Dual-listed settlement problem solved

By Iain Scott, ITWeb group consulting editor

Johannesburg, 15 Jan 2002

A problem related to the electronic settlement of JSE-listed shares with a primary listing in London has been solved.

Strate, the central securities depository and electronic settlement company, says it is now working on a similar solution for Swiss-registered Richemont.

Strate says the dual-listed settlement problem arose because of a UK legal stipulation that a transfer instrument is required if settlements are not effected by Crest, Strate's UK equivalent.

Anglo American, Billiton, SA Breweries, Liberty International and Old Mutual shares were affected.

Strate has formed a new company to solve the problem. All UK plc company shares eligible for settlement in Strate are registered in the new company, PLC Nominees, and kept immobilised in certificated form.

PLC Nominees is recognised as the legal or registered holder on the South African overseas branch register of the UK plc company, which means that changes in ownership under Strate do not require a written instrument of transfer, since there is no change in registered owner.

The maintenance of the PLC Nominees register has been outsourced to Strate, whose CEO, Monica Singer, says the settlement through PLC Nominees has been progressing smoothly.

The PLC Nominees balance is being reconciled daily to the aggregate of all central securities depository participants' holdings and the overseas branch register balance.