4AX goes live with two issuers using Strate’s settlement services

Strate welcomes the news that its client – one of South Africa’s newest exchanges, 4 Africa Exchange (4AX) – announced its first two issuer listings on the Exchange – NWK Limited and NWK Holdings Limited.


NWK used to trade shares in the over-the-counter market. However, changes to financial market legislation and regulations meant that companies like NWK had to trade these shares on a formal market.


The changes to regulation was one of the reasons that led to the creation of 4AX, which intends to provide a formal trading platform for the over-the-counter equities market. The company has indicated that it would broaden this to medium-sized enterprises, real estate investment trusts, restricted schemes and special purpose vehicles given that its licence allows it to serve multiple asset classes.


At the beginning of September 2016, the Financial Services Board notified the market that it had granted 4AX an exchange licence. Strate was appointed by 4AX to provide it with central securities depository and settlement services. 4AX offers investors a T+3 settlement cycle, allowing trades matched on its system to be cleared and settled within three business days after the trade date.


Gregory Naicker, the General Manger Product Development at Strate, says, “Strate welcomes the news of 4AX’s inaugural listings and we would like to commend 4AX on their historic milestone.”


According to news sources, 4AX is targeting nine more companies across the construction, engineering, hospitality, property development and tourism, two of which are expected to be inward listings.


Below are images of Greg Naicker with the 4AX executive team, as well as the NWK executive teams:



Strate partners with A2X Markets for Collateral and Settlement Services

On Friday 13 October, 2017, the first non-cash collateral exposure between A2X Markets and one of its brokers was successfully reported and settled using Strate’s Tri-Party Collateral Management Services. This came just over a week after A2X Markets had announced it was operational and  settling transactions on a T+3 settlement cycle using Strate’s settlement infrastructure.


Instead of placing cash to cover the capital exposure requirement (where cash is typically required to cover market and settlement risk), Strate’s collateral solution also enables broker’s to place securities as collateral for their exposure risk on A2X. This frees up cash for the broker, allowing brokers to more efficiently use cash to fund other transactions.


“A2X is excited with the prospects that Strate’s Collateral Management System adds to the market in reducing the risk between trade date and settlement date. Strate’s Collateral Management System brings about high levels of automation and the calling of collateral is seamless to the users,” says Brett Kotze, Head Post-Trade Services at A2X Markets.


Beverley Furman, the Managing Executive of CSD Operations at Strate, adds: “The capital markets are evolving and Strate has been nimble in developing premier solutions that cater for such dynamic players. A2X has an innovative business model that further decreases risk and capital costs for brokers, which ties into Strate’s philosophy of creating solutions that are efficient, reduce risk and add value to stakeholders. We are proud to be partnering with A2X Markets and its clients for both settlement and collateral solutions.”


Financial services companies, African Rainbow Capital Investments (AIL), Peregrine Holdings (PGR) and Coronation Fund Managers (CML) are the first counters to have a secondary listing on A2X Markets. It has approved RMB Morgan Stanley, Peregrine Securities, Investec Securities and Avior Capital Markets as its stockbrokers, with more brokerages expected to be approved in coming weeks.


A2X Markets was officially granted its licence by the Financial Services Board in April 2017, then becoming the country’s fourth licensed South African exchange and Strate’s newest client. It is targeting many of the largest companies currently listed on the JSE, to secondary list on A2X Markets. It says it is also offering brokers material discounts to transact in these shares, while maintaining the high standard of regulation as set by the Financial Market Act.



Go-Live Date for Strate’s Debt Instrument Solution Project announced

South African Central Securities Depository (CSD), Strate, has confirmed that all the milestones necessary to proceed with its Debt Instrument Solution (DIS) Project have been met. This landmark has been achieved through an extended period of commitment and testing involving all market stakeholders.


Strate is, therefore, pleased to announce that 22-26 September 2017 has been set aside for the formal implementation of the new system – with Tuesday 26 September 2017 being earmarked as the first day of operation using the new DIS platform.


We thank you for your support and look forward to your continued focus and dedication to achieving this successful transformation for the South African capital markets.




Strate uses its robust technology to service multiple markets

Strate, a South African Central Securities Depository (CSD), has shown the robustness of its clearing and settlement technology by offering equities settlement to multiple markets.


