The move to T+3. Phase 3 Training Module 1 JSE: Post-Trade and Information Services 2016

Transcription

1 The move to T+3 Phase 3 Training Module 1 JSE: Post-Trade and Information Services 2016

2 Agenda Module 1 Module 1 Training Topic: Content to be covered: Time T3 Intro Why are we doing this / Benefits / Known areas of Concern etc. 20 mins T3 Timeline Overview Overview of the new timeline / comparison to T5 timeline 20 mins CA Timeline Overview Overview of the new timelines for the different CA classes 20 mins BDA Timelines Overview Including treatment of JSE trustees etc. 20 mins BDA Explanation of how the calculation of SFA's work 30 mins Margins Explanation of the timing of commits and impact on margin flows 10 mins Automations in BDA Prime Broking, Account Transfers, Entitlements (DL and Uploads), SLB uploads, SLB (automation of messages) 60 mins 2

3 Agenda Module 2 Module 2 Training Topic: Content to be covered: Time Explain the causes (and mitigations of ) of failed trades (all scenarios) From a Settlement Authority perspective- how to pick up problem instruments SLB (Settlement Authority Point of View) Terminating vs. Non-terminating transactions 90 mins Rolling vs. re-transaction vs. compensation Fails Management ECS / BDA Integration (ECS 34) New ECS screens around fails management and rolling of settlement Front end BDA elections / Adjustment screens 10 mins BDA 10: - Explain calculation of terminating vs. non-terminating (and handouts ) - ECS 31 and 32 - BDA diagrams which explain transactions (entries on BDA for fails management) 30 mins 3 Migration Schedule Overview Other Functionality - Overview of the migration week schedule (Week before and Week after) - Known areas of concern - Mitigations to be put in place - New Status Intimations / Spreadsheets & Fractions / Freezing of Registers 15 mins Testing Testing process overview 15mins

4 Agenda Introduction T+3 Timeline Overview Corporate Action Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 4

5 The aim of the T+3 project The primary aim of the T+3 project is to shorten the settlement cycle for equities from 5 to 3 days 5

6 The aim of the T+3 project Prior to the crisis, many markets had already settled on T3 since The JSE s settlement cycle is notably out of step with global precedent (including emerging markets) CCPs / Exchanges Settlement Cycle Tel Aviv Stock Exchange (TASE) Israel, Kuwait Stock Exchange, Saudi Stock Exchange Eurex Eurex Clearing, HKEx Hong Kong Stock Exchange, Bulgarian Stock Exchange, Ljubljana Stock Exchange (Slovenia) LCH LCH Clearnet, DTCC The Depository Trust & Clearing Corporation, ASX Australian Stock Exchange, TSX Toronto Stock Exchange, BM&F Bovespa Brazil Stock Exchange, Mexico, Oman Stock Market (MSM), Nasdaq T+0 T+2 Moved or moving to T+2 JSE T+5 According to Thomas Murray, fail rates for most exchanges are between 2 and 8 percent 6 Source: Stock Exchange websites, Chevreux/Credit Agricole Markets Trading Guide 2012; Thomas Murray Sept 2006

7 Project Rationale The move to T+3 has been on the cards for many years and is now mandated by South Africa s Financial Services Board (FSB) Thomas Murray findings in 2006: South Africa should move to a T+3 settlement cycle even if it results in some failed trades. Global benchmarks would improve by moving to T+3 even if there are fails It is the only area where South Africa does not meet the FTSE requirements for an Advanced Emerging Market* FSB mandate November 2012 license renewal letter:...concerns were raised by the Licensing Committee regarding the continued delay in the implementation of the T+3 settlement cycle for equities as well as the perceived lack of prioritising the shortening of the settlement cycle. We request that the JSE do whatever is necessary to ensure the successful completion of this project. 7 Source: Extracted from Thomas Murray White Paper, October 2006; FSB license renewal letter Nov 2012

8 Project Rationale (cont.) Why is a shorter settlement cycle relevant? 1. Exposure: Client-side transactions between buy-side and brokers represent significant uncollateralised, unguaranteed exposure 2. Capital The amount of this market risk depends on time and volatility and thus increases with longer settlement cycles CSDPs are starting to hold capital for exposures. Longer cycles mean more capital 3. Systemic Risk Systemic risk increases when the magnitude of outstanding transactions increases (risk is based on number of outstanding transactions and the concentration) Source: BCG (Oct 2012) 8

9 Project Rationale (cont.) What are the benefits of reducing the JSE s settlement cycle? Align to global best practice comply with the FSB mandate Harmonisation across international markets Increased liquidity faster reinvestment of assets that are released from the settlement process quicker Margin will be called earlier in the cycle Reducing the number of outstanding unsettled trades will: reduce settlement exposure / credit risk reduce systemic risk improve efficiencies by causing participants to adapt and modify behaviours The FSB has mandated the JSE to move to T3 settlement cycle T3 is now a licensing requirement Source: BCG (Oct 2012) 9

10 Project Impacts Does a shorter settlement cycle mean more failed trades? According to Omgeo (global standard for PTS efficiency): The world-wide shift towards shorter settlement cycles will increase the number of failed trades, unless post-trade operational practices are adapted to reduce the period between trade execution and settlement. The most important change required is that market participants should affirm trades on the day the trade is executed, enabling both timely and accurate settlement. Custodian banks and their clients cite inaccurate settlement and account instruction (SI) data as the most significant reason for failure, followed by the deliberate failure to settle by counterparties and mismatches between cash and securities cycles. The shorter settlement cycle does introduce the potential for failed trades, as less time is available for the resolution of any operational issues that may occur Source: Omgeo (May 2012) 10

11 Project Impacts (cont.) How will the JSE keep failed trades low? Plans to reduce fails: Further automation from trade execution to settlement this includes going to real-time trade confirmation on T part of the Phase 2 release Further automation across the market for Corporate Actions Removal of inefficiencies with regards to share removals between global and local markets this has been the cause of all of failed trades since the go-live of electronic settlement. This will be compounded when moving to T+3 as the local settlement cycle will mirror global markets Increase Securities Lending & Borrowing liquidity make more shares available for lending & borrowing to ensure settlement Preparing the market for the move to T+3 Behavioural change and efficient operations are vital to the process 11

12 Overview of the T+3 timeline Overall programme status Phase Status 1 Implemented successfully - 22 July Implemented successfully 20 October and 27 October Analysis in progress, commenced with development and iterative testing Phase 1 Regulatory and Automation Phase 2 ECS go-live on T+5 Settlement Cycle 25 June to 23 July 2016 go-live Phase 3 Market on T3 settlement cycle 12

13 Overview of the Phase 3 scope Functions changing / impacted JSE CSDPs JSE Equity Members Strate Clients T+5 to T+3 settlement cycle (timeline changes) x x x x x Scrip Lending and Borrowing / Money Lending and Borrowing x x Terminating transactions BDA (Control clients and Brokers Prop) x x x x x Terminating transactions CSDP's x x x x x Failed Trade Management x x x x x Margining (SFA's) x x Rework SFA's for prime broking x x These changes affect a number of systems within the JSE 13

14 Agenda Introduction T+3 Timeline Overview Corporate Actions Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 14

15 15 T+3 settlement cycle new view

16 On-market activities current versus future Action Current Timings T+5 Future Timings T+3 Settlement Orders noncontrolled clients T - Batch T - Real-time after allocations Client Affirmation to CSDP/Rejection to broker T+2 (12h00) T+1 (18h00) Deemed Affirmation Client T+2 (12h00) T+1 (18h00) Broker re-allocation T+2 (16h00) T+1 (18h00) Client affirmation of re-allocation T+2 (16h00) T+1 (18h00) Brokers nets T+2 (EOD) T+1 (EOD) 16

17 On-market activities current versus future (cont.) Action Current Timings T+5 Future Timings T+3 Margining T+3 (EOD) T+1 (EOD) Principal Assumption (reverse substitution) Broker borrowing on Principal Assumption T+4 (12h00) T+2 (16h00) T+4 (12h00 to 14h00) T+2 (16h00 to 18h00) Settlement Authority SLB T+4 (14h00 to 16h00) T+3 (08h00 to 10h00) Failed Trade/Rolling Of Settlement T+4 (16h00 to 18h00) T+3 (10h00 to 12h00) Settlement T+5 T+3 17

18 Off-markets activities current versus future Type Depository Receipts Current Settlement Cycle Reporting Time Commit / BTB Time Future Settlement Cycle Reporting Time Commit / BTB Time Min T+1 15h00 (S-1) 17h00 (S-1) Min T+0 18h00 (S) 18h00 (S) Depository Receipts on RD Not permitted on RD Min T+0 09h00 (S) 10h00 (S) Off-markets T+5 12h30 (S-2) 17h00 (S-2) T+3 12h00 (S-1) 15h00 (S-1) Acct Transfers Min T+0 18h00 (S) 18h00 (S) Min T+0 18h00 (S) 18h00 (S) Acct Transfers on RD Not permitted on RD Min T+0 09h00 (S) 10h00 (S) 18

