Market Link Guide - South Africa
CSD link as defined under CSDRa
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).
Standard Chartered Bank, Johannesburg Branch
Country of incorporation
Legal account name
Clearstream Banking S.A.
Clearstream Banking S.A.
|Settlement free of payment|
|Settlement against payment|
Eligible settlement currency: South African Rand (ZAR).
|Settlement against payment in central bank money account of CBL/CBL customers|
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.
Debt securities only (government and corporate bonds).
|Settlement penalty fees|
|Refer to the Settlement Services – South Africa.|
For dematerialised securities.
|Refer to Entitlement Compensation Rules for South Africa.|
|Multi Market Securities|
|Refer to the Multi-Market Securities Guide.|
|Lending and borrowing|
Debt securities only.
|Liquidity Hub Connect|
|Sale and purchase of rights|
|Refer to Investment Regulation.|
|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).
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
Liability for negligence
Book-entry regime with in rem rights
Recognition of nominee concept
No right of retention to the custodian
Segregation of assets at the custodian
No right of use
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
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|
Settlement finality in case of insolvency