Strate secures South Africa’s first Trade Repository licence
Strate, South Africa’s central securities depository, has been granted a licence to operate as the country’s first Trade Repository (TR) by the Financial Sector Conduct Authority (FSCA), following concurrence from the Prudential Authority (PA). This landmark development marks a significant milestone in South Africa’s commitment to global financial market reforms.
The establishment of a licensed Trade Repository addresses one of South Africa’s outstanding G20 commitments aimed at reforming over-the-counter (OTC) derivatives markets and represents a crucial step forward in meeting international obligations.
“Strate is proud of the confidence that the Authorities have placed in us to establish this critical financial market infrastructure. We look forward to partnering with the Authorities and our ODP partners to establish a world-class Trade Repository that propels South Africa forward by aligning to global best practice from the outset,” says André Nortjé, CEO of Strate. “This will enable data-driven decision making and support significant market initiatives like the transition to ZARONIA, while meeting our G20 commitments.”
The Trade Repository will serve as a centralised registry for OTC derivatives contracts, improving market transparency and providing regulators with vital data-led insights for more effective policy-making. This new capability will be particularly significant in supporting South Africa’s transition from JIBAR to ZARONIA, as it will enable the collection of essential market data needed to develop credible forward-looking term reference rates.
As a trusted and neutral market infrastructure provider, Strate brings extensive experience in registry services and data management to this new role. Strate already manages critical market data across various segments, including monthly insights on secured interbank transactions and Money Market Publishing Agent services.
Beyond regulatory compliance, Strate’s Trade Repository aims to deliver additional value to market participants through optional value-added services, while maintaining its core function as a regulatory utility.
The implementation of the Trade Repository represents a significant advancement in South Africa’s financial market infrastructure, supporting risk reduction through enhanced transparency and oversight of the OTC derivatives landscape. This development aligns with global best practices in financial market regulation and oversight.
For more information about Strate’s Trade Repository services, market participants are encouraged to contact Farzana Khan (farzanak@strate.co.za).
