“Asset safety is increasingly becoming an important criterion for both local and foreign investors. Following the collapse of Lehman Brothers and MF Global, the focus on reducing the risks associated with holding securities has grown substantially. SDAs significantly and conveniently enhance the segregation and portability of investors’ securities,” explains Monica Singer, the CEO of Strate.
Euroclear – The premier provider of international settlement services
Euroclear has a number of segregated accounts with CSDs in Asia, Europe, Africa and America. Countries where these accounts have been opened directly at CSD-level include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Malaysia, Mexico, Norway, Slovenia, locally in Strate, Sweden, The Netherlands and The United Kingdom. Singer adds:
Having an international client join other prominent institutions that have opened SDAs at South Africa’s CSD has highlighted how the market is working together towards improved levels of transparency and risk mitigation, ultimately to achieve greater resilience and stability in the financial market.
It is with solutions like the segregation of accounts that are held at an independent, neutral third party, such as the country’s CSD, that makes South Africa more attractive to the international investment community.”
SDAs have been operational in the South African market for over a year and are supported by the country’s legislation, as the amended version of the Companies Act (2008) allows for enhanced legal protection for investors.
Clients who wish to open an SDA at Strate can contact Leigh Bevis, Head of Stakeholder Relations at Strate, via LeighB@strate.co.za or telephonically on 011 759 5466.