On 28 February 2017, it welcomed 4 Africa Exchange (4AX), the country’s newest exchange which focuses on listing companies that are currently trading over-the-counter (OTC) shares in Broad-based black economic empowerment (B-BBEE) schemes as well as limited participation schemes.  4AX successfully integrated their exchange into Strate’s clearing and settlement platforms. 4AX offers investors a T+3 settlement cycle, allowing trades matched on its system to be cleared and settled within three business days after the trade date.


At the beginning of September 2016, the Financial Services Board notified the market that it had granted 4AX an exchange licence. Strate was appointed by 4AX to provide it with central securities depository services.


Beverley Furman, the Managing Executive of CSD Operations, a division of Strate, says, “This is an exciting time for the capital markets. Three years ago, companies that had been trading OTC shares in B-BBEE schemes were instructed by the Registrar to license their over-the-counter platforms as a regulated exchange, or stop such trading activities, or apply for exemptions. Now the country has a dedicated exchange in the form of 4AX that can serve these companies.”


“Strate has been built on an 18-year foundation of trust, where we can be relied on by the markets to provide pioneering solutions that cater directly for their needs. The strategic focus has been on the evolution and strengthening of Strate’s core services. As we extend our services to multiple exchanges across multiple markets, it cements this notion, as well as our independence and high levels of operational excellence.”

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



Operational Timelines





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

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.

Continue reading

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.



Trusted to be an Independent Provider of Custody and Settlement Services

Strate’s success lies in its independence and good corporate governance. It has continued to be a trusted and independent party in the market, which is evident by Strate offering CSD services to new stock exchanges.


At the beginning of September 2016, the Financial Services Board notified the market that it had granted ZARX and 4 Africa Exchange (4AX) exchange licences, with conditions. Strate has been appointed the Central Securities Depository for both exchanges and will continue to explore further opportunities with other bourses.


Strate looks forward to working with its current and new clients in the years ahead.



Revolutionising South Africa’s Bond Settlement Model

With an average of R2.4 trillion bonds under Strate’s custody, Strate’s bond market clients will soon enjoy using one of the best and most-used CSD technologies globally, the TCS BaNCS Market Infrastructure (MI). It will enable the move from older technology ISO15022 standards to ISO20022 standards. Issuers will also be provided with an interface that can enable them to do their top-ups, redemptions, make calls or check balances directly with the CSD.  The streamlined corporate actions processes are expected to offer better, faster entitlement communication and payment distribution.


Strate is well on its way in introducing the revolutionary bond settlement system that uses a Securities Ownership Register (SOR) and provides numerous benefits to the market – such as ready support for segregated depository accounts and multiple settlement runs.


The technology also has the functionality for corporates to apply to become a direct CSD Participant at Strate. The technology allows a move away from omnibus account structures and break those down into individual or institutional accounts, an internationally-recognised best practice known as the SOR. The SOR is already utilised in Strate’s technology that settles money market securities. The introduction of an SOR provides issuers with real-time access to their note holders and improves transparency for the market.


Institutional clients, individuals and issuers that have their own accounts at the CSD will continue to have these operated by their CSD Participant. The technology will also enable member settled accounts, which provides the details of institutions or individuals sitting under stock brokers’ accounts. Strate’s solution allows the stock exchange to supply it with the information on a daily basis, uploaded directly into its system.


While South Africa is used to bonds settling on a T+3 settlement cycle in the Strate environment, the new system can cater for any settlement cycle from T+0 upwards. Its functionality also allows for back-to-back links across different markets; so if an asset is bought on exchange and is sold on the over-the-counter market, this functionality allows for greater efficiencies across all these markets.


TCS BaNCS MI for bonds will continue to use central bank funds to facilitate the payment leg of the transaction, ensuring risk mitigation remains a priority through simultaneous, final and irrevocable delivery versus payment (SFIDvP). In terms of this,  securities can never move without the cash being paid, or vice versa, irrespective of the settlement cycle. Furthermore, it provides multiple settlement runs to minimise failure.


The bonds  implementation is scheduled for mid-2017 forms part of a wider programme where Strate will replace its IT infrastructure for all asset classes. The implementation of money markets took place in February 2016, while the equities market will be switched over at later stages using a phased approach.


The new infrastructure offers the market a streamlined service, as multiple systems are consolidated into one. Strate is now in a position to offer more innovative products to the market in a much shorter time, using the new system.