The ongoing dematerialisation of South Africa’s money market securities is running according to schedule, and all Category 3 securities were issued in dematerialised form from the end August 2011. Category 3 money market securities comprise those securities which have a variable/floating coupon rate and fixed maturity date. Phase 1 of the dematerialisation of money market securities, launched in February 2010, included discount securities and fixed coupon securities with fixed maturity dates.
The dematerialisation of South Africa's money market has been one of the past decade's most important milestones for South Africa's financial markets.
Strate, South Africa’s Central Securities Depository, provides the infrastructure to issue an ISIN (International Securities Identification Number) electronically, record the issue, provide post-trade matching and facilitate the settlement of trades and coupon and maturity payments, as well as keep the record of beneficial ownership of every money market security in issue.
Anthony van Eden, Strate’s Chief Operating Officer, characterises the dematerialisation of South Africa’s money market as one of the past decade’s most important milestones for South Africa’s financial markets: