Strate expands offering to OTC derivatives market

Strate expands offering to OTC derivatives market

As South Africa’s trusted and principal central securities depository and central collateral platform, we are pleased to announce we have reached a significant milestone in expanding our offering to the OTC derivatives market.

We have gone live with our solution to provide a digital post-trade confirmation matching process for over-the-counter (OTC)  derivatives – the first new security type to be added to our platforms in over a decade.

We are now ready to offer registry, settlement, asset servicing and data services to the OTC derivatives industry, through our existing platforms, to efficiently and cost-effectively connect local buy-side and sell-side market players.

The current OTC derivatives market processes are inefficient, fragmented and largely manual, which leads to delays and errors. The local industry is faced with the challenge of new margining regulations that come into effect in February 2023, further driving the need for digital solutions. Digitisation in the OTC derivative markets will enable the connection of all key players – sell-side, buy-side, administrators and regulators – digitally, robustly and with the right level of security.

The benefits of introducing OTC derivatives into our digital financial market infrastructure include:

  • Standardisation
  • Interoperability
  • Efficiency
  • Risk mitigation
  • Lower cost of trading

Our cost-effective solution for OTC derivatives is supported by FpML global standards (high-quality data at source) to enable the value chain to operate effectively and efficiently. This includes providing valid, accurate and complete information which can be used to support market transparency.

Please do not hesitate to contact Strate to discuss how we can partner with you to support your business. 

Strate’s e‐Voting platform welcomes Legacy Africa Fund Managers

Strate’s e‐Voting platform welcomes Legacy Africa Fund Managers

We are delighted to announce that Strate’s e‐Voting platform has reached another significant milestone: the operationalisation of Legacy Africa Fund Managers to process its voting instructions. This aligns to our purpose of serving the South African financial markets through collaborating with the market to enable efficiencies in shareholder voting.

We would like to thank Nedbank, Rand Merchant Bank and Standard Bank for the vital and ongoing collaborative role they have played in driving the successful operationalisation of their client.

We look forward to enabling Legacy onto our platform.

Godwin Sepeng, Managing Director, Legacy Africa Fund Managers, says: “Legacy Africa Fund Managers would like to thank Strate and our CSD partners for facilitating our seamless migration onto the e-Voting platform. We are delighted at the prospect of a new relationship with Strate, while we remain grateful to our CSD partners for the voting service they previously provided.

“Among the many advantages of migrating to a streamlined, end-to-end online platform is that it will enable us to improve our corporate governance responsibilities to clients (as mandated by our proxy voting guidelines and ESG policy), as well as equip us to report, maintain records and have oversight of our proxies in a more granular fashion.”

Strate e-Voting is a revolutionary, secure, web-based application used to manage shareholder meetings for South African and foreign-listed issuers. The platform provides a fully digitised experience that seamlessly connects issuers and investors, increasing transparency and efficiencies across the value chain.

Other benefits include:

  • Real-time voting from any location
  • Ability for voters to change their vote at any time before meeting close
  • Ability for voters to direct questions to the meeting chairperson
  • No manual intervention at any stage in the value chain
  • Improved corporate governance through interactive, audited reports
  • Data security using blockchain technology
  • A true end-to-end solution

To find out more about Strate’s e-Voting platform, please email e-Votingteam@strate.co.za.