Strate extends its services to a new exchange as ZAR X goes live

Click here to view Strate’s video on ZAR X

Strate, a South African Central Securities Depository (CSD), has welcomed the official go-live of South Africa’s newest bourse, ZAR X, after successfully integrating the exchange into Strate’s clearing and settlement platforms.

 

At the beginning of September 2016, the Financial Services Board notified the market that it had granted ZAR X an exchange licence. Strate was appointed by ZAR X to provide it with central depository services since the bourse’s inception early in 2015, where the CSD prepared to integrate the different requirements for ZAR X to create a bespoke settlement solution.

 

Preparatory work between Strate and ZAR X has taken place to implement a unique settlement cycle, which showcases the flexibility of Strate’s equities clearing and settlement technology to settle on any cycle that an exchange requires.

 

According to Beverley Furman who is the Managing Executive of CSD Operations, a division of Strate, Strate’s clearing and settlement technology already caters for multiple settlement cycles, from same day settlement (T+0), to three business days thereafter (T+3), or any requirement in fact (T+n). “When we were appointed by ZAR X as their Central Securities Depository, we understood that they wanted their equities settlement cycle to be on a T+0 basis and required a bespoke solution that would cater directly for their market. Given their shorter settlement cycle requirements, we developed solutions to address their unique corporate actions process and payments methodology, their closed account structure, as well as their pre-funded model.”

 

Etienne Nel, CEO of ZAR X, adds: “This is a historical milestone for the South African market and we couldn’t have achieved this without our service providers.

Strate’s Beverley Furman (Left) and Gregory Naicker (Right) with ZAR X CEO Etienne Nel (Centre)

Strate’s born on the premise that it aims to deliver solutions that mitigate risk in the financial markets. A real-time settlement cycle achieves just that, as it ensures there’s no settlement risk to the investor, a win-win for both ZAR X and Strate.”

 

Furman concludes that Strate is open for business.  “Strate has continued to be a trusted and independent party in the market, which is evident by us offering CSD services to new stock exchanges. Our equities settlement technology is robust and flexible and can cater for a number of evolving client needs and we can only look forward to working with our current and new clients in the years ahead.”

 

 

 

 

Click here to view related video.

 

 

 

Strate’s Debt Instrument Solution

During Septrember 2017, Strate revamped our bond clearing and settlement system with new advanced technology to take the entire market forward using global best practice and standards.

This page includes various educational material and news updates on the project.

 

 

Fee Schedule

Bonds Depository and Settlement Fee Schedule

Bonds Participation Fee Schedule

Bonds Issuer Fee Schedule

 

Market Newsflashes

DIS Market Flash

 

Educational Guides

DIS Issuer Guide

DIS settlement timelines

DIS Operational Timelines Guide (an enhanced guide to the Settlement Timelines Guide)

DIS Account Structures Guide for foreign clients_

DIS Account Structures Guide for local clients_

DIS guide centralised messaging front-end – benefits and costs

DIS Settlements and Capital Events Process Guide

 

Presentations

Operational Timelines

 

 

 

Contact

For further information, email DIScommunications@strate.co.za.

‘Liquidity Alliance’ builds blockchain solution for cross-border collateral transfer

Four members of the ‘Liquidity Alliance’ (LA), an international group of central securities depositories (CSDs), are cooperating with Deutsche Börse to launch an initiative leveraging blockchain technology to ease cross-border mobilisation of security collateral. With the planned solution, The Canadian Depository for Securities Limited (CDS), Clearstream (Luxembourg), Strate (South Africa) and VPS (Norway) want to overcome existing hurdles when moving collateral across various jurisdictions, making the transfer faster and more efficient.

Following the financial crisis, regulators increasingly require market participants to provide collateral to mitigate risks in the financial system. The Dodd-Frank Act in the U.S. and EMIR in the EU are two important frameworks in this regulatory overhaul leading to a growing demand for high-quality collateral to which access is limited. CSDs are already supporting the market today with real-time collateral management to ensure that exposures can be covered sufficiently and that local collateral can be quickly transferred where it is needed.

