In 2008, Strate embarked on an initiative to re-write the Central Securities Depository (CSD) bonds system. This initiative was mandated by the Bonds Advisory Committee and endorsed by the Strate board. A series of workshops involving debt market participants were conducted to produce the debt instrument solutions (DIS) blueprint. An outcome from the workshops, was that the current debt instrument solutions did not meet customer needs, as the existing system was over 20 years old and no longer supported by external vendors.
In 2009, Strate received sign off on the blueprint from all stakeholders. The project was, however, placed on hold due to the merger of the bond exchange of South Africa (BESA) and the JSE. Towards the end of 2009, Strate decided to push ahead with the project and develop a business requirement specification, using the DIS blueprint as the frame of reference. Strate investigated synergies between the money market and the debt instrument market to limit the amount of re-work required for Strate and its clients. Strate took the following strategic decisions in preparing the debt instruments business requirement specification:
- To utilise the ISO 15022 messaging standard for interaction between Strate and business partners, however cognisant of the introduction of ISO20022 by SWIFT. The synergy between the two standards was evaluated and reviewed on request by the market.
- To facilitate both retail and wholesale model for this solution.
The proposed solution will adhere to international best practices, where applicable, to the South African debt instrument market. For example, the use of ISO standards as the communication infrastructure. In 2013, Strate decided to replace its core custody and settlement systems and consolidate these into a single platform. The TCS BaNCS MI system was selected, and money market securities were migrated onto the platform in 2016.
Strate's DIS project is the strategic project to replace Strate's UNEXCor bond settlement system and bonds securities were successfully migrated onto the TCS BaNCS MI platform in 2017. Equities securities migrated to the platform in 2019.
If you require more information let’s connect on +27 11 520 7000 or [email protected].