Debt Instrument Solution (DIS)

At the beginning of 2008 Strate (PTY) Ltd 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 (PTY) Ltd Board of Directors. A series of workshops involving stakeholders drawn from all areas of the Debt Instrument Financial Market were held during 2008; with the sole purpose of producing the Debt Instrument Solutions Blueprint. By March 2009 Strate (PTY) Ltd had received 'Sign off' on the Blueprint from all the stakeholders. Due to the merger of the Bond Exchange of South Africa Ltd (BESA) and the Johannesburg Stock Exchange Limited (JSE), the project was put on hold. .  

Towards the end of 2009, Strate (PTY) Ltd took a strategic decision to push ahead with the project and develop a Business Requirement Specification using the DIS Blueprint as their frame of reference. The DIS Blueprint workshops found that the current Debt instrument solutions is no longer adequately flexible to continue meeting changing customer needs. The existing system is over twenty years old and was developed using LU 6.2 protocol, which is no longer supported by external vendors. Strate (PTY) Ltd will be looking at the synergies between the Money Market and the Debt Instrument Market with the intention of limiting the amount of re-work necessary for both Strate (PTY) Ltd and its Clients. Strate (PTY) Ltd has taken the following strategic decisions in preparing the Debt Instruments BRS:

  • To utilize the ISO 15022 messaging standard for interaction between Strate (PTY) Ltd and business partners, however cognizance of the Introduction of ISO20022 by SWIFT and the synergy between the two standards will be evaluated and reviewed on request by the market
  • To facilitate both retail and wholesale model for this solution.

The proposed solution will also adhere to international Best Practices where applicable to the South African Debt Instrument Market i.e. the use of ISO standards as the communication infrastructure.   Strate (PTY) Limited "Strate" took a strategic decision in 2013 to replace its core custody and settlement systems and consolidate these into a single platform. The "TCS BaNCS MI" system was chosen and Money Market Securities were successfully migrated onto the platform at the beginning of 2016..

Strate's "DIS Project" is the strategic project to replace Strate's previous "UNEXCor" bond settlement system and migrate Bonds Securities onto the TCS BaNCS MI platform during 2017. Equities Securities will be the last migration and this is currently planned for the end of 2018.

The key project currently being undertaken by Strate and the South African capital markets is the "DIS Project". This project will ensure not only the replacement of State's core custody and settlement system with regards to Bond Securities, but will include the introduction of a new settlement model for Bond Securities.​

 Related Documents

 

 

JSE Bond Timelines_v1.0_FinalJSE Bond Timelines_v1.0_Finalhttps://www.jse.co.za/content/JSEDocumentItems/DIS/JSE Bond Timelines_v1.0_Final.pdfpdf
JSE Failed Trade Procedure_V1.0_FinalJSE Failed Trade Procedure_V1.0_Finalhttps://www.jse.co.za/content/JSEDocumentItems/DIS/JSE Failed Trade Procedure_V1.0_Final.pdfpdf
Market Claims_v1.0_FinalMarket Claims_v1.0_Finalhttps://www.jse.co.za/content/JSEDocumentItems/DIS/Market Claims_v1.0_Final.pdfpdf
Client Account Reference Data v1.0Client Account Reference Data v1.0https://www.jse.co.za/content/JSEDocumentItems/DIS/Client Account Reference Data v1.0.pdfpdf
Bonds Settlement Obligations_v0.5_FinalBonds Settlement Obligations_v0.5_Finalhttps://www.jse.co.za/content/JSEDocumentItems/DIS/Bonds Settlement Obligations_v0.5_Final.pdfpdf

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