Like other financial market infrastructures, CSDs were established to reduce systemic risk and improve market transparency. They are designed to have a high degree of security and to be reliable.
The electronic record of shareholding in Strate is subject to extensive controls, with sophisticated encryption and authentication in the coding of the software. The security of the electronic records has never been compromised. Strate uses the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network for the relay of electronic information. The majority of international interbank messages use the SWIFT network, as it enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment. It is one of the most secure networks in the world with a consistent 99% uptime since its inception.
As one of the highest users of the SWIFT network globally, Strate also provides SWIFT network services to other financial institutions and large corporates in South Africa. This provides a cost effective mechanism for them to use the SWIFT network without having to contract directly with SWIFT, giving them access to a reliable and secure communications channel, which ensures delivery of instructions between counterparties timeously and without fear of interception or tampering. As an alternative to SWIFT, Strate also offers clients access to its state-of-the-art VPN infrastructure, which also offers high levels of encryption, non-repudiation and guarantees of delivery.
To find out more about the following IT Services, click on the names below: