Market Link Guide - South Africa

25.08.2020

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, Article 2(29).

CSD

Custodian

Name

Strate

Standard Chartered Bank, Johannesburg Branch

FATCA GIIN

66R8NP.99999.SL.710

JXJVJM.00000.LE.710

LEI

378900F4A0A690EA6735RILFO74KP1CM8P6PCT96

Country of incorporation

South Africa

UK

Account type

Ominibus account

Ominibus account

Legal account name

Clearstream Banking S.A.

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement free of payment

Yes

Settlement against payment

Yes

Eligible settlement currency: South African Rand (ZAR).

Settlement against payment in central bank money account of CBL/CBL customers

No

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 settlement

Yes

Debt securities only (government and corporate bonds).

Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

Yes

Refer to the Settlement Services – South Africa.
Pre-matching

Yes

 
Back-to-back processing

Yes

For dematerialised securities.

Allegements

No

 
Automatic compensation

No

Refer to Entitlement Compensation Rules for South Africa.
Registered securities

No

 
Multi Market Securities

Yes

Refer to the Multi-Market Securities Guide.
Lending and borrowing

Yes

Debt securities only.

Proxy voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

CBL Internal.

Market restrictions

Yes

Refer to Investment Regulation.
FTT

No

 
Daily reconciliation

Yes

 

Moment of entry of instructions

The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability of instructions

Transactions that are with status matched and committed are irrevocable and require bilateral cancellation.

Finality of instructions

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 7 July 2020. 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.

Record keeping period of at least 10 years

Confirmed

Settlement finality in case of insolvency

Confirmed