19 Off-markets activities current versus future (cont.) Type Portfolio Moves Portfolio Moves on RD Off-market SLB Current Settlement Cycle Reporting Time Commit / BTB Time Future Settlement Cycle Reporting Time Commit / BTB Time Min T+0 18h00 (S) 18h00 (S) Min T+0 18h00 (S) 18h00 (S) Not permitted on RD Min T+0 09h00 (S) 10h00 (S) Min T+1 15h00 (S-1) 17h00 (S-1) Min T+0 13h00 (S) 15h00 (S) SLB BP Min T+1 15h00 (S-1) 17h00 (S-1) Min T+0 13h00 (S) 15h00 (S) SLB Rev Substitution Min T+1 12h00 (S-1) 14h00 (S-1) Min T+1 14h00 (S-1) 18h00 (S-1) SLB Returns (Off-market and BPs) Min T+0 (BPs) 09h00 (S) 10h00 (S) Min T+0 17h30 (S) 18h00 (S) 19

20 Off-markets activities current versus future (cont.) Type Off-market SLB on RD Current Settlement Cycle Reporting Time Commit / BTB Time Future Settlement Cycle Reporting Time Commit / BTB Time N/A Min T+0 09h00 (S) 10h00 (S) SLB BP on RD Min T+0 09h00 (S) 10h00 (S) Min T+0 09h00 (S) 10h00 (S) Same day SLB Returns (Offmarkets and BP) on RD Min T+0 (BPs) 09h00 (S) 10h00 (S) Min T+0 09h00 (S) 10h00 (S) 20

21 Agenda Introduction T+3 Timeline Overview Corporate Actions Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 21

22 22 Mandatory Events Corporate Actions

23 Mandatory Event Corporate Actions activities Action Current Timing - T+5 Future Timings - T+3 Declaration Date RD-15 RD-13 or earlier Finalization Date RD-10 RD-8 LDT RD-5 RD-3 First day to trade new entitlement RD-4 RD-2 RD RD RD Payment Date RD+1 RD+1 Settlements for new entitlements RD+1 RD+1 23

24 Mandatory Event Information The minimum required information on Declaration Date for Mandatory Events will be: Last Day to Trade (Cum), Ex Date, Record Date and Expected Pay Date Cash Rates and Share Ratios can be announced no later than Finalisation Date by 12h00 Exceptions to this will be dealt with on a case by case basis If applicable (Mandatory Security or Mandatory Cash and Security): Delisting Date/Termination Date, Suspension Date, Effective Date New ISIN Should not all information have been made available on Declaration Date then the cut off date for the Event Finalisation should be no later than 12h00 on Finalisation Date Exceptions to this will be dealt with on a case by case basis Record Date will always be a Friday. In the event of a Public Holiday, Record Date will be the previous business day 24

25 25 Elective Event Corporate Action cycle

26 Elective Event Corporate Actions activities Action Current Timing - T+5 Future Timings - T+3 Declaration Date RD-15 RD-13 or earlier Finalization Date RD-10 RD-8 LDT RD-5 RD-3 First day to trade new entitlement RD-4 RD-2 Election RD (13h00) RD (13h00) RD RD RD Payment Date RD+1 RD+1 Settlements for new entitlements RD+1 RD+1 26

27 Elective Event Information The minimum required information on Declaration Date for Elective Events will be: Last Day to Trade (Cum), Ex-Date, Record Date, Election Deadline Date and Expected Pay Date Cash Rates and Share Ratios can be announced no later than 12h00 on Finalisation Date Default Option and whether Part Elections and/or Restrictions are applicable Elections will be sent to Strate by the CSDPs at 13h00 with possible amendments being submitted up until 14h00. CSDPs and brokers will update their client mandates to ensure that they receive their clients elections timeously to align to these agreed timelines Amended elections will only be allowed in the event that the JSE s fail trade procedures affect elections Strate to forward Election Instructions to Transfer Secretary at 15h00 27

28 28 Warrants delisting on expiry

29 Warrants delisting on expiry event Information The minimum required information on warrants delisting on expiry will be: Preliminary Notice of the Event (PNOE) is sent out on RD 11 (LDT 8) Expiry Date is on Last Day to Trade Cash and Share Ratios to be announced by 12h00 on LDT + 1 to cater for entitlement trades Final Notice of the Event (FNOE) is sent out on LDT + 1 Withdrawal Date is RD

30 30 Warrants delisting on Breach of Barrier

31 Warrants delisting on Breach of Barrier The minimum required information on warrants where the underlying security breaches the barrier level will be: Notification of the Barrier Breach must be made no later than 17h00 on Last Day to Trade / Expiry Date. As an exception, if notification is made after 17h00 then the next Business Day is Last Day to Trade / Expiry Date Preliminary Notice of the Event (PNOE) is sent out on day of Breach or next Business Day Expiry Date is on Last Day to Trade Final Notice of the Event (FNOE) is sent out on LDT + 1 Payment / Withdrawal Date is RD

32 32 Share Installments

33 Share Installments effects of the underlying securities Share Instalment Warrants to follow the same timeline as that of the Underlying Security: Declaration Date must be made no later than two days after the Declaration Date of the Underlying Security Share Instalment Issuers to implement consistent processes i.e. Terms of Warrants are changed by some Warrant Issuers whilst others process a normal Equity Corporate Action Event e.g. Consolidations SWIFT Code will be the same code as utilised for the event on the Underlying Security 33

34 34 Share Installments Delisting on Breach of Barrier

35 Share Installments Delisting on Breach of Barrier Notification of the Barrier Breach must be made no later than 17h00 on Last Day to Trade / Expiry Date. As an exception, if notification is made after 17h00 then the next Business Day is Last Day to Trade / Expiry Date Preliminary Notice of the Event (PNOE) is sent out on day of Breach or next Business Day Expiry Date is on Last Day to Trade Final Notice of the Event (FNOE) is sent out on LDT + 1 Cash rates and rebates must be announced on LDT + 1 by 12h00. Exceptions will be dealt with on a case by case basis Payment / Withdrawal Date is RD + 1. Rebates payable on this date 35

36 36 Share Installments Expiry / Roll-over

37 Share Installments Expiry / Roll-over Preliminary Notice of the Event (PNOE) is sent out on RD 11 (LDT 8) JSE to announce new ISIN for Warrant Rollovers on RD - 7 Expiry Date is on Last Day to Trade Final Notice of the Event (FNOE) is sent out on LDT + 1 Cash Rates and Share Ratios must be announced by 12h00 on LDT + 1 Final Notice of Event (FNOE) will be sent as soon as ratios and rates are announced Exceptions will be dealt with on a case by case basis Payment / Withdrawal Date is RD

38 Agenda Introduction T+3 Timeline Overview Corporate Actions Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 38

39 T T + 1 T + 2 T + 3 (S) BDA Timelines Allocations Real-time Trade Release Same Day Allocations Allocation Uploads Deal Uploads Deal Adjustments Next Day Allocations Deal Uploads Deal Adjustments and re-allocations Voluntary Reverse Substitution 16h00 Compulsory Reverse Substitution of NC deals if uncommitted and CC sales if uncovered Settlement of CC Purchases Settlement of NC Deals Reimbursement from JSET for CC Purchases EOD Batch Release EOD Reverse Substitution of NC deals if CSDP not verified EOD Settlement of CC Sales Sale Proceeds Transfer Instruction BDA Netting Settlement Funding Instruction 39

40 LDT LDT + 1 LDT + 2 RD (LDT + 3) RD + 1 BDA Corporate Action Timelines (Elective) Last Date to trade Normally a Tuesday First day to trade with new entitlement Elections Record Date Normally a Friday Paydate Ex-dividend date Final Elections Elections 09h30 Election cut-off time MT565 messages sent 40

41 LDT LDT + 1 LDT + 2 RD (LDT + 3) RD + 1 BDA Corporate Action Timelines (Mandatory) Last Date to trade Normally a Tuesday First day to trade with new entitlement Record Date Normally a Friday Paydate Ex-dividend date 41

42 Agenda Introduction T+3 Timeline Overview Corporate Actions Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 42

43 Securities and Funds Availability Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 43

44 Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 44

45 Securities and Funds Availability Proprietary Accounts Report Only trades first followed by Main Board trades Allocation of Funds in descending order of Value Allocation of Purchase in descending order of Quantity Controlled and BOA Accounts Funds and Securities allocated in Account, Instrument, Age Date and Deal-ID sequence Freed Purchases on Controlled accounts will be deemed to have sufficient funds. If freeing is reversed, update messages will be sent to ECS at EOD T and T + 1 Funds from a sale not settling in Rands (RANDFOREIGN-IND = Y ) are excluded from the calculation for availability of funds for any day No SFA will be sent for allocations on Prime Broking Accounts (controlled account), but the quantity and amount on these Prime Broker deals will be considered in calculating SFA on other allocations done on that specific account (for non-prime broker deals only). 45

46 Securities and Funds Availability (cont.) DA Accounts - the allocation logic is the same as other proprietary accounts except it is not applied if the position on the account per settlement date and instrument comes to Zero. SFA is calculated daily for every allocation sent to ECS, but messages are only sent on Controlled accounts if the SFA value (Yes or No) has changed since the previous day. On the first day of an allocation, SFAs will always be sent as part of the EOD batch process. For Proprietary accounts, the SFA available value is only sent to ECS at EOD T + 1 (ALL) and EOD T + 2 (Only Sales) in a T + 3 settlement cycle. If only partial funds or securities are available : For Controlled accounts, the SFA flag will be NO with no value or quantity For Proprietary accounts the SFA flag will be YES with the Available Quantity (for Sale) or Amount (for Purchases) reflected on the message 46 For BOA accounts the SFA flag will be NO on with the Available Quantity (for Sale) or Amount (for Purchases) reflected as ZERO on the message.

