The Johannesburg Stock Exchange (JSE) is collaborating with Amazon Web Services (AWS) to modernise its technology, leverage edge computing infrastructure, explore AI to deliver innovative market solutions and drive operational efficiencies.

The move will also improve the delivery of real-time market data in the cloud and drive industry innovation leveraging artificial intelligence (AI), machine learning (ML), generative AI (GenAI) and blockchain technologies.

The transformative journey will focus on market infrastructure and the enablement of evolutionary trading enablement technologies for seamless connectivity with clients.

The JSE will start by embarking on upgrading its Broker Dealer Administration (BDA) system, a critical application used by the JSE to manage risk and ensure the seamless functioning of equity markets. The demands of modern, always-on, capital markets require the BDA system to be modernised from its legacy mainframe environment in order to meet the needs of broker dealers whilst maintaining The JSE’s status as a world class exchange.

Leila Fourie, group CEO of the JSE, says: “We continue to remain steadfast in our focus on how we create an enabling environment for market participants. The JSE’s collaboration with AWS marks a new era in financial services, where technology and innovation drive progress. Together, we are not just modernising infrastructure; we are setting new standards for the industry, ensuring that our markets are more inclusive, efficient, and prepared for the future.”

Tanuja Randery, MD of AWS EMEA, comments: “AWS has deep expertise in meeting the unique needs of capital markets participants around the world, and we are excited about the opportunity to work with the JSE.

“The JSE’s commitment to drive efficiencies and an inclusive cloud-based marketplace has the potential to transform the way capital markets operate in South Africa. We are proud to play a foundational role in helping the JSE expand investment opportunities, foster diversification and manage risk, leveraging the latest AWS innovations in edge computing and generative AI.”

JSE CIO Tebalo Tsoaeli adds: “This landmark strategic partnership with AWS will enable The JSE to provide new and innovative ways of delivering the best outcomes for the capital markets ecosystem. With innovation at the heart of what we do, the strategic partnership will further embed The JSE as a centre of innovation for Capital Markets on the continent.”

The BDA modernisation promises to significantly enhance operational efficiency, reduce running costs, technical debt and increase the agility of The JSE in responding to the demands of its capital market broker community.

The BDA system supports a large broker dealer community and the modernisation from a legacy mainframe application will enable these customers to enjoy a richer user experience, improved analytics, and leverage a secure, modern architecture for a more flexible integration with the JSE.

The collaboration will explore additional areas for future value extraction. These areas include improving the delivery of real-time market data in the cloud and the delivery of cloud proximity offerings by utilising AWS’s global infrastructure and ultra-low latency edge computing services.

Future collaborations will be centered around harnessing the power of AWS’s broad portfolio of analytics and AI services. The JSE will also gain access to AWS Generative AI capabilities, through Amazon Bedrock, a managed service that offers a choice of foundation models from AI companies and Amazon via a single API.