Slide 1: Fully Integrated Local & Global Tri-Party Collateral Management Services
Fully Integrated Local & Global Tri-Party Collateral Management Services Securities lending Validation & borrowing OTC derivatives - bilateral Reporting Eligibility Profiles Exposures JSE ITAC Repos Automatic Top-up, Collateral Debt Returns, Cash Calls Valuations Secured InterBank Automatic Automati
Slide 2: Key Strate Collateral Management Criteria
Key Strate Collateral Management Criteria • Collateral moves t+0 (Pledge or Cession (DFP,RFP)) • Mandatory use of SDAs o Two SDA accounts (giver and receiver) per asset class • Reporting o Unilateral (JSE Clear) o Bilateral Matched Exposures (Interbank Lending) |2
Slide 3: Placed Collateral – Pledge v Out-and-Out Cession
Placed Collateral –(Pledge v Out- and –Out) Pledge Out- and –Out Cession (1) Pledge is flagged on securities account of (1) Normal transfer Free of Payment collateral giver. (2) Collateral receiver cannot on use/transfer (2) Collateral receiver can use/transfer those those securities any longer secu
Slide 4: Strate Collateral Management Solution
Strate Collateral Financial Exposures Management Solution REPO OTC SARB CCP SLB •Submissions - Portfolio or Exposure Transaction (Strate Collateral Online, SWIFT or CSV) Client A Client B 3 7 7 3 Settlement Cycle •Clearing & Settlement T+0 8 •Movement within Strate SDA accounts Collateral •Preventio
Slide 5: Creation and Design of SDA Accounts
Creation and Design of SDA Accounts Giver and Receiver SDA accounts must be created per applicable Collateral Market (Bonds/MM/Equities) Separate SDA Accounts Per Market Exposure (Silo approach) SLB JSE ITAC Interbank Bond SOR Bond SOR Bond SOR Giver SDA 1 Receiver SDA 2 Giver SDA 3 Receiver SDA 4 G
Slide 6: Creation and Design of SDA Accounts
Creation and Design of SDA Accounts Giver and Receiver SDA accounts must be created per applicable Collateral Market (Bonds/MM/Equities) Single SDA Accounts for ALL Market Exposure SLB JSE ITAC Interbank Bond SOR Client A - Giver SOR 1 Client A - Receiver SOR 2 SLB JSE ITAC Interbank Equities SDA Cl
Slide 7: Typical Collateral allocation
Typical Collateral allocation Where a Bond and quantity has been selected to pledge from a giver SOR to a receiver SOR account CSDP One CSDP Two Bond SOR Bond SOR Pledge Client B Client A Giver 1 Receiver 22 • ISIN Free • ISIN Free Balance is Balance is reduced not affected • Pledge To • Pledge From