47 Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 47

48 Timings of the SFA messages Timings of the SFA messages Day T Only Controlled Accounts (All) (BDA0007) SFA Message T+1 Controlled Accounts (Deltas) Proprietary Accounts (All) (BDA0007) T+2 Controlled Accounts (Delta) (BDA009C at 16:00 before REVSUB) intraday Proprietary Accounts (BDA009P after REVSUB for sales on instruments that were Reverse Substituted) T+2 EOD Proprietary Accounts (BDA) (BDA0007 to ECS for Sales only) 48

49 Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 49

50 Funds Availability Controlled Account Purchases Funds Availability Controlled Account Purchases BDA includes Prime accounts however; the details sent to ECS will be for the non-controlled leg. The Availability of Securities calculation is performed prior to Availability of Funds to determine which proceeds from future sales can be included in the Availability of Funds calculation. When the aggregated funds available is positive, purchase allocations are flagged as having available funds to settle, and funds are carried over to the following settlement dates until funds are depleted. If the aggregated available funds is negative, remaining purchase allocations are flagged as having insufficient funds available for settlement. This is repeated for each business day. The following transactions are included in the daily analysis: All transactions with an impact on available Trading or Income balance codes Any selection (increase available funds) or de-selection (reduce available funds) of corporate action cash dividends due to an account Once the calculation has been completed, available funds are applied to open unfreed purchases in instrument, age date and deal-id sequence. 50

51 Funds Availability Controlled Account Purchases (cont.) Cash BDA checks what cash, including income, is available or will become available, which is not being used for the settlement of another purchase. Funds will become available from the settlement of sales where securities are available and settlement will occur on or before the settlement of the purchase The following sales are not included in the calculation: Report-Only sales not settling in Rands (RANDFOREIGN-IND = Y ) for any day, Sales in any other financial instrument other than listed equities (e.g. Bonds, Krugerrands etc.) Sales with insufficient securities to honour the sale unless the purchase covers sales; Sales where funds have already been used in the availability of funds calculations for other purchases settling on or before the settlement of this purchase. 51

52 Funds Availability Controlled Account Purchases (cont.) Corporate Actions Corporate Action cash dividends due on or before the settlement of the purchase are taken into account. Frozen positions for the following Process Types will be included: CP and CR (Capital Repayment) IG (Interest on Gilts (Bonds)) IL (Liquidation/illiquid Dividend) IS (Special Dividend) CD (Cash Div) IT (Interest Div) up to value NOT re-invested per entitlement s drip option (R all re-invested (so 0 due) or D Elect how much re-invested (so limit to Total Due min Reinvested Value as per ENDRP on BDA)) or full value if not a Drip option, OL (Odd Lots) funds available increased when Sell elected (using SELL PRICE) and when OL Buy elected, funds available decreased (using BUY PRICE) TU (funds available reduced with Take-Up Price if securities selected (OPTN-CDE = T ) NA (New Issues) are specifically excluded 52

53 Funds Availability Controlled Account Purchases (cont.) Corporate Actions cont. The only tax implication that is considered is the Withholding Tax, as loaded on the Entitlements Header for an entitlement loaded. No other tax field considered (e.g. Foreign-Tax, SA RES Rebate, STC Credit) Only Controlled Accounts attract Tax, Proprietary Accounts and BOA accounts do not. BDA does not check to see if an account is exempt from Tax. Only frozen positions where the Corporate Action s PAY-DTE loaded is before or on the settlement date of the purchase being considered, will be take into consideration. Cash from the entitlement is only considered if the rate was confirmed and if the pay date falls on or before the settlement date of the purchase. 53

54 Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 54

55 Securities Availability Controlled Account Sales At EOD T, BDA0007 messages are sent providing the availability of securities. If the securities available quantity changes, for example if more securities become available through return of collateral, release of pledge, Securities Dematerialized or Loan Repaid, BDA will send an update message (the Delta) to ECS, but only at EOD T + 1 for the allocations where availability changed. BDA checks what securities will become available from the settlement of purchases (freed or unfreed), settling on or before (purchase cannot settle after the settlement of the sale) the settlement date of the sale and which are not being used to cover another sale. BDA checks what securities are available on the controlled account which are not being used for the settlement of another sale (to reduce securities available for all sales) settling on or before the settlement of the sale allocation in question; BDA checks for pending SLBs (not yet confirmed) for the same securities which may be used for the sale if set to be confirmed on or before the settle date of the sale in question; 55

56 Securities Availability Controlled Account Sales (cont.) BDA checks for confirmed external Collateral entries provided as collateral for the same securities which may be used for the sale, if set to be returned on or before the settle date of the sale in question; BDA checks for securities corporate action entitlements due to the client s account on or before the settlement of the sale which is not being used to cover another sale. Corporate action events that are considered are: 'CI', 'SC', 'RT', 'TU', 'SD', 'CO', 'CV', 'NC', 'UB' and 'OL'. The calculation for available securities will not include any securities out on collateral or pledged. Before the compulsory reverse substitution run on T+2 (16h00), another message (BDA0009C) will send any changes to the availability of securities on controlled account sales to ECS 56

57 Securities Availability Controlled Account Sales (cont.) Securities Availability before Controlled Account Sales Reverse Substitution BDA0009C s are created for any movement of securities available on controlled account sale allocations (Note: BOA accounts excluded). The intra-day SFA process is run just before compulsory reverse substitution (16h00) on T + 2. The exact timing of when the job will run is specified by the JSE Settlement Authority. BDA will advise the quantity of securities available for the settlement of the sale just before compulsory reverse substitution is due to be run. If there are insufficient securities the deal will be compulsory reverse substituted at 16h00 on T+2 by ECS. 57

58 Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 58

59 Funds Availability Proprietary Account Purchases At EOD on T + 1 and T + 2 in a T3 settlement cycle, a BDA0007 message is sent providing the availability of funds to ECS. BDA does not send deltas for Proprietary account deals. BDA checks to see what funds will become available from the settlement of sales on ALL proprietary accounts combined (excluding BOA accounts), where securities are available (in electronic float), which are settling on (sale cannot settle before or after the settlement of the purchase, it has to be on the same day) the settlement date of the purchase. The following sales are not included in the calculation: Sales not settling in Rands (RANDFOREIGN-IND = Y ); Proceeds from any other financial instrument other than electronically settled listed equities; Sales where there are insufficient securities in electronic float to honour the sale; Sales not settling on the same date as the purchase allocation being checked; 59

60 Funds Availability Proprietary Account Purchases (cont.) The following BDA account types are considered Proprietary for purposes of SFA s: CL, D, DA, LB, LK, LP, PT, QD, RS and S (specifically excluding BOA accounts as SFAs are different). Sales on proprietary accounts include Mainboard and Report-Only sales. For proprietary purchases (excluding BOA), partial cover of funds is considered. The amount available is reflected on the message to ECS. BDA considers corporate action cash dividends due to Proprietary accounts excluding BOA accounts for the following events: CD, CP, CR, IG, IL, IS, and IT, OL and TU. Dividends due are only considered if due on or before the purchase settlement date and not used to cover another purchase. Proprietary accounts are exempt from tax on cash dividends. Availability of funds from BDA to ECS will be done ONLY at EOD T+1 and EOD T+2. For BOA accounts, BDA will include the full Quantity available for settlement but if only part is available then the quantity will reflect Zero as the partial quantity will not be taken into account. 60

61 Agenda: Securities and Funds Availability General Notes Timing Funds Availability Controlled Accounts Securities Availability Controlled Accounts Funds Availability Proprietary Accounts Securities Availability Proprietary Accounts 61

62 Securities Availability Proprietary Account Sales On T, ECS will have all Proprietary allocations covered. Only from T+1 EOD batch will BDA send SFA with actual Qty covered for Proprietary allocations. BDA checks to see what securities will become available from the settlement of purchases which are settling on or before (purchase cannot settle after the settlement of the sale) the settlement date of the sale and are not being used to cover another sale. Purchases on proprietary accounts include purchases done on Report-Only terms, whether settling in Rands or not (RANDFOREIGN-IND = Y ) and purchases done on the Mainboard. BDA checks to see what securities are available on the proprietary accounts which are not being used for the settlement of another sale (reduced with all sales) settling on or before the settlement of the sale in question; 62

