Strate continues to work with the JSE and other market participants to implement a shortened settlement cycle for equities, which will reduce from five business days to three days, and be in line with international standards. We will continue to distribute educational material from the JSE over the next couple of months and encourage you to familiarise yourself with the contents.
The JSE initiative, which kicked off in 2013, has been rolled out in phases, with phase 1 and 2 being successfully completed in 2013 and 2014 respectively. Phase 3 is now well under way and the proposed implementation date for this project is between May and July 2016.
Successful implementation of this project will improve the credibility and operational efficiency of our local equity market. The shorter settlement cycle will also lead to a decrease in the value of unsettled trades and an improvement in liquidity in the market. The further consequence of these benefits is that South Africa becomes an attractive destination for foreign direct investment.
Should you have any further questions regarding the project, please contact the JSE on the +27 (0)11 520 7000.