SA’s
Multibillion Rand Money Market Goes Electronic
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Africa’s multibillion Rand money market industry has
officially commenced the electronic issuing, trading and settlement
of these securities in place of the manual paper based system
which has been in existence since inception of the Money Market.
As the largest issuer of money market securities, the South
African Reserve Bank (SARB) has welcomed the implementation
of a fully dematerialised money market. All SARB Debentures
and National Treasury Bills are now being processed in the
new electronic format. Other major financial institutions
have also fully embraced the dematerialised market.
Gail Edye, Assistant General Manager: Financial
Systems Support at the SARB, explains that this system is
long overdue in the market, bearing in mind the efficiencies
and reduction in risks that can be achieved with dematerialising
securities. This includes the reduction of operational risk
through a single point of electronic capture of executed trades,
settlement information and coupon and maturity dates and amounts.
The risks associated with theft, fraud and loss of paper share
certificates in the current environment are also mitigated
with the introduction of the new system.
The new system is provided by Strate, South
Africa’s Central Securities Depository. Strate’s
Chief Operating Officer, Anthony van Eden said the “move
of the country’s money market from the current manual
custody, clearing and settlement processes into a fully electronic
environment has allowed enhanced straight-through-processing
and risk mitigation for all issuers and investors in this
informal over-the counter financial market.”
The project has been an industry initiative
which the market has partnered with Strate on for a number
of years. It is rewarding to see the electronic transacting
of money-market securities, as this marks a significant milestone
for the South African financial markets and its status internationally.
Strate Training
on Electronic Money Markets
Strate Training is pleased to be able to offer training seminars
and training material with regards to the Electronic Money
Markets. This is in addition to the current training in Equities
and Bonds offered by Strate. These seminars are open to anyone
who is operating in the Money Markets environment or who are
simply interested in how this new electronic issuing, trading
and settlement of money market instruments will work. Training
seminars can also be customized to your organization’s
specific requirements.
The Money Market material comprises of the
following modules:
Module 6 consists of the following sections:
- Introduction to and the Basics of Strate
- The History of the Electronic Money Markets
- Types of Money Markets Securities / Issuing
- Institutions in the electronic Money Market
- Electronic Registers
Module 7 consists of the following sections:
- Legal
- Regulation and Supervision
- Compliance
- Risk
Module 8 consists of the following sections:
- Electronic Trade Matching Engine
- Trading, Clearing and Settlement of Money Market
- Securities
- Pledge and Release Pledge
- Capital Events
- SARB Transactions
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