63 Securities Availability Proprietary Account Sales (cont.) BDA checks for pending SLBs on an account type LB borrower, for the same securities which may be used for the sale; In addition, external Collateral on account-type LB set to be returned on or before the sale settles is included. BDA will consider corporate action securities entitlements due for the following events: 'CI', 'SC', 'RT', 'TU', 'SD', 'CO', 'CV', 'NC', 'UB' and 'OL', which are due to the proprietary accounts on or before the settlement of the sale which are not being used to cover another sale; Calculation of available securities will not include any securities that are pledged. For proprietary sales, partial cover of securities is considered. The quantity available is reflected on the message to ECS. For BOA accounts, BDA will include the full Quantity available for settlement but if only part is available then the quantity will reflect Zero as the partial quantity will not be taken into account. 63

64 Agenda Introduction T+3 Timeline Overview Corporate Actions Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 64

65 Finality of commit and settlement in a T+3 settlement cycle For non-controlled clients, JSE looks to CSDPs to commit If committed by EOD T+1 no margin CSDP can still lift their commit until 16h00 on T+2, subject to: Curatorship and Liquidation of the client provisional or final Commit becomes final and irrevocable at 16h00 on T+2 65

66 Potential Issues in the move to T+3 Three potentially major issues - which are interlinked - need to be addressed with the go-live of T+3 : Margin EOD T+1 specifically around non-controlled clients commits pull on broker capital. Margin for proprietary and controlled clients will not change except from a timing perspective Fails Management from EOD T+2 Holding margin for the Fails Management extended pull on brokers capital 66

67 Margin under T+3 Under T+3 settlement the JSE will margin at EOD T+1 (collected on morning of T+2 respectively) meaning that based on current behaviour, 35 to 40% of trades will be margined (figures dependent on how market practice will adjust) Margin will be retained in the case of Fails Management and returned on final settlement of the transaction: Rolling of Settlement Retransactions Compensation A change of behaviour execution of commits by EOD T1 - is required to avoid excessive margin obligations 67

68 Changes in practice JSE has moved to real-time systems members may do allocations on a realtime basis on T and commits to flow on T currently 4% of trades are being committed on T. Market practice will change Investors will send instructions and CSDPs will commit on T or T+1 Per JSE Rules and Directives brokers can claim margin from clients included in the settlement obligations 68

69 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 05/03 07/03 09/03 11/03 01/03 03/03 Commits statistics Average Monthly Commits Non-controlled Clients 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Percentage committed EOD T+1 Percentage committed EOD T+2 Percentage EOD T+3 EOD T+1 EOD T+2 EOD T+3 69 Note: 65% committed 85% committed 99% committed

70 Changing behaviour actions to be taken JSE BROKERS CSDPS JSE Action required JSE to analyse data per broker / per CSDP Brokers to analyse data CSDPs to analyse data Meeting with buy-side Cape Town Expected outcomes Meet with brokers / CSDPs to discuss the analysis results Share data with respective brokers / CSDPs Review the data to determine a breakdown per client Goldman Sachs / JP Morgan etc. Submit client groupings back to the JSE Review the data to determine a breakdown per client Goldman Sachs / JP Morgan etc. Submit client groupings back to the JSE Workshop in Cape Town 29 October 2015 One on one meetings in Cape Town 30 October 2015 (where biggest impact) 70

71 Changing behaviour actions to be taken (cont.) JSE JSE JSE Action required Meeting with buy-side Johannesburg Meeting with London based clients Work with brokers and CSDPs to motivate clients based in other countries Expected outcomes Workshop in Johannesburg November 2015 One-on-one meetings in Johannesburg (where biggest impact) JSE to set up meetings with London-based clients (where biggest impact) in November 2015 Videoconferences Teleconferences Visits to clients (where biggest impact) EXPECTED CHANGE IN CLIENTS BEHAVIOUR FEB 16 80% commit by end T+1 MAR 16 90% commit by end T+1 APR 16 95% commit by end T+1 71

72 Latest statistics EOD T = 4% EOD T+1 = 80% EOD T+2 = 92% EOD T+3 = 99% 72

73 Agenda Introduction T+3 Timeline Overview Corporate Actions Timeline Overview BDA Timeline Overview BDA - Explanation of how the calculation of SFA's work Margins in a T+3 Environment Automations in the BDA system 73

74 BDA T+3 Functionality Recap Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 74

75 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 75

76 BDA T+3 Functionality Recap - Allocations Trading System BDA DIRAL RTREL DLDIR/DLEXT Current Allocation Process DLDIR/DLEXT Direct Deals and Deal Extensions at Actual Price SDALL Allocation at Average Price BDA Batch Real-time Release Real-time Implementation 76

77 Current Allocation Process Trading System BDA TRADS Uploaded Allocations Manual Extensions DLEXT Extension DIRAL E/D Deal Direct DLDIR Manual Allocations Trade Day BDA Batch Batch Deal Posted Batch Contract Note Next Day 77

78 Real-time Allocations at Actual Price Trading System BDA TRADS Uploaded Allocations (Priced) Manual Extensions Extension DIRAL E/D Deal Direct Manual Allocations DLEXT DLDIR RTREL Posted Deal Real-time Contract Notes Trade Day 78

79 Real-time Allocations at Average Price Deal Management Real Time Allocation Process Trading System Uploaded Allocations (Zero Price) Average BDA Actual BDA Batch Price DIRAL Uploaded Allocations (Priced) RTREL Release Market Trades to Allocation Account RTREL SDALL Allocate at Average Price and Implement Deal Posted Real-time Contract Note Trade Day 79

80 Trade Release Monitoring Screens RTMON Real-time Release Monitoring Status TRELT Trades Released Today 80

81 New and Enhanced Enquiry Screens ALDLS Open Deals on Allocation Accounts RTNTE Real-time Note Display PRAVP Post Release Average Price Summary TRADS Online Trades Display DCLOP New Deals Opened 81

82 Contract Notes Contract Notes: Contracts notes will be created each time a trade/or trades are released Real-time contract notes will be placed on the FTP & IDP server Real-time Swift MT515 contract notes will also be created 82

83 DIRAL - Trade Account Amendment DIRAL - Trade Account Amendment: An A in the Function field allows you to change the Trade Account to another stock or allocation account OPTN:DIRAL BCS/A:ONLINE TRADES - SUMMARY 06FEB13 14:22:02 ACTN: JSE A30 SHARE : VOD VODACOM GROUP LTD ACCOUNT: TRADES.: A (A=ALL, F=FULLY ALLOC, P=PART ALLOC, U=UNALLOC) P QTY QTY QTY P RF R F S TRADED EXTENDED DIRECT SHR PRICE A TM I ACCOUNT NAME A P 300 VOD A SMIT AW _ P ******300 AVG VOD *** A SMIT AW PF1 HLP PF4 DLDIR PF5 DLEXT PF6 TRADS PF8 NEXT PF11 --> PF12 83

84 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 84

85 Automated Deal Upload Process Deal Management Real Time Allocation Process Automated Deal Upload DLSUPL Real-Time Transaction Code BP Data Set BBAP.SPRD.UPLOAD.XXX.DLSUPL BDA Trade Day or Next Day BDA Real-Time Deal Posted Real-Time Contract Note 85

86 Automated Same Day Allocation Upload Process Deal Management Real Time Allocation Process Automated Same Day Allocations SDAYUP Transaction Code BD Data Set BBAP.SPRD.UPLOAD.XXX.SDAYUP Trading System BDA RTREL Release Market Trades to Allocation Account SDALL Allocate at Average Price and Implement Trade Day Deal Posted Real-time Contract Note 86

87 Automated Allocation Upload Process Trading System BDA TRADS New Automated Upload ALLUPO New File Layout Updated in Batch Transaction Code BD Data Set BBAP.SPRD.UPLOAD.XXX.ALLUPO Manual Extensions DLEXT Extension DIRAL E/D Deal Direct DLDIR Manual Allocations Trade Day Batch BDA Batch Deal Posted Batch Contract Note Next Day 87

88 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 88

89 Securities and Funds Availability Securities and Funds Availability Two new enquiry panels have been added to BDA to provide you with a view of deals that either have insufficient shares or insufficient funds to cover the deal Insufficient Shares for Sales Insufficient Funds for Purchases 89

90 Insufficient Shares for Sales Insufficient Shares for Sales Proprietary and Controlled Client accounts are reflected on the Insufficient Shares on Sales screen You will be able to filter the data using the following parameters: Proprietary or Controlled View Settlement date Ascending or Descending sequence of Settlement date Instrument Alpha and Version Branch Partner Account code 90

91 Securities and Funds Availability OPTN: SFAEQ BCS/A: SFA ENQUIRY 22MAY14 11:14:30 ACTN: 530:ENTER SELECTION CRITERIA SPR 243 BATCH DATE ACC TYPE (B,C,P) P/S INDICATOR SOURCE (B,I) : : _ : _ : _ F1 HELP F2 RETURN F4 MAIN MENU F5 TABLES F9 LIST BAL. F12 QUIT 91

92 Securities and Funds Availability (cont.) OPTN: SSFAE INSUFFICIENT SHARES 22MAY14 11:26:19 ACTN: JSE 243 P/C : _ SET DTE : SEQ : _ INSTRUMENT : ACC CDE : TOTAL SHORT : S SET DTE SHARE ACC CDE SALE QTY DEAL-ID SHORT DEMAT BORROW FREE 1 HELP 2 RETURN 4 MENU 7/8 UP/DN 9 DTLS 10 DLLNS 12 QUIT 92

93 Securities and Funds Availability (cont.) OPTN: SSFAE INSUFFICIENT SHARES 22MAY14 11:26:19 ACTN: JSE 243 ENT DUE PAPER ACCOUNT NAME BRN PAR 1 HELP 2 RETURN 4 MENU 7/8 UP/DN 9 DTLS 10 DLLNS 12 QUIT 93

94 Securities and Funds Availability (cont.) OPTN: FSFAE BCS/A: SFA - INSUFFICIENT FUNDS 22MAY14 11:14:30 ACTN: 530:ENTER SELECTION CRITERIA SPR 243 SETTLEMENT DATE : SEQUENCE OF SETTLEMENT DATE : _ INSTRUMENT : BRANCH : PARTNER : ACCOUNT CODE : F1 HELP F2 RETURN F4 MAIN MENU F5 TABLES F9 LIST BAL. F12 QUIT 94

95 Securities and Funds Availability (cont.) OPTN: FSFAE INSUFFICIENT FUNDS 22MAY14 11:26:19 ACTN: JSE 243 SET DTE : SEQ : _ INSTRUMENT : ACC CDE : TOTAL SHORT : SET DTE SHARE ACC CDE DEAL AMT SHORT JSET CASH BAL INCOME BAL FUT BAL 1 HELP 2 RETURN 4 MENU 7/8 UP/DN 9 DTLS 10 DLLNS 12 QUIT 95

96 Securities and Funds Availability (cont.) OPTN: FSFAE INSUFFICIENT FUNDS 22MAY14 11:26:19 ACTN: JSE 243 MONEY MARKET ACCOUNT NAME BRN PAR 1 HELP 2 RETURN 4 MENU 7/8 UP/DN 9 DTLS 10 DLLNS 12 QUIT 96 1 HELP 2 RETURN 4 MENU 7/8 UP/DN 9 DTLS 10 DLLNS 12 QUIT

97 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 97

98 Prime Broking Automatic loading of the Prime Brokers CSDP details when the Prime Brokers code is entered The processing of the trades between the Executing Broker and the Prime Broker The settlement of the executed trades in both the Executing Broker and Prime Brokers books Automation of reversals by the Executing broker prior to settlement Appropriate Corporation Action processing 98

99 99 Prime Broking

100 Prime Broking Account Loadings Executing Broker Non-controlled Account Auto population of 4 th panel CSDP details Prime Broker Controlled Account No change 100

101 Prime Broking Account Verification Prime Broker Controlled Account Verify Account as a Prime Account - PBACV Executing Broker Non-controlled Account View status of Accounts - EBENQ 101

102 Prime Broking Trades Executing Broker Non-controlled Account Trade as usual Prime Broker Controlled Account Trade replicated for settlement purposes 102

103 103 Prime Broking

104 104 Prime Broking

105 Prime Broking New Account Type The new Balancing account will have an Account Type Code of PB and its own General Ledger Control account. This information is available on the online screen T.ACT. New Account The new Prime Broking Balancing Account will be automatically loaded for all brokers as part of the standard maintenance of BDA. This account will be of the new Account Type PB and will have the account number New Transaction Codes New Prime Broking Transaction Codes have been added to the T.TRA table: AP PRIME BROKING ADJUSTMENT RP PRIME BROKING REVERSAL PD PRIME BROKING DEAL 105

106 Prime Broking Contract Notes Contract notes will be produced as normal for the Non-controlled account trades Contract notes will not be produced for the deal created on the Prime Account in the Prime Brokers records. This is essentially a duplicate trade and not another new contract Charges None of the charges associated with the trade such as Brokerage, IPL, STT, VAT etc. will be posted to the general ledger in the Prime Brokers books The full settlement amount of the deal will settled on both the Client s Prime Account and the Prime Broking Balancing Account 106

107 Prime Broking Settlements Executing Broker Non-controlled Account Commitment by Prime Broker CSDP Settlement message received and trade settled as normal by BDA Prime Broker Controlled Account Settlement of Prime Account as Normal Settlement of Prime Broking Balancing Account initiated when Non-controlled settlement message received 107

108 108 Prime Broking

109 109 Prime Broking

110 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 110

111 CLMNT Setup Lending Desks ONLY CLMNT BCS/A: CLIENT ACCOUNT MAINTENANCE 30JUL ACTN: JSE 947 ACTION IND..: E ACCOUNT CODE: NAME: STANDARD BANK LENDING ACCOUNT MONEY MARKET INDICATOR...: MONEY MARKET MANDATE DATE..: SAFEX CODE...: SAFEX RATE CLASSIFICATION..: UNEX CODE...: WAIVE MST FOR PIC...: CLIENT INDICATOR...: CLIENT CATEGORY...: SCRIP ACCOUNT NUMBER: SLB BP ID...: ZA LENDING DESK BIC CDE: SBZAZAJ0FSL MINIMISED NOTES (Y/N)...: PF MANAGEMENT CHARGE CDE...: 00 ELECTRONIC PAY MANDATE DATE: 1 HLP 3 MEMNT 4 MAIN 5 TBLS 6 ARMNT 7 BNKAC 9 CLTM 10 LEFT 11RIGHT 12 QUIT 111

112 BDA T+3 Functionality Recap SBORU Loan Reference Create Message Borrower Message Reference Borrower Message Status SCOLU Collateral Reference Create Message Lender Message Reference Lender Message Status SBORC Collateral Type SCOLC Message/ Later Message/ Later 112

113 SWIFT Instruction Messages MT540 (RFP) Instruct Borrower s CSDP to Receive Securities free of value. Instruction Sent to Borrower s CSDP when message requested for Loan created on SBORU or returned via SBORC where no cash collateral was entered. Instruction Sent to Lender s CSDP when message requested for Collateral entry created on SCOLU or returned via SCOLC (not when lender is Lending Desk). MT541 (RVP) Instruct Borrower s CSDP to Receive Securities against payment. Instruction Sent to Borrower s CSDP when message requested for Loan created on SBORU or returned via SBORC where Cash Collateral was entered. MT542 (DFP) Instruct Lender s CSDP to Deliver Securities free of value. Instruction Sent to Lender s CSDP when message requested for Loan created on SBORU or returned via SBORC where no cash collateral entered (not when lender is Lending Desk). Instruction Sent to Borrower s CSDP when message requested for Collateral entry created on SCOLU or returned via SCOLC. MT543 (DVP) Instruct Lender s CSDP to Deliver Securities against payment. Instruction Sent to Lender s CSDP when message requested for Loan created on SBORU or returned via SBORC where Cash Collateral was entered (not when lender is Lending Desk). 113

114 SWIFT Status Intimations SWIFT Status Intimations (MT548 message) - NO MSGS No Status Intimation message received for instruction message sent - UNMATCHED (25D::MTCH//NMAT) Instruction did not find matching instruction from counterparty specified - MATCHED (25D::MTCH//MACH) Instruction matched in market to counterparty - REJECTED (25D::IPRC//REJT) Instruction was rejected by CSDP (many reasons exists) - CANCELLED (23G::CAST, not INST as for others and 25D::CPRC//CAND) Instruction was cancelled by the member - READY STL (24B::PEND//FUTU) Instruction ready to settle (Instruction can no longer be cancelled at this point) 114

115 SWIFT Settlement Confirmations SWIFT Settlement Confirmations - MT544: Confirm Receipt of Securities free of payment by CSDP (per MT540 created) - MT545: Confirm Receipt of Securities against payment by CSDP (per MT541 created) - MT546: Confirm Delivery of Securities free of payment by CSDP (per MT542 created) - MT547: Confirm Delivery of Securities against payment by CSDP (per MT543 created) 115

116 SWIFT Settlement Confirmations (cont.) Messages can be sent from SBORU and SBORC for new/return loans Messages can be sent from SCOLU and SCOLC for new/return collateral transactions OR Messages may be bulked using the new screen SLBBM 116

117 Bulk Message Updates SLBBM Securities Loan/Collateral Bulk Message Updates To bulk SWIFT Instruction messages, the BULK MSG column for items to bulk together must be updated with the same character. The SEND MSG indicator will be automatically updated to Y. Messages can only be bulked together where they have the: Same Security Same Settlement Date Same Lender Account Same Borrower Account groupings (All Controlled Clients, Prop Acc Types or Non-controlled accounts) For Loan entries: Same Collateral Type (Securities or Cash) NOTE: The Bulking indicator is NOT updated on any screen or on the database as, once the Loan/Collateral transactions are release, all messages are created at same time, based on the value entered in the BULK MSG column. 117

118 Tracking of Messages Tracking of Messages LSTAT - Status intimations 118

119 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 119

120 Corporate Action Automation Enhancements to Corporate Action Messages MT CA Event and Holding Notification MT CA Event Election MT CA Election Results Confirmation MT CA Status and Processing Advice Parameterised Cut-off Election time and Election date Election Download Enhancements to Fractional Payments and Rounding Methodology Corporate Actions Fractions Enquiry Screen Tax on Fraction Pay outs 120

