Strate has been approved to issue Legal Entity Identifiers

South African legal entities who have to comply with European regulations to execute a transaction with European counterparts can now apply to Strate for their Legal Entity Identifier (LEI), which is being used by regulators to provide greater transparency into financial markets and counter party exposures.

 

From June 2018, firms subject to MiFID II transaction reporting obligations will not be able to execute a trade on behalf of a client who does not have a valid LEI. This is just one of a number of European regulations and directives where an LEI is required, with the next phase of European Markets Infrastructure Regulation (EMIR) on margin requirements for non-centrally cleared OTC derivatives to follow.

 

On 31 May 2018, the Global LEI Foundation (GLEIF) approved Strate as a fully accredited issuer of LEIs, known as a Local Operating Unit (LOU). LOUs are the utilities endorsed by the Regulatory Oversight Committee (ROC), or accredited by the GLEIF under ROC oversight, to provide LEI registrations to registrants and other services. Strate has been issuing LEI since 2014 in its role as an endorsed pre-LOU, and to date, has issued over 350 LEIs.

 

For more information, visit https://www.lei-strate.co.za/.

 

 

 

Strate unwraps its new website

Strate is proud to announce that its new website is live, where current and prospective clients will find useful information about our services in a fresh and fluid design that can be viewed on both desktop and mobile versions.

 

Leigh Bevis, Head of Marketing and Business Development explains, “The digital marketing landscape has changed significantly and people want to interact with content. Strate’s new website is far more visual, which means it’s easier for many users to remember. When customers remember your visual site, which incorporates videos and infographics as content, they also remember your brand and you as a company.”

 

People visiting Strate’s website will now find that information is much easier to digest in its repackaged form and key products and services have been given prominence as visual blocks on the landing page. “There is movement in some of the diagrams, animations and infographics and the videos provide informative news or views on industry trends, our market or Strate’s services,” Bevis adds.

 

Given that some content has been shortened, or removed, email addresses have been provided for clients to request the information from the correct people within Strate. Should you wish to access Strate’s Directives, Special Gazettes, or Guidance Practice Notes, then you need to email Strate-Directives@strate.co.za  to request a copy of the document that you would like to access. (If you have registered for the Strate Exams and require a copy of the Directives as part of your study material, please request this directly from the Strate Academy via academy@strate.co.za)

 

To visit the new site, go to www.strate.co.za.

 

 

 

 

 

 

4AX goes live with two issuers using Strate’s settlement services

Strate welcomes the news that its client – one of South Africa’s newest exchanges, 4 Africa Exchange (4AX) – announced its first two issuer listings on the Exchange – NWK Limited and NWK Holdings Limited.

 

NWK used to trade shares in the over-the-counter market. However, changes to financial market legislation and regulations meant that companies like NWK had to trade these shares on a formal market.

 

The changes to regulation was one of the reasons that led to the creation of 4AX, which intends to provide a formal trading platform for the over-the-counter equities market. The company has indicated that it would broaden this to medium-sized enterprises, real estate investment trusts, restricted schemes and special purpose vehicles given that its licence allows it to serve multiple asset classes.

 

At the beginning of September 2016, the Financial Services Board notified the market that it had granted 4AX an exchange licence. Strate was appointed by 4AX to provide it with central securities depository and settlement services. 4AX offers investors a T+3 settlement cycle, allowing trades matched on its system to be cleared and settled within three business days after the trade date.

 

Gregory Naicker, the General Manger Product Development at Strate, says, “Strate welcomes the news of 4AX’s inaugural listings and we would like to commend 4AX on their historic milestone.”

 

According to news sources, 4AX is targeting nine more companies across the construction, engineering, hospitality, property development and tourism, two of which are expected to be inward listings.

 

Below are images of Greg Naicker with the 4AX executive team, as well as the NWK executive teams:

 

 

Strate partners with A2X Markets for Collateral and Settlement Services

On Friday 13 October, 2017, the first non-cash collateral exposure between A2X Markets and one of its brokers was successfully reported and settled using Strate’s Tri-Party Collateral Management Services. This came just over a week after A2X Markets had announced it was operational and  settling transactions on a T+3 settlement cycle using Strate’s settlement infrastructure.

 

Instead of placing cash to cover the capital exposure requirement (where cash is typically required to cover market and settlement risk), Strate’s collateral solution also enables broker’s to place securities as collateral for their exposure risk on A2X. This frees up cash for the broker, allowing brokers to more efficiently use cash to fund other transactions.

