Creation Link Guide - South Africa

11.05.2018

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect via Standard Chartered Bank - Johannesburg Branch to:

Strate Ltd for equities, warrants and bonds

a. CSD Regulation (EU) No 909/2014 art. 2 (29)


CSD

Custodian

Name

Strate

Standard Chartered Bank, Johannesburg Branch

FATCA GIIN

66R8NP.99999.SL.710

JXJVJM.00000.LE.710

LEI

48510000JZ17NWGUA510

5493001BABFV7P27OW30

Country of incorporation

South Africa

UK

Account type

Omnibus account

Omnibus account

Legal Account name

Account holder: Standard Chartered Bank, Johannesburg Branch

Securities are recorded in the name of Standard Chartered Nominees South Africa (Pty) Ltd

Standard Chartered Bank, Johannesburg Branch as the participant in Strate does not hold a segregated account for CBL.

Clearstream Banking SA

Operational arrangements

Yes/NoRemarks
Settlement free of paymentYes 
Settlement against paymentYesEligible settlement currency: South African Rand (ZAR).
Settlement against payment in central bank money account of CBL/CBL customersNo

CBL holds a cash account at the custodian. Against payment settlement in ZAR takes place on the cash account of Standard Chartered Bank Johannesburg at the local central bank

Bridge settlementYesDebt securities only (government and corporate bonds).
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesYesRefer to the CLG.
Pre-matchingYes 
Back-to-back processingYesFor dematerialised securities.
AllegementsNo 
Automatic compensationNoRefer to Entitlement Compensation Rules for South Africa.
Registered securitiesNo 
Multi Market SecuritiesYesRefer to the Multi-Market Securities Guide.
Lending and borrowingYesDebt securities only.
Proxy votingYes 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesYesCBL Internal.
Market restrictionsYesRefer to Investment Regulation.
FTTNo 
Daily reconciliationYes

Bilateral cancellation

Yes for transactions that are with status matched and committed.

Settlement finality

Settlement finality, by law, of both cash and securities is achieved upon settlement in the respective systems of Strate and the central bank SARB (South African Reserve Bank).

Legal arrangements

The below section is based on the legal opinion that was issued on
10 August 2017. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter

No insolvency proceedings against the custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed. Upper-tier attachment is solely allowed to a limited extent, that is, where securities held in the omnibus account with the CSD are secured in favour of a secured party in accordance with the provisions of South African law.

Insolvency of the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed. The pro-rating of loss among holders is only used in limited circumstances, post-liquidation. In all other circumstances the loss will need to be borne by the custodian.

Settlement finality in case of insolvency

Confirmed