121 Corporate Action Automation (cont.) Automation of MT565 message to the CSDP s In future, Brokers will be able to manually release the CA election instructions prior to the cut-off time to the CSDPs. Two new MT565 functions have been added CN565 MT565 Trigger (CTRL) PR565 MT565 Trigger (PROP) This action by the Brokers will automatically trigger the sending of the MT565 message to the CSDPs If no instruction is send, the MT565 will automatically be send to the CSDP based on the agreed market cut-off time. Brokers will be able to cancel and send new MT565 messages as replacement messages for amended CA election instructions. 121

122 Corporate Action Automation (cont.) MT 565 Trigger functions BBMMAIN BROKER DEAL ACCOUNTING 13/03/14 08:42:27 ELECTION POSITION/RESULTS 084 JSE 947 CN564 CN565 EN566 EN567 PR564 PR565 MT564 - MESSAGE ENQ(CTRL) MT565 - TRIGGER (CTRL) MT566 - MESSAGE ENQUIRY MT567 - MT565 RESPNSE MSG MT564 - MESSAGE ENQ(PROP) MT565 - TRIGGER (PROP) SYSTEM: BDA PATH COMMAND PF 1 HELP 2 REFRESH 3 RETURN 5 SELECT PARTICIPANT 122

123 Corporate Action Automation (cont.) MT 565 Statuses Status SUBMITTED TO CSDP PENDING BATCH CANCELLED REJECTED Explanation 1) Passed cut-off time for event and message has been sent to CSDP or 2) Message has been manually send to CSDP The cut-off time has not been reached Cancellation has been requested CSDP has rejected MT565 message received Member to determine the cause via the MT567 message enquiry Member to fix the error Member to re-submit the MT565 message via CN565 or PR

124 Corporate Action Automation (cont.) MT565 - Message Submission for Odd Lots As with Rights Take-ups and Scrip Dividends, the automatic send of MT565 messages to the CSDPs will now be implemented for Oddlots. It will have the same market agreed submission time. Oddlot messages may also be submitted online. NOTE: The excel spreadsheet request will continue as it contains the shareholder details which are not on the MT565 message. 124

125 Corporate Action Automation (cont.) BRHDR - Parameterise Cut-off Election Time and Date BBBRHD2 BROKER DEAL ACCOUNTING 16/07/19 15:33:42 B5V1 Entitlements Broker Header 084 JSE 947 INSTRUMENT-TYPE: E ALPHA: COMN VERS: 001 COMAIR LIMITED RD/LDR : PROCESS: TU PROCS SEQ: 010 LOCAL/FOREIGN: DIV NO : LDT: DECL DATE : DRIP/REINV: DIV RATE : PAY : RATE CONF: FRAC RATE : FRAC PAY DATE : FRAC CONF: FRAC RELEASE DATE: ROUNDING METH: STAN OLD RATIO: EX DIV DATE: RATIO CONF: Y NEW RATIO: FOREN DTE: ISSUE DTE: RATE FRMT: NEW MN QTY: ISSUE IND: LD DTE : TRANS RAND: REPL INSTR-TYPE: E ALPHA: COM VERS: 002 COMAIR LIMITED DEFAULT OPTON CODE: OPTION CODE: PROCESS DATE: BUY PRICE : SELL PRICE : EXCESS IND: N DIV GEN IND: N FREEZE IND: Y OFF.OPEN DTE: OFF.CLSG DTE: RELEASE DATE: AT HOME PROCS: N ADVICE NOTE: N CUT-OFF ELEC TME: 0930 BALANCE CODES : T (trans) T (non-trans) ELECTION DTE: DESIGNATION CODES: TU TU ISSUE PRCE: TAX INFORMATION - WITHHOLDING TAX % : SA RES REBATE % : STC CREDIT RATE : FOREIGN TAX %: DIV IN SPECIE: NARRATIVE: English TAKE UP Afrikaans REGTE OPNEEM details correct? N SYSTEM: BDA PATH COMMAND PF 1 HELP 2 REFRESH 3 RETURN 7 BACKWARD 8 FORWARD 125

126 Corporate Action Automation (cont.) MT565 - Enquiry of Online Submissions A new screen that will display the MT565 messages that have been submitted online has been added to MENUL ENTITLEMENT DATA on BDA (Not B5ACICS). 126

127 Corporate Action Automation (cont.) MENUL ENTITLEMENT DATA on BDA (Not B5ACICS) OPTN: MENUL BCS/A: ENTITLEMENT DATA 26JUL12 16:24:14 ACTN: JSE 947 OPTION DESCRIPTION ADJPR DVADD DVDUE DVHDG DVLDR DVMNT ENTDT ENTDU INTSN INTST MT565 RTDUE RTHDG RTMST RTPAR RTXTR ADJUST CORPORATE ACTION PRI UPD ADDITIONAL MASTER DATA DIVIDEND DATA BY PAY DATE UPDATE BROKER DIVIDEND MAST DIVIDEND DATA BY LDR DATE DIVIDEND USER FROZEN DTLS. ACCOUNT DTA PERCENTAGE ENTITLEMENTS DUE INTEREST FOR ACCT NAMIBIA INTEREST FOR ACCOUNT MT565 ONLINE SUBMISSIONS RIGHTS DATA BY DATE UPDATE BROKER RIGHTS MAST RIGHTS MAINTENANCE RIGHTS PARTS TABLE MAINTNC. WITHDRAWAL EX TRUSTEES PF1/13 HELP PF2/14 RETURN PF4/16 MAIN MENU PF12/24 QUIT (ONL.DTE 29JUN DB 995) 127

128 128 Corporate Action Automation (cont.)

129 Corporate Action Automation (cont.) Download of Elective Events A download of a Frozen File for an Elective Event can be requested on RPROC Process Code ELECDN 129

130 Corporate Action Automation (cont.) RPROC Browse Process Requests OPTN: RPROC BCS/A: BROWSE PROCESS REQUESTS 03JAN13 09:29:22 ACTN: AAA A81 BROKER CODE : 0001 START BROWSING FROM PROCESS CODE : PROCESS REQUEST FREQUENCY FUNC CODE NUMBER NAME CDE DAY MONTH _ EBDTRE TMS DEAL INFO EXTRACT FOR DB2 _ ECHCSH TRF ECH SURPLUS FUT.AMT TO CSH _ ECHDLY DAILY DELIVERY ITEMS FROM ECH _ ECHEXT EXTRACT OF ECH RECON BALANCES _ ECHSPL CREATE ECH DL/REC DEALS _ ELECDN CA ELECTION DOWNLOAD _ ENTBAK BACKUP ENT DISSEMINATION FILES _ ENTEQU CRTE SEQ ENT FILE EQUITIES _ ENTGLT CREATE ENT SEQ FILE GILTS _ EQAVDI POPULATE DEAL ID ON AVG SUM _ EQUDIR CALCULATES AVERAGE PRICES _ EQUEDT EDIT EQUITY INPUT _ EQUSPL SPLIT EQUITY DEALS _ ERDSEQ WRITES REMOTE INFO TO SEQ FILE _ ETCNOT CREATE ETC CONTRACT NOTE MSG _ ETRLMF EXTRACT FOR REPORT PTRLMF PF1/13 HELP PF2/14 RETURN PF4/16 MAIN MENU PF7/19 PREV PF8/20 NXT PF12/24 QUIT 130

131 Corporate Action Automation (cont.) ELECDN Broker Election Download OPTN: RPROC BCS/A: UPDATE PROCESS REQUEST 03JAN13 09:35:2 ACTN: AAA A81 PROCESS : ELECDN BROKER ELECTION DOWNLOAD REQUEST: 001 RUN FREQUENCY : _ RUN DAY: QUARTER/HALFYEAR START MONTH: ONLINE / BATCH : ONLINE REQUEST PROCESSING PARAMETERS NAME VALUE INSTRUMENT ALPHA INSTRUMENT VERSION PROCESS TYPE PROCESS SEQ RECORD DATE REQUEST OUTPUT DESTINATION(s): LOCAL COPIES : 01 FORM : STAD PF1/13 HELP PF2/14 RETURN PF4/16 MAIN MENU PF5 PRINTERS PF12/24 QUIT Mandatory fields 131

132 Corporate Action Automation (cont.) Fractional Payments and Rounding Methodology Currently when fractions have to be processed, it is done manually by the BDA support team. The change is to automate this process within the JSE end to end i.e. from the JSE internal Reference Data System (RDS) to BDA. A number of fields have been added to the Broker Header Screen on B5ACICS. 132

