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Money Market Project

MONEY MARKET PRODUCT

Strate's Money Market Product enables the electronic settlement of money market securities. The System boasts a number of world firsts, which Strate has made available to international markets and counterparts. Notwithstanding the concomitant reduction in the security, settlement and operational risks and inefficiencies inherent in traditional paper based money markets, Issuers of money market securities enjoy real time secure access to a complete data base of the registered owners of its issued money market securities. Investors can manage their liquidity with greater confidence through secure real-time settlement of coupon and maturity payments and trades, on a gross principal-to-principal basis. A central SOR obviates the onerous controls over paper certificates and provides real time transactional audit trail of primary and secondary market trading. Some of the key features include, inter alia:
  • The facilitation of the real-time electronic issue of unique International Securities Identification Numbers (ISIN) for each money market Security issued;
  • A SOR which is the centralised real time record of ownership at beneficial level of every electronic security;
  • Post-trade electronic trade matching to eliminate settlement mismatches;
  • The facilitation of secure real-time gross settlement of trades on a principal-to principal basis;
  • The ability to calculate coupon payments and facilitate the settlement of both coupons and maturities;
  • Provide Simultaneous Final, Irrevocable Delivery-versus-Payment at beneficial ownership level for securities;
  • The opportunity for enhanced straight-through processing;
  • The reduction of operating risk through a single point of electronic capture of executed trades, settlement information and coupon and maturity payment amounts and dates as well as the opportunities for fraud and theft;
  • Comprehensive electronic real-time query and reporting facilities; and
  • Communication through standard ISO 15022 message types; communication with the System through integration of proprietary back office systems or via a stand-alone front-end portal.
The System was developed in conjunction with the South African money market and TCS. Over the last ten years, Strate has developed a strategic partnership with TCS to provide world class infrastructure to the financial markets industry in South Africa and one that can be customised to suit other markets around the world.