AMEDA Conference Mauritius

AMEDA Conference

Mauritius

PRESENTED BY: Monica Singer, CEODATE: May 2008

We are committed to be the trusted and preferred

centralised provider of products and services which

are accessible to, and create value for, our current

and future stakeholders

Vision of Strate

Strate’s Strategic Direction

Strate’s purpose is to provide stakeholders

with clearing, settlement and depository

services for securities, enabling end-to-end

pragmatic, reliable, innovative solutions that

facilitate the management of risk and the

realisation of value.

Purpose of Strate

Strate’s Strategic Direction

History of Strate

October 1996-project begins

September 1997-technology to be acquired identified

May 1998-contract for system implementation signed with TCS and SARB goes live with

SAMOS

1999-Legislation amendments approved by Parliament

November 1999-system live with Harmony Gold Mine

July 2000-12 more companies into Strate

March 2001- schedule for all companies to move into Strate approved

January 2002-all listed companies settling in Strate

August 2003-merger with Unexcor and CD Ltd approved

Clearing and settlement of equities, bonds and money market instruments (2009)

Benefits of Strate

Rolling, contractual, guaranteed settlement

Simultaneous final irrevocable delivery versus payment in Central Bank Funds

Reserve Bank connectivity and payments via Central Bank funds

World class settlement system – SAFIRES

S.W.I.F.T Connectivity (ISO 15022 standards) and WAN

Risk Management – given top ranking by Thomas Murray

Corporate Actions processing with no claims

Robustness of support for business continuity capability and Disaster Recovery

G30 compliance except T+ 3 for equities

Adoption of IOSCO principles

Electronic securities lending and borrowing

No failed trades

Markets we service

Equities – Shares, Exchange Traded Funds and Warrants (T+5)

Alt-X (T+5)

Yield-X (T+3)

Bonds (T+3)

MMI – November 2008 (T+0)

Namibian Stock Exchange (NSX) (T+5)

Strate’s Shareholders

Board Composition

Chairman (Independent Non Executive)

One executive director

Two representatives from the JSE Ltd (shareholders)

Two representatives from the Banks / Participants (rotation basis) (shareholders)

One representative from issuers

One representative from asset managers

Five independent non executive directors

Management Team

CEO

Head of Marketing and HR

Head of Finance

Chief Operating

Officer

Head of Risk

Management

Head of Legal

Head of IT

Head of Clearing

And Settlement

Head of Issuer

And Asset Servicing

Project Office

Head of Supervision

Total number of employees as at end March 2008 = 114Total number of employees as at end March 2008 = 114

Market activity on the JSE – Number of TradesM

illio

nsM

illio

ns

Market activity on the JSE – Annual Turnover

Liquidity – 40%Liquidity – 40%

Market activity on the Bond Exchange of South Africa – Nominal Value of Issues

Market activity on the Bond Exchange of South Africa - Market Turnover

Liquidity – 1900%Liquidity – 1900%

Current Projects

Electronic settlement of Money Market Instruments (Nov 2008 – proposed pilot phase)

Corporate Action Automation (System selection underway)

Bonds Automation (replace and enhance the current bonds system)

T+3 for equities

Application Service Provider Custody Solution (Strate / TCS to provide a custody

technology solution for participants)

SRG 2008 (SWIFT release)

TASE (Facilitate offshore investment to settle in a foreign CSD and mirrored in Strate),

a joint venture with Citibank.

Current Research / Future Projects

Settlement of Carbon Credits

Implementation of Retail model / Securities Ownership Register

Issuer Services Enhancement (E-proxy, E-books, E-AGM to enhance communication

between issuers and investors

Dematerialisation of title deeds

Available to other CSDs

Money Market Instruments including ISO 15022 standards

International Best Practice Research – findings, concepts and Request For Information

responses

Application Service Provider Custody Solution model

Depository clearing and settlement using Strate’s technology as a hub

Questions?Contact Monica Singer

monicas@strate.co.za

+27 11 759 5311