The JSE has moved closer to total straight through processing with the decision by STRATE (Share Transactions Totally Electronic) to purchase SWIFT Alliance Access, valued at R2 million, for its securities depository and electronic settlement messaging system from JSE Securities Exchange-listed Global Technology.
SWIFT is the Society for Worldwide Interbank Financial Telecommunications, a co-operative society owned by banks and financial institutions, providing secure messaging services and interface software to over 7 000 members in 193 countries. Glotec is the SWIFT Business Partner for the Southern African Development Community (SADC), and for Kenya, Uganda and Madagascar.
STRATE is the company established to implement and manage the new electronic settlement system for equity transactions and for off-market trades. The move to electronic settlement will bring SA in line with the world`s leading financial markets, enhancing both the security and speed of transaction settlement in the equities market. STRATE Ltd is a public unlisted company and the approved Central Securities Depository (CSD) for equities in SA.
SWIFT Alliance Access will interface with STRATE`s existing SAFIRES electronic integrated depository, clearing and settlement system, and, in a separate deal with the Clearing and Settlement Depositories Participants (CSDPs) and Transfer Secretaries, will interface to the existing (Safe) front-end application and enable them to access SAFIRES directly.
"With a current message volume of 8 000 messages daily, STRATE already accounts for 25% of the total SWIFT message volume in the securities-related category," says Monica Singer, CEO of STRATE. "However, we expect STRATE`s SWIFT volumes to reach 260 000 messages a day once the JSE`s more liquid counters migrate to the electronic settlement environment.
"This will move SA up from 20th to sixth largest user of SWIFT worldwide, making STRATE a strategic player and leader in the expanding SWIFT arena," she says.
"SWIFT has become the de facto standard for securities messaging, with SA as one of the industry leaders," says Global Technology`s Paul van Dyk. "STRATE`s choice of SWIFT will have far-reaching, beneficial consequences for the country as a global market player, and as an active force in the future direction of this global financial co-operative society."
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