Asset servicing - South Africa
Income collection
Debt securities
Interest is paid to the account holder in CBL on interest payment date with same-day value based on the positions recorded at the close of business on the record date, one month prior to the payment date. Income on trades with domestic counterparties is determined according to the settlement date.
Interest is calculated on the basis of actual/365 days per year for all types of debt securities and is payable semi-annually in equal amounts.
| Service offered | Remarks |
| Notification to customers | |
Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal and Xact File Transfer. | See Section 8 “Asset servicing” of the Customer Handbook. See Connectivity manuals on the Clearstream website. |
| Payment of proceeds | |
Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value. The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. | For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook. |
Equities
Dividends on equities are determined by the relevant companies according to domestic market practice and are updated by CBL in accordance with information received mainly from the depository.
| Service offered | Remarks |
| Notification to customers | |
Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal and Xact File Transfer. | See Section 8 “Asset servicing” of the Customer Handbook. See Connectivity manuals on the Clearstream website. |
| Payment of proceeds | |
Dividends proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value. The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. | For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook. |
In the physical environment, dividends are credited to the account holder in CBL on dividend payment date with same-day value based on the positions recorded at the close of business on record date, one month prior to payment date. Entitlements to be paid on equities are determined according to trade date.
In the STRATE environment, dividends announced by South African primary listed companies are usually paid one business day after record date. Dividends paid by dual-listed public limited companies with a secondary listing on the JSE usually follow UK dividend payment time lines with payment date 3 to 4 weeks after record date.
Corporate actions
| Service offered | Remarks |
| Notification to customers | |
Clearstream Banking advises customers of their entitlement to participate in South African corporate actions (including, but not limited to, rights issues, stock split and tender offers) subject to their availability to foreign investors. | No specific deviations from standard reporting provided by CBL apply to the South African market. |
| Instruction to CBL | |
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges, detachment of warrants etc. | In addition, CBL informs customers on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc. |
Proxy Voting procedures
Proxy voting services are available in CBL for this market. For details about the proxy voting services offered by CBL, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Market Profile - South Africa.
Entitlement compensation rules
Please refer to the Entitlement Compensation Rules - South Africa.