Market Link Guide - South Africa
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 | 378900F4A0A690EA6735 | RILFO74KP1CM8P6PCT96 |
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/No | Remarks | |
| 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 22 June 2023. 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 |