133 Corporate Action Automation (cont.) BRHDR Entitlements Broker Header BBBRHD2 BROKER DEAL ACCOUNTING 13/03/15 15:33:42 B5V1 Entitlements Broker Header 084 JSE 947 INSTRUMENT-TYPE: ALPHA: VERS: RD/LDR : PROCESS: PROCS SEQ: LOCAL/FOREIGN: DIV NO : LDT: DECL DATE : DRIP/REINV: DIV RATE : PAY : RATE CONF: FRAC RATE : FRAC PAY DATE : FRAC CONF: FRAC RELEASE DATE: ROUNDING METH: DIST OLD RATIO: EX DIV DATE: RATIO CONF: NEW RATIO: FOREN DTE: ISSUE DTE: RATE FRMT: NEW MN QTY: ISSUE IND: LD DTE : TRANS RAND: REPL INSTR-TYPE: ALPHA: VERS: DEFAULT OPTON CODE: OPTION CODE: PROCESS DATE: BUY PRICE : SELL PRICE : EXCESS IND: N DIV GEN IND: N FREEZE IND: Y OFF.OPEN DTE: OFF.CLSG DTE: RELEASE DATE: AT HOME PROCS: N ADVICE NOTE: N CUT-OFF ELEC TME: 1200 BALANCE CODES : T (trans) T (non-trans) ELECTION DTE: DESIGNATION CODES: ISSUE PRCE: TAX INFORMATION - WITHHOLDING TAX % : SA RES REBATE % : STC CREDIT RATE : FOREIGN TAX %: DIV IN SPECIE: NARRATIVE: English TAKE UP Afrikaans REGTE OPNEEM details correct? N SYSTEM: BDA PATH COMMAND PF 1 HELP 2 REFRESH 3 RETURN 7 BACKWARD 8 FORWARD 133

134 Corporate Action Automation (cont.) Fractional Payments and Rounding Methodology ENTFR Entitlements Fraction Enquiry As part of the processing of fraction payouts, a new corporate action fractions Enquiry Screen ENTFR (ENTITLEMENTS FRACTION ENQUIRY) has been created (MENUL) which will have data populated at EOD on Record Date. 134

135 Corporate Action Automation (cont.) ENTFT Entitlements Fractions Enquiry OPTN: ENTFR BCS/A: ENTITLEMENTS FRACTIONS ENQUIRY :55:27 ACTN: JSE 947 INSTR TYP : E ALPHA : EPS VERS: 0 PROC TYPE : UB RD/LDR : REPL ALPHA: ESPIBX REPL VERS: 0 MINIMUM THRESHOLD : 20 LDT : FRACTION REL DATE : PROCS SEQ : 10 FRACTION PAY DATE : OLD RATIO : FRACTION RATE : NEW RATIO : ROUNDING METHODOLOGY: DIST FRACTION CONF: Y ACCOUNT LOC REG QTY ENTITLEMENT FRACTION R AMOUNT SCR DM DM DM DM DM DM DM DM DM SYSTEM: BDA PATH COMMAND PF 1 HELP 2 REFRESH 3 RETURN 7 BACKWARD 8 FORWARD 135

136 Corporate Action Automation (cont.) Tax on Fraction Payouts Although RDS is not set up to send any amendments of data post LDT, the fields which would trigger the process of processing tax for fractions in BDA may be manually updated by the BDA Support Team. The following data will be manually entered by the BDA Support Team until the RDS changes have been catered for: Dividend Rate Foreign tax percentage STC Credit rate Dividend in Specie Withholding tax percent 136

137 Corporate Action Automation (cont.) Enhancements to Corporate Action Messages MT CA Event and Holding Notification Strate MT CA Event Election Trigger and Cancel functionality MT CA Election Results Confirmation No change MT CA Status and Processing Advice New intimations Parameterised Cut-off Election time and Election date 137

138 Corporate Action Automation (cont.) Enhancements to Fractional Payments and Rounding Methodology BRHDR on B5ACICS Corporate Actions Fractions Enquiry Screen Tax on Fraction Payouts 138

139 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 139

140 Account Transfers & Portfolio Moves Internal Account Transfers One or many dematerialised instruments transferred from one account to another within the same member External Account Transfers One or many dematerialised instruments transferred from an account at one member to an account at another member or to a non-controlled account Portfolio Transfers All dematerialised instruments in one or many accounts transferred from one member to another or to non-controlled accounts 140

141 Account Transfers & Portfolio Moves (cont.) Transaction Codes (T.TRA) Each transfer type has a separate transaction code to make it easily identifiable: I1 Internal Acc Trf Delivery - will decrease controlled client holding I2 Internal Acc Trf Receipt - will increase controlled client holding E1 External Acc Trf Delivery - will decrease controlled client holding E2 External Acc Trf Receipt - will increase controlled client holding P1 Portfolio Move Delivery - will decrease controlled client holding P2 Portfolio Move Receipt - will increase controlled client holding Dissemination Transaction Codes will be disseminated in Card Code

142 Account Transfers & Portfolio Moves (cont.) User Access User access must be given to the appropriate users via the SECFN function Select and Deliver functionality must not be given to the same user in order to ensure segregation of duties. 142

143 Account Transfers & Portfolio Moves (cont.) The following access should be given: Selector: ATSEL ATENQ ATDET PMSEL PMENQ PMDET Authoriser: ATDLV ATENQ ATDET PMDLV PMENQ PMDET Receiver: ATREC ATENQ ATDET PMREC PMENQ PMDET ACCOUNT TRANSFERS SELECTION ACCOUNT TRANSFER ENQUIRY ACCOUNT TRANSFER DETAIL REC (PF9) PORTFOLIO MOVES SELECTION PORTFOLIO MOVE ENQUIRY PORTFOLIO MOVE DETAIL REC (PF9) ACCOUNT TRANSFERS DELIVERY ACCOUNT TRANSFER ENQUIRY ACCOUNT TRANSFER DETAIL REC (PF9) PORTFOLIO MOVES DELIVERY PORTFOLIO MOVE ENQUIRY PORTFOLIO MOVE DETAIL REC (PF9) ACCOUNT TRANSFER RECEIVED ACCOUNT TRANSFER ENQUIRY ACCOUNT TRANSFER DETAIL REC (PF9) PORTFOLIO MOVE RECEIVED PORTFOLIO MOVE ENQUIRY PORTFOLIO MOVE DETAIL REC (PF9) 143

144 Account Transfers & Portfolio Moves (cont.) General For audit purposes BDA will record the Date, Time and User ID of: The user who created the Deliver instruction on the Delivering Brokers side The user who authorised the Deliver instruction on the Delivering Brokers side the user who accepts Receipt of the transfer on the Receiving Brokers side The Receiving Broker is able to adjust Portfolio Costs of holdings being received Funds are not included in the Account Transfers and Portfolio Moves functionality 144

145 Account Transfers & Portfolio Moves (cont.) Available Dematerialised Holdings Only settled dematerialised positions may be eligible for transfer. BDA will perform the same check as is currently done for Client Pledge to determine dematerialised holdings available for transfer. Shares that are excluded from any move are: Shares that are required to settle open sales Shares that are needed to settle Loans or Collateral transactions Pledged Shares NOTE: Controlled client purchases can only be transferred once settlement has occurred, which in a T+3 environment will be intraday on T+3 145

146 Account Transfers & Portfolio Moves (cont.) Corporate Actions Securities may be transferred on any day The cut off time for Account Transfers and Portfolio moves on Record Day is 09h00. If a CSDP has not actioned the transfer by 10am they will reject it. 146

147 Account Transfers & Portfolio Moves (cont.) Non-controlled Accounts When a Non-controlled account is receiving the shares, BDA will show the positions that are being transferred but once the transfer has been accepted by the receiving party the positions will not be opened on the Non-controlled account as the broker will not be holding the shares. 147

148 Account Transfers & Portfolio Moves (cont.) The new screens have been added to MENUV on BDA s main menu, which is accessed by pressing (PF8) on the Main Menu. OPTN: MAIN BCS/A: MAIN MENU (BROKER) 16SEP15 08:59:31 ACTN: JSE 592 OPTION DESCRIPTION MENUA MENUB MENUC MENUD MENUE MENUF MENUG MENUH MENUI MENUJ MENUK MENUL MENUM MENUN MENUO MENUP MENUQ GENERAL MAINTENANCE ACCOUNT MAINTENANCE DEALS AND DEAL ADJUSTMENTS FINANCIAL DATA CREDIT CONTROL FLOAT CONTROL SCRIP RECEIPTS & CONTRAS SCRIP REGISTRATION SCRIP MOVEMENTS & DELIVERY REINSTATE DEAL,SCRIP RECORD OPEN POSITIONS & HISTORY ENTITLEMENT DATA MONEY MARKET ADMINISTRATION SECURITY PORTFOLIO DATA ELECTRONIC CASH PAYMENTS PF1/13 HELP PF2/14 RETURN PF4/16 MAIN MENU PF12/24 QUIT (ONL.DTE 16SEP DB 995) 148

149 Account Transfers & Portfolio Moves (cont.) Pressing PF8 will display the following menu options. Tab to MENUV and press Enter. OPTN: MAIN BCS/A: MAIN MENU (BROKER) 16SEP15 09:00:03 ACTN: JSE 592 OPTION DESCRIPTION MENUR MENUT MENUV SLB AND COLLATERAL CLIENT PLEDGE ACC TRANSFERS & PFV MOVES PF1/13 HELP PF2/14 RETURN PF4/16 MAIN MENU PF12/24 QUIT (ONL.DTE 16SEP DB 995) 149