Being jointly provided by regulated market infrastructures, the Distributed Ledger Technology (DLT) based ‘LA Ledger’ prototype will enable a centralised, faster and more efficient allocation of fragmented security positions to cover financial obligations of market participants in multiple jurisdictions. The decentralized character of DLT (blockchain) allows for direct interaction between participants giving it the potential to simplify complex processes.

The ‘LA Ledger’ will initially be implemented as a prototype based on the Hyperledger Fabric blockchain. Validation by regulatory authorities and market participants will start in the second quarter of 2017.

“With this initiative, we pursue an innovative partnership approach that will allow us to jointly embark on distributed ledger technology with a use-case that is highly relevant to the wider industry”, said Glenn Goucher, President and Chief Clearing Officer, CDS.

“LA Ledger is designed to simplify cross-border collateralisation away from using multiple complex and non-standardised links towards smooth movement across various jurisdictions”, added John-Arne Haugerud, CEO VPS.

“We look forward to engaging with regulators and market participants to validate the proposed solution”, added Monica Singer, CEO Strate. “We are convinced that integrating this new technology into a permissioned environment of neutral regulated entities is the right way forward.”

“We are proud to be part of this exciting LA Ledger initiative which is adding another leading edge solution to our award-winning suit of collateral management services to the benefit of our mutual clients”, commented Philippe Seyll, Co-CEO Clearstream Banking S.A. at Deutsche Börse Group

 

 

Partnerships – Strate /UJ and Strate/Maharishi

South Africa is facing a major challenge of one the highest youth unemployment rates in the world. The Financial Markets industry is ageing and the struggle for good quality skills is a constant battle among many organisations.

 

Strate has identified three separate, but complimentary projects, which will provide a sustainable pipeline of skills. The partners identified for each project were chosen based on their experience, willingness to partner with industry and passion for development of youth skills in South Africa.

 

The interconnectedness between the projects is vital to ensure that there is continuity of learning between each project. This interconnectedness is depicted below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Farewell to Strate’s former Chairman, Bobby Johnston

On 1 December 2016, Strate held a farewell in honour of Bobby Johnston. Johnston was Strate’s Chairman from January 2011 to October 2016, and played a key role in the development of Strate 20 years ago.

 

Monica started as the Project Manager of Strate in October 1996, where she met Johnston in his role as the then Chairman of the JSE. He mentored Monica since then and has been influential in making Strate the successful company that it is today.

 

Here are some pictures of Johnston’s farewell:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strate: A Pioneer of Exchange-of-Value Settlement Solutions

All too often, good infrastructure goes unnoticed. This is probably one of the reasons why few South Africans know and understand the country’s Central Securities Depository, Strate, however, without it, investors would shy away from South Africa.
Prior to the implementation of Strate in 1999, SA was categorised as one of the worst emerging markets in terms of operational and settlement risk. Trading volumes on the stock exchange were averaging 4,000 trades daily, very thin when this is compared to the 350 000 on average during a month today.

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Strate Charity Shares’ Donations Surpass R6m Mark

Strate Charity Shares (SCS) is registered as a non-profit organisation and charity donation programme that was created almost 15 years ago to address the long-standing problem of investors holding small amounts of unwanted shares. Since 2002, SCS has paid more than R6 million to charities dedicated to helping children.  It hands donations to charities across South Africa that are dedicated to feeding, raising and educating children.

 

Investors who want to dispose of these unwanted shares to neaten up their portfolios have previously been deterred by the cost of selling them. As a result, thousands of rands are tied up in assets that cost more to sell than they are worth, and portfolios are left in an untidy state.

 

Donate Equities and Bonds

A solution is for clients to donate their shares to charity by contacting SCS, either directly, or through their broker. Given the success of share donations, SCS will be enabling investors to include bond donations as well. Investors will be able to dispose of bonds as securities to neaten up their portfolios, as well as receive a tax benefit for doing so. In terms of Section 18(A) of the Income Tax Act, when investors donate their shares to SCS, they are issued a receipt that can be claimed against their taxation liability.

 

The people and companies involved in SCS all give their time and labour free of charge. Charities that have historically been the recipients of these donations are the African Children Feeding Scheme; Bethany House Trust; Child Welfare Tshwane; Cotlands; Guild Cottage; Nazareth House; Salesian Life Choices; Topsy Foundation and Zisize Educational Trust.

 

For more information regarding SCS, visit https://www.strate.co.za/people-culture-community/strate-charity-shares.

 

If you wish to donate your equities and bonds to SCS, please call the toll-free helpline on 0800 202 363, or +27 (0)11 870 8207 if you are phoning outside South Africa. Alternatively, you can email charityshares@computershare.co.za.

The Steps to Employee Wellness

It may be one small step for man, or employee, but it’s a giant leap for employee wellness. South African central securities depository, Strate, has incorporated a “work while you walk” approach to its daily routine. Not only has the company purchased two In-Movement Treadmill desks, more employees are incorporating standing and walking into their daily work routines, and have opted to replace their office chairs with stability balls, which are known for the related improved health, posture and strength.

 

Strate CEO, Monica Singer, using her InMovement Treadmill Desk

The Central Securities Depository already has a number of initiatives underway, which range from its corporate wellness day to financial fitness workshops. But since its CEO, Monica Singer, discovered the innovative ergonomic treadmill, she personally bought one for herself. She instantly felt energized because her serotonin levels were up at work, she was relieving stress and meeting her daily Discovery Vitality fitness goals. She wanted staff to have the same experience, which is why she invested in another machine to be used by staff as well and has promoted the use of standing desks.

 

“We live in the age of technology, whether it’s owning a smart phone that allows you to monitor your health, or a smart watch that tracks your eating and sleeping habits, or apps that combine that data to help you achieve your fitness goals. Many people have to exercise after work to achieve their desired fitness, but this In-Movement Treadmill allows them to work out and work on their computer at the same time,” explains Singer.  “It’s also about more than just ensuring that employees are well enough to be at work, it’s about employees’ physical and mental health, their social, financial and spiritual wellbeing.”

 

One cannot address wellness and ignore the importance of physical activity. It is vital that employees are encouraged to be physically active. This may be through an office gym, something not all businesses can afford, or through an office sports team – which increases the solidarity between employees. Strate already sponsors its corporate soccer and cricket teams, as well as cycling and running initiatives for employees.

 

According to Statistics South Africa, absenteeism costs the country’s economy between R12bn and R16bn each year. These statistics also show that on any given day, over 15% of staff could be absent. They also believe that two out of three employees who fail to show up at the office are not physically ill – but are rather battling to cope or are unhappy at work. Absenteeism is possibly the single most expensive problem affecting organisations locally and internationally, so it’s worth investing in a solution that works, and which is one that fits the culture of your work environment.

 

From work-life balance, to providing employees with an annual training budget to better improve their knowledge and skills, Strate aims to be an employer of choice.

 

Singer ensures that Strate takes their employees’ wellness seriously through annual work with ICAS (Independent Counselling and Advisory Services), a health and wellbeing service that provides them with access to a 24-hour, 365 day-per-year toll-free helpline for counselling and consultation, and other services.

 

Strate regularly hosts financial wellness workshops for its employees to educate employees to better manage their finances and reduce some of the stress caused by their financial burdens. A recent PwC survey found that personal finance issues distract 20% of employees at work. “These workshops make a huge difference in terms of ensuring that employees aren’t distracted and have the necessary tools at their disposal to obtain and maintain their financial wellness”, says Singer.

 

The new Fractal Division at Strate, sporting standing desks and stability balls

One thing that many companies overlook when thinking about employee wellness is the beauty of the environment in which employees work. “Aesthetics are important too, because you want to create a welcoming environment that employees look forward to going to every morning. This can be done through natural light, the display of colourful artwork, or having fresh flowers around various areas of the office”, says Singer.

 

“Employers must move beyond health assessment to-do lists to a culture-driven and relationship building approach in order to ensure everyone who works at their organisation is healthy and able to reach their full potential in their career”, concludes Singer.

 

 

Infographic: Strate Fast facts

From a Thomas Murray AA- rating, to Strate being ranked among the top Central Securities Depositories globally, click here to view an infographic that tells you all the fast facts that you need to know about Strate.

 

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