As South Africa’s licensed Central Securities Depository (CSD), Strate executes all corporate actions and events in respect of dematerialised securities for the market. The benefits of Strate's corporate actions model cannot be underestimated, given the significant risk reduction and cost savings in the corporate action arena.
Corporate actions are executed electronically in a quick and secure manner (for example, interest, dividends, etc.). Payments are transferred electronically with same-day value, eliminating the costs and risk associated with cheque payments.
Issuers and investors therefore benefit from increased level of efficiency and cost effectiveness and, most importantly, the elimination of market claims. The elimination of market claims is an objective which still eludes many of the leading CSDs worldwide. The virtual attainment of this objective ranks Strate and the South African market as a world leader in the administration of corporate actions. Despite the increasing complexity of corporate actions and events in the market, Strate, together with its participants continues to process all events on behalf of issuers in South Africa.
In an effort to meet our clients’ needs, Strate recently launched its corporate actions product range, namely Strate Asset Servicing (SAS), which brings efficiencies and cost reductions to its users.
To find out more about SAS, email the team on SASStrate.co.za