Strate appointed by SARB to publish JIBAR post-trade disclosures

Strate appointed by SARB to publish JIBAR post-trade disclosures

As South Africa’s principal central securities depository (CSD) and financial market infrastructure, Strate has been appointed by the South African Reserve Bank (SARB) as the publishing agent for the Johannesburg Interbank Average Rate (JIBAR) post-trade disclosures, an initiative that will contribute to the enhancement of the credibility and integrity of JIBAR.

The effort to enhance the credibility of JIBAR is part of the SARB’s broader plan to strengthen the critically important reference rate in the interim and secure a transition period while an alternative near risk-free reference rate is being developed.

For South African financial market participants and foreign and local investors alike, the post-trade disclosures will bring an enhanced level of transparency about primary and secondary market transactions related to JIBAR, helping to boost confidence in the rate and in South Africa’s standing as a well-regulated and efficient market.

Strate’s pivotal role in the domestic dematerialised money markets through the provision of trade settlement and custodial services, places it in a unique position to be able to provide post-trade disclosures for JIBAR.

It follows a global trend of regulators reviewing the lack of transparency in how interbank offered rates (IBORs) are determined and a move to alternative reference rates.

“Strate’s purpose is to serve the financial markets and we are pleased to be able to do this by publishing this data on our website and Data Services platform for use by financial market participants and investors,” says André Nortjé, Chief Executive Officer, Strate.

“Financial market participants and investors will gain access to rich data on volumes and averages in the South African market, such as the volume weighted average rate of all trade concluded the previous day, the rate occurring at the 10th, 25th, 75th and 90th percentiles of volume and the aggregate volume of all trades concluded the previous day,” says Gregory Naicker, Head: CSD Services at Strate.

Further benefits include providing the market with insight into primary, secondary and buy-back transactions, assisting banks in assessing their re-financing risk, especially during stressful periods or extraordinary events, using the outstanding nominal value of assets and giving foreign investors access to money market data, which could further encourage foreign investment into the country and improve confidence in the operational integrity of South Africa’s financial markets.

Click here to view the Money Market Publishing Agent Report.

Gregory Naicker, Head of CSD Services at Strate, shares his career insights

Gregory Naicker, Head of CSD Services at Strate, shares his career insights

How did you find yourself on this career path?

I have always been fascinated by banking. I was fortunate to start my career at Standard Bank and I immediately found a passion in corporate and investment banking. I joined the CIB division when the South African market was migrating investors from a certificated to uncertificated environment. This was the catalyst for my passion in the financial market

What and who inspires you?

I believe that all human beings should have the right to savings and the right to be able to be financially ‘free’. This belief system drives me in what I do. I am inspired by people that are motivated and driven by a similar belief system to me, such as our former president Nelson Mandela.

What advice would you give to anyone starting out their careers?

Understand what the meaning of success is to you. Choose a career that you want to wake up for every day – not one that you have t

What has been the most valuable skills you have ever learned? And how has this helped your career?

Listening – the ability to listen has enabled me to create value for clients in the environment that we operate.

Outward mindset – the ability to really understand what clients want and what impact I have – positive or negative – gives me the ability to provide solutions to problems in a manner that is a ‘win-win’ for everyone