In March 2016, ZAR X, South Africa’s new exchange, announced that it had been granted conditional approval from the South African Financial Services Board to operate. ZAR X’s first milestone after receiving its conditional licence was to announce its partnership with Strate.
A key factor in the relationship with Strate to date has been the close collaboration in the development of T+0 settlement, or same day settlement of trades, minimizing the time-lag between matched trade and settlement and clearing into an investor’s account. The ZAR X approach also mitigates settlement risk as transactions are pre-funded.
Etienne Nel, CEO of ZAR X, commented: “Strate has made T+0 settlement possible for our clients, which is significantly shorter than the current T+5 turnaround on offer. We are delighted to be partnering with a reputable partner like Strate – the ideal operator to provide our clearing and settlement services because of its proven track record and its trusted and independent third-party status.”
ZAR X will benefit from the same robust infrastructure that is currently in place for the clearing and settlement of trades. Strate will further collaborate with ZAR X to ensure that their systems can fully integrate into its clearing and settlement platforms prior to going live. This demonstrates that Strate is in a position to create innovative and responsive services in the interest of a common goal: to grow and enhance the liquidity and sustainability of the financial system in South Africa.
ZAR X is scheduled to begin operations in September 2016 and will offer simple, fast and affordable platforms for corporate listings and share trading, with strong focus on the market in restricted equity offerings, primarily black empowerment securities.
CEO of Strate, Monica Singer: “ZAR X will benefit from the same robust infrastructure that is in place for the clearing and settlement of trades. Strate will collaborate with ZAR X to ensure that their systems can fully integrate into its clearing and settlement platforms prior to going live. This demonstrates that Strate is open for business and is in a position to create innovative and responsive services in the interest of a common goal: to grow and enhance the liquidity and sustainability of the financial system in South Africa. We look forward to building an ongoing and sustainable relationship with ZAR X.”
