Euroclear and Strate collaboration delivers automated movement of dual-listed securities in South Africa

Euroclear Bank and Strate, South Africa’s principal central securities depository (CSD), have successfully implemented a capability for dual-listed equities that provides value to both issuers and investors. Recognised locally and internationally as an important financial market infrastructure (FMI), Strate has been a key component of the South African financial market ecosystem for over 25 years, responsible for delivering services critical to the smooth functioning of the capital markets.

The establishment of a direct link between the two CSDs enables the seamless movement between South Africa and other jurisdictions of equities with a dual listing on a South African exchange, thereby allowing investors to trade these securities on any applicable exchange.  A straight-through process across the value chain removes manual processes, resulting in significant improvement in settlement timelines for removals.

Through this partnership, South Africa aligns to the global standard for the movement of securities between jurisdictions.

“We are extremely proud that Strate has facilitated a strong partnership with Euroclear to deliver business solutions that benefit the South African capital markets. In aligning to global standards, the partnership promotes greater market efficiencies and a globally competitive local market to drive risk reduction and investor protection. This capability creates an opportunity for greater collaboration to grow the South African capital markets,” says André Nortjé, CEO of Strate.

“We are excited to have reached this significant milestone for the South African market in partnership with Strate. Through our collaboration, we are driving innovation and delivering cutting-edge solutions that will enhance market efficiency. Together, we are creating new opportunities and added value for our clients and the broader industry,” says Bernard Ferran, Chief Commercial Officer of the Euroclear Group.

To find out more about this dual-listed capability, please contact: CSD-Services@strate.co.za.