 

“A2X is excited with the prospects that Strate’s Collateral Management System adds to the market in reducing the risk between trade date and settlement date. Strate’s Collateral Management System brings about high levels of automation and the calling of collateral is seamless to the users,” says Brett Kotze, Head Post-Trade Services at A2X Markets.

 

Beverley Furman, the Managing Executive of CSD Operations at Strate, adds: “The capital markets are evolving and Strate has been nimble in developing premier solutions that cater for such dynamic players. A2X has an innovative business model that further decreases risk and capital costs for brokers, which ties into Strate’s philosophy of creating solutions that are efficient, reduce risk and add value to stakeholders. We are proud to be partnering with A2X Markets and its clients for both settlement and collateral solutions.”

 

Financial services companies, African Rainbow Capital Investments (AIL), Peregrine Holdings (PGR) and Coronation Fund Managers (CML) are the first counters to have a secondary listing on A2X Markets. It has approved RMB Morgan Stanley, Peregrine Securities, Investec Securities and Avior Capital Markets as its stockbrokers, with more brokerages expected to be approved in coming weeks.

 

A2X Markets was officially granted its licence by the Financial Services Board in April 2017, then becoming the country’s fourth licensed South African exchange and Strate’s newest client. It is targeting many of the largest companies currently listed on the JSE, to secondary list on A2X Markets. It says it is also offering brokers material discounts to transact in these shares, while maintaining the high standard of regulation as set by the Financial Market Act.

 

 

You can now watch videos from the 2017 Strate GIBS Fintech Innovation Conference Online

To provide you with a holistic understanding of the impact emerging FinTechs will have on the future of financial services, GIBS partnered with Strate to host the Fintech Innovation Conference during August 2017.

 

The videos for the following topics are now available online:

 

 

Please click on the respective topics to access the video directly, or visit Strate’s YouTube channel to watch our videos online.

 

 

 

 

Go-Live Date for Strate’s Debt Instrument Solution Project announced

South African Central Securities Depository (CSD), Strate, has confirmed that all the milestones necessary to proceed with its Debt Instrument Solution (DIS) Project have been met. This landmark has been achieved through an extended period of commitment and testing involving all market stakeholders.

 

Strate is, therefore, pleased to announce that 22-26 September 2017 has been set aside for the formal implementation of the new system – with Tuesday 26 September 2017 being earmarked as the first day of operation using the new DIS platform.

 

We thank you for your support and look forward to your continued focus and dedication to achieving this successful transformation for the South African capital markets.

 

 

 

Strate CEO, Monica Singer, stepping down to pursue new opportunities

Strate would like to announce that its CEO, Monica Singer, will be leaving Strate at the end of August 2017 to fulfil her dream of living in Cape Town and to pursue new opportunities.

 

After being at Strate for almost two decades, and being its project manager since inception, Monica has been committed to the success of Strate. During her tenure, she was responsible for the introduction of electronic settlement for the South African financial markets and ensured that Strate became globally recognized as being one of the most progressive Central Securities Depositories.

 

Monica’s entrepreneurial spirit, together with her visionary leadership, has established an organization that embraces being a Conscious Company that creates shared value for all stakeholders.

 

“I have always had a passion for innovation and technology that drives societal change. With the potential disruption that the financial markets may face, particularly with disruptive technologies like blockchain, I will continue to research to stay ahead of developments which may lead me to consulting on these topics,” says Monica.

 

As the Vice President of the Africa & Middle East Depositories Association (AMEDA) together with her role in the World Forum of CSDs (WFC), Americas’ Central Securities Depositories Association (ACSDA) and her contribution in the last 18 years to the International Securities Services Association (ISSA), she created a network that will continue to share ideas at an international level.

 

Strate’s strategic objectives will continue to be executed by its long-standing executive team, along with Dr. Maria Vermaas who has been appointed as Strate’s Interim CEO. Dr. Vermaas has been at Strate as its Head of the Legal and Regulatory Division since the beginning.

 

“The Board, together with the Executive team and staff, would like to thank Monica for her contribution to Strate and the legacy that she has left behind. We would like to wish her all the best for her future endeavours,” says Strate Chairman Rob Barrow.

 

For further queries, please contact Leigh Bevis, Strate’s Head of Marketing and Business Development, via leighb@strate.co.za, or via +27(0)11 759 5466.