE's key executive personnel, have been granted 124 100 
retention shares and 155 500 performance shares.                                
7. Revenue#                                                                     
                               six months ended             year ended          
                               30 June                      31 December         
                               2010           2009          2009                
                               (reviewed)     (reviewed)    (audited)           
                               R'000          R'000         R'000               
Revenue                                                                         
Equity derivatives fees          53 336         53 732        106 700           
Commodity derivatives fees       20 573         17 756        41 241            
Equities trading fees            164 826        145 267       309 980           
Currency derivatives             5 018          4 928*        9 475             
Interest rate market             16 390         1 226         16 433            
Risk management, clearing and    92 895         76 187        163 663           
settlement fees                                                                 
Information sales                58 703         55 133        108 773           
Membership fees                  4 367          4 151         8 360             
Issuer services                  45 830         39 011        78 853            
Technology services (BDA)        86 753         78 189        164 818           
Funds management                 22 454         25 567        49 630            
Total revenue before Strate ad   571 145        501 147      1 057 926          
valorem fees                                                                    
Strate ad valorem fees           52 156         43 368        97 830            
Total revenue                    623 301        544 515      1 155 756          
*This amount was reported in the June 2009 interim results as part of the       
Interest rate market division.                                                  
8. Headline and diluted headline earnings per share#                            
                                 six months ended           year ended          
                                 30 June                    31 December         
                                  2010         2009          2009               
                                 (reviewed)   (reviewed)     (audited)          
                                  R'000        R'000         R'000              
Reconciliation of headline                                                      
earnings:                                                                       
Profit for the period              207 559      183 539       367 244           
attributable to Owners of the                                                   
Company                                                                         
Adjustments are made to the                                                     
following:                                                                      
Loss on sale of property and        15         -               107              
equipment                                                                       
Impairment of goodwill            -            -               158              
Impairment of monies due from     -            -               329              
related entities                                                                
Impairment of intangible assets   -            -              27 286            
Impairment of available-for-sale  -             2 113         2 113             
securities                                                                      
Remeasurement included in equity  -            -               200              
accounted earnings of associates                                                
Profit on realisation of          (9 229)      (1 655)       (9 087)            
available-for-sale instruments                                                  
Headline earnings                  198 345      183 997       388 350           
Headline earnings per share       233.3        216.1         456.1              
(cents)                                                                         
Diluted headline earnings per     229.7        213.0         449.6              
share (cents)                                                                   
9. Contingent liabilities and commitments#                                      
There were no changes to the contingent liabilities and commitments as reported 
in the consolidated financial statements as at and for the year ended 31        
December 2009, except as noted below.                                           
a) Commitments                                                                  
As a result of the JSE's acquisition of BESA, the Company assumed the           
obligations in respect of the lease of a building at Melrose Arch and accounts  
for the lease as an operating lease. The lease was renewed for a further five   
year period during 2007 and terminates on 30 June 2012. The premises are not    
fully occupied. The lease payments escalate at 10% per annum. Management views  
the lease contract as onerous as it expects the cost of meeting the obligations 
under the contract to exceed the associated expected economic benefits.         
Consequently, the present obligation of R4.0 million was recognised and         
accounted as a provision during the period.                                     
Review conclusion                                                               
KPMG Inc., the company's independent auditor, has reviewed the condensed        
consolidated interim financial statements contained in this interim report and  
has expressed an unmodified conclusion on the condensed consolidated interim    
financial statements. Their review report is available for inspection at the    
company's registered office.                                                    
The condensed consolidated financial results include the consolidated statement 
of financial position at 30 June 2010, the consolidated statement of            
comprehensive income and the condensed consolidated statements of changes in    
equity and cash flows for the six months then ended and selected explanatory    
notes. Selected explanatory notes are marked with a #.                          
A full version of this announcement can be found at www.jse.co.za               
JOHANNESBURG STOCK EXCHANGE                                                     
1 Exchange Square, 2 Gwen Lane, Sandown, South Africa                           
Private Bag X9991174, Sandton 2146, South Africa, Sandown                       
Tel +27 11 520 7000 Fax +27 11 520 8584                                         
Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)              
Date: 17/08/2010 12:30:04 Produced by the JSE SENS Department.