Electronic settlement company and central securities depository Strate is to increase its fees from 1 October.
CEO Monica Singer says that in October last year Strate unveiled its fee structure for the electronic settlement of trades concluded on the JSE.
Strate's contract note fee came into effect in November last year. It was introduced at 10c per contract note with a view to ultimately increasing the charge to R6, she adds.
"The reason behind the phasing in of this fee is that the fund managers' systems were unable to distinguish between dematerialised and certificated counters. As such, the contract note charge had to apply to all listed counters, irrespective of whether they were settling electronically or not."
She adds that as more counters move into the Strate environment, the contract note fee increases incrementally.
"As per the cost schedule publicised by Strate last year, the fee increased from 10c to R2 on 2 July this year. The R2 charge will rise to R4 on 1 October 2001. On 2 January 2002, by which time all JSE listed counters will have migrated to Strate, the full R6 contract note fee is due to be implemented.
"We now have over 460 counters on Strate, with electronic settlement and dematerialisation activity having proceeded smoothly, efficiently and with no disruptions."
The R6 contract note fee, which Strate says ranks among the lowest in the world, will be subject to regular review based on a variety of recovery factors.
"Strate, however, remains committed to the provision of a sophisticated electronic settlement service at globally competitive rates."
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