EQUITIES MODULE 1 - INTRODUCTION - created from Mind Map

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History of electronic settlement in South Africa and the run up to Strate

in the early 1990s the JSE appointed a sub-committee to investigate all operations of the JSE

Intro of an electronic settlement system for bonds.

working groups introduced in Jan 1995

JSE and the Council of South African Bankers (COSAB) signed an agreement on the 03 April 1995 where the parties agreed to assist each other and cooperate to achieve several targets

JSE and BankServ signed an agreement on 2 may 1996 to work together in designing and implementing a modern electronic clearing and settlement system that would meet the G30 recommendations

The JSE implemented an electronic settlement system in June 1996

The merge of Strate and UNEXcor ( "Universal Exchange Corporation") occurred in 2003

The committee was referred to as the "Katz Committee"

System operated by Bankserv

One of the groups were to focus on researching the requirement for electronic settlement and custody

The JSE endeavoured to investigate the following:

Restructuring the SA Securities market to ensure it could be placed in an internationally competitive position in the shortest practical time

How Securities transactions could be conducted at internationally competitive costs, without compromising the integrity of the market

The legislative amendments requires and regulations or drafting of rules or Directives to cater for the implementation of electronic settlement and custody

The agreement provided for the establishment of a steering committee known as "Electronic Settlement Committee: (EESC)

The Committee was constituted with the following

On the 16 May 1996 the EESC had their first meeting

In mid-1997 the JSE took over the running and financing of the EESC but with substantial input from all market players.

Each party to have equal representation on the committee

2 chairpersons at all times. One appointed by each party with chairmanship of the meetings rotating every three months