2007 was the JSE's best year ever: revenue increased by 37%, cash from operations was up 70%, and earnings increased by a whopping 94%. The JSE accredits its success to diversified revenue streams, mitigating risk across markets (see graphic).

JSE CEO Russell Loubser said the JSE's performance was "in spite of financial markets taking a hammering both locally and internationally, and once again reinforces the fact that the JSE as a company stands to gain as long as trade continues". The all share index benefited from global market turbulence and hit a record high of 31 531 in October 2007.

Some of the new main board listings were noteworthy. IT giant Blue Label Telecoms was the biggest listing. The private placement was at R6,75 and the share price reached R8 on the day of the listing. It was also oversubscribed. It broke new barriers as the listing achieved a market capitalisation of R6,5bn.

But some of the exits were also significant, particularly for those companies involved in private equity buy-outs: Edcon, Consol, Peermont, Unitrans and Alexander Forbes. Loubser says: "Private equity delistings are a fact of life, and contrary to popular belief, we do not object to them. If it is best for the company and its shareholders, then that is what must happen." Overall, "the private equity related delistings have not had a noticeable effect on the exchange, as lots of new companies have also come on", he says.

And the quality of new listings has improved dramatically. "As an exchange we made mistakes in the 1990s with the quality of some of those companies," says Loubser. "We really took a beating as an exchange. And we recognised, admitted and paid for those mistakes and we won't go back."

Other milestones included the JSE's single stock futures (SSF) market becoming the biggest in the world by contracts traded, and the growing popularity of its currency futures. Loubser attributes the success of the SSFs to "very good relationships between the derivative team and the market."

One of the JSE's strong points in recent years has been its innovation. In 2007 two new indices were launched, the Rafi (Research Affiliates Fundamental Index) and International Benchmark Indices.

A new tradable instrument was also introduced to AltX, allowing traders exposure to its companies by trading futures and options on the index.

Liquidity for the first quarter of 2008 was up 51%, five new companies have already listed and currency futures will be buoyed by the 2008 budget, which also allows corporate entities to trade in them.

But the JSE also has some work to do. Brokers and traders have complained that its IT systems are wanting. A favourite bugbear is its Stock Exchange News Service (Sens), which is constrained by the data it can accept. For example, companies say they cannot upload graphs, and dual-listed companies can disseminate information more quickly from abroad. Financial statements are also cumbersome on some operating systems.

But the JSE says that Sens, as a market information system that ensures all players have simultaneous access to price-sensitive information, does exactly what is needed.

The JSE also needs to attend to the settlements rate. Settlements are currently on a T+5 (trade plus five days) basis. But it is not entirely the bourse's fault. Its systems are ready to move to T+3, but the market would also have to be ready for it.

The JSE did introduce a new trading platform, which is the same system as that used by the London Stock Exchange. Though the previous system was world-class, Loubser says the new system is even better and 10 times faster.

Another issue that came up for debate was the exchange's role regarding the behaviour of company directors. This was highlighted when last year's blue-eyed boys of the exchange, Blue Label, came under pressure as media attention turned to undisclosed director's dealings. Loubser says: "I am sure they regret that kind of thing. They have also said so in the media. All the profits from those transactions will be donated to charity."

It cannot be said the JSE has done nothing to contribute to corporate governance. There is a compulsory four-day course for AltX directors. Loubser says: "Without exception, these guys will say thank goodness we went on it, whereas previously they thought they did not have the time." He thinks it would be a good idea if all main board directors went on the programme.