Strate appointed by SARB to publish JIBAR post-trade disclosures
As South Africa’s principal central securities depository (CSD) and financial market infrastructure, Strate has been appointed by the South African Reserve Bank (SARB) as the publishing agent for the Johannesburg Interbank Average Rate (JIBAR) post-trade disclosures, an initiative that will contribute to the enhancement of the credibility and integrity of JIBAR.
The effort to enhance the credibility of JIBAR is part of the SARB’s broader plan to strengthen the critically important reference rate in the interim and secure a transition period while an alternative near risk-free reference rate is being developed.
For South African financial market participants and foreign and local investors alike, the post-trade disclosures will bring an enhanced level of transparency about primary and secondary market transactions related to JIBAR, helping to boost confidence in the rate and in South Africa’s standing as a well-regulated and efficient market.
Strate’s pivotal role in the domestic dematerialised money markets through the provision of trade settlement and custodial services, places it in a unique position to be able to provide post-trade disclosures for JIBAR.
It follows a global trend of regulators reviewing the lack of transparency in how interbank offered rates (IBORs) are determined and a move to alternative reference rates.
“Strate’s purpose is to serve the financial markets and we are pleased to be able to do this by publishing this data on our website and Data Services platform for use by financial market participants and investors,” says André Nortjé, Chief Executive Officer, Strate.
“Financial market participants and investors will gain access to rich data on volumes and averages in the South African market, such as the volume weighted average rate of all trade concluded the previous day, the rate occurring at the 10th, 25th, 75th and 90th percentiles of volume and the aggregate volume of all trades concluded the previous day,” says Gregory Naicker, Head: CSD Services at Strate.
Further benefits include providing the market with insight into primary, secondary and buy-back transactions, assisting banks in assessing their re-financing risk, especially during stressful periods or extraordinary events, using the outstanding nominal value of assets and giving foreign investors access to money market data, which could further encourage foreign investment into the country and improve confidence in the operational integrity of South Africa’s financial markets.
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