The Financial Services Board (FSB) is looking into the JSE’s publication of incorrect trading data.
The body said in a press statement issued on Friday, that “it is looking into the circumstances of the lead up and causes of the error, and will be taking appropriate steps in this regard…It is important that the reliability of information released to the public by a market infrastructure, in this case an exchange, is assured and maintained. The error has raised concerns in the market and amongst fellow regulators.”
This is follows the JSE’s acknowledgement on Sunday that a computer glitch caused its reporting on the inflows of foreign money into South African equities to be completely incorrect. The JSE initially reported that R100 billion of foreign investment flowed into the JSE between May 31 and July 20. Following the discovery of the error it became apparent that foreigners were the net sellers of R35 billion.
Earlier this week JSE CEO Nicky Newton-King said the JSE has also initiated an investigation into the glitch, as well as why it took nearly eight weeks to surface.
Bert Chanetsa, deputy executive officer for investment institutions at the FSB, told Moneyweb that it is not a formal investigation. “At this stage, with the information we have, there is no cause for concern. There is no cause for alarm.”
He said some concern was expressed after news of the glitch broke. “Markets need assurance and therefore we as the regulator will look into the matter.”
Chanetsa added that it “could” become a formal investigation, but it is not deemed necessary at this stage.