150 Account Transfers & Portfolio Moves (cont.) MENUV displays all the new screens for both Account Transfers and Portfolio Moves. OPTN: MENUV BCS/A: ACC TRANSFERS & PFV MOVES 16SEP15 09:00:25 ACTN: JSE 592 OPTION DESCRIPTION ATDET ATDLV ATENQ ATIEQ ATREC ATSEL ATSTA PMDET PMDLV PMENQ PMIEQ PMREC PMSEL PMSTA ACCOUNT TRANSFER DETAIL REC ACCOUNT TRANSFER DELIVERY ACCOUNT TRANSFER ENQUIRY ACC TFR INSTRUCTION ENQUIRY ACCOUNT TRANSFER RECEIVED ACCOUNT TRANSFER SELECTION ACCOUNT TRANSFER STATUS INT PORTFOLIO MOVE DETAIL REC PORTFOLIO MOVE DELIVERY PORTFOLIO MOVE ENQUIRY PFV MOVE INSTRUCTION ENQUIR PORTFOLIO MOVE RECEIVED PORTFOLIO MOVE SELECTION PORTFOLIO MOVE STATUS INTIM PF1/13 HELP PF2/14 RETURN PF4/16 MAIN MENU PF12/24 QUIT (ONL.DTE 16SEP DB 995) 150

151 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves Account Transfers Portfolio Moves FTP Enhancements 151 FTP Automation

152 152 Account Transfers

153 153 Account Transfers (cont.)

154 Account Transfers (cont.) ATSEL - Account Transfer Select OPTN: ATSEL BCS/A: ACCOUNT TRANSFER SELECT 27OCT15 13:23:39 ACTN: UPDATE = Y OR N + ENTER TO UPDATE ABC JSE 592 ACC CDE : N/R : REC BRK NUMERIC CDE : 013 ACC NAME : KELLMAN MA REC BRK ALPHA CDE : AMR INSTR : REC BRK NAME : AMORIM SECURITIES (P SETTLEMENT DATE : REC BRK ACC CDE : EDIT PRIOR? : N SWIFT MSG Y/N : Y UPDATE (Y/N) : _ ACC TRF REF NO.: or USERID : and CREATE-DTE : REASON : AVAILABLE AVAILABLE PORTFOLIO TRANSFER INSTR INSTR NAME QUANTITY VALUE COST QUANTITY APN 2 ASPEN AQP 1 AQUARIUS NPK 2 NAMPAK PET 2 PETMIN RMI 0 RMIH SGL 0 SIBANYE PF1 HELP PF2 RETURN PF5 ACDLS PF7 PREV PF8 NEXT PF12 QUIT Enter Y to update Account Transfer and move to the next step 154

155 Account Transfers (cont.) ATSEL - Account Transfer Select OPTN: ATSEL BCS/A: ACCOUNT TRANSFER SELECT 27OCT15 13:23:39 ACTN: 480: RECORD ADDED: AT JSE 592 ACC CDE : N/R : REC BRK NUMERIC CDE : 013 ACC NAME : KELLMAN MA REC BRK ALPHA CDE : AMR INSTR : REC BRK NAME : AMORIM SECURITIES (P SETTLEMENT DATE : REC BRK ACC CDE : EDIT PRIOR? : N SWIFT MSG Y/N : Y UPDATE (Y/N) : Y ACC TRF REF NO.: or USERID : and CREATE-DTE : REASON : AVAILABLE AVAILABLE PORTFOLIO TRANSFER INSTR INSTR NAME QUANTITY VALUE COST QUANTITY APN 2 ASPEN AQP 1 AQUARIUS NPK 2 NAMPAK PET 2 PETMIN RMI 0 RMIH SGL 0 SIBANYE PF1 HELP PF2 RETURN PF5 ACDLS PF7 PREV PF8 NEXT PF12 QUIT Reference Number must be noted and sent to the receiving broker 155

156 Account Transfers (cont.) Selection Screen ATSEL Filter Parameters: Account Code (Mandatory) Instrument (Optional) Internal to another account or External to another broker or CSDP (single side) Settlement Date may be changed (defaults to next business day) Reason for transfer should be recorded Receiving account code may be entered by delivering broker (if known) REF number generated moves to next stage ATDLV 156

157 Account Transfers (cont.) ATDLV - Account Transfer Delivery OPTN: ATDLV BCS/A: ACCOUNT TRANSFER DELIVERY 27OCT15 13:25:08 ACTN: JSE 592 ACC CDE : N/R : REC BRK NUMERIC CDE : 013 ACC TRF REF NO : AT REC BRK ALPHA CDE : AMR ACC NAME : KELLMAN MA REC BRK NAME : AMORIM SECURITIES (P INSTR : REC BRK ACC CDE : SETTLEMENT DATE : PROCESS TRANSFER (Y/N) : _ SWIFT MSG(Y/N) : Y REASON : AVAILABLE AVAILABLE PORTFOLIO TRANSFER INSTR INSTR NAME QUANTITY VALUE COST QUANTITY APN 2 ASPEN AQP 1 AQUARIUS NPK 2 NAMPAK PET 2 PETMIN RMI 0 RMIH SGL 0 SIBANYE PF1 HELP PF2 RETURN PF5 ACDLS PF7 PREV PF8 NEXT PF12 QUIT Enter Y to process Account Transfer 157

158 Account Transfers (cont.) Authorise and Deliver screen ATDLV Filter Parameters: Account Code (Mandatory) Reference Number (Mandatory) Settlement Date may be changed (defaults to next business day) Reason for transfer may be changed Transfer processed moves to next stage ATREC 158

159 Account Transfers (cont.) ATREC - Account Transfer Received OPTN: ATREC ACCOUNT TRANSFER RECEIVED 27OCT15 13:27:38 ACTN: 010: END OF FILE ARM 592 DEL BRK NUMERIC CDE: 84 REC BRK CDE: 13 REC ACC CDE: DEL BRK ALPHA CDE..: JSE REC ACC NAME : KELLMAN MA DEL BRK NAME.: JSE SECURITIES (PTY CHANGE OF BENEFICIAL OWNERSHIP (Y/N): DEL BRK ACC CDE : N/R: ACC TRF REF NO.: AT REASON.: SETTLE DATE: ACCEPT TRANSFER(Y/N): _ SWIFT MSG: Y TRANSFER TRANSFER PRICE PORTFOLIO INSTR INSTR NAME QUANTITY VALUE COST APN ASPEN SGL SIBANYE PF1 HELP PF2 RETURN PF5 ACDLS PF7 BACK PF8 NEXT PF12 EXIT 159

160 Account Transfers (cont.) Receive Screen ATREC Filter Parameters: Delivering Broker (Mandatory) Delivering Broker Account Code (Mandatory) Batch/Ref Number (Mandatory) Portfolio cost may be changed Once transfer is accepted transactions are posted (Settlement date dependant) for both accounts, in both brokers books if applicable 160

161 161 Account Transfer - Enquiry Screens

162 Account Transfers - Enquiry and Monitoring Account Transfers ATENQ Account Transfer Enquiry ATDET Detail of each transfer 162

163 Account Transfers (cont.) ATENQ - Account Transfer Enquiry filter panel OPTN: ATENQ ACCOUNT TRANSFER ENQUIRY 18SEP15 11:44:54 ACTN: SPR 592 DELIVERING BROKER : OR RECEIVING BROKER : DELIVERING BRK ACC CDE : OR RECEIVING BRK ACC CDE : INSTRUMENT : E (INSTR:TYP, ALPHA,VERSION) FROM SETTLE DATE : (CCYYMMDD) TO SETTLE DATE : (CCYYMMDD) PF1 HELP PF2 RETURN PF12 QUIT 163

164 Account Transfers (cont.) ATENQ - Account Transfer Enquiry OPTN: ATENQ ACCOUNT TRANSFER ENQUIRY 4NOV15 15:36:04 ACTN: ARM 592 DELIVER BRK CDE: ACCOUNT RECEIVE BRK CDE: ACCOUNT: F DEL DEL BRK INSTR QUANTITY SETT DTE REC REC BRK SWIFT REFERENCE N BRK ACCOUNT BRK ACC CDE _ APN _ SGL PF1 HELP PF2 RETURN PF7 BACK PF8 NEXT PF9 ATDET PF12 EXIT 164

165 Account Transfers (cont.) ATDET- Account Transfer Detail Record OPTN: ATDET ACCOUNT TRANSFER DETAIL RECORD 27OCT15 13:24:14 ACTN: ARM 592 DEL BRK NUMERIC CDE: 84 ACC CDE : DEL BRK ALPHA CDE..: JSE ACC NAME: KELLMAN MA DEL BRK NAME.: JSE SECURITIES CHANGE OF BENEFICIAL OWNERSHIP (Y/N): DEL BRK ACC CDE : ACC TRF REF No.: AT REASON.: SETTLEMENT DATE. : STT CHARGED : TRANSFER TRANSFER PRICE PORTFOLIO INSTR INSTR NAME QUANTITY VALUE COST APN ASPEN SGL SIBANYE SELECT DETAIL : Y DTE: TME: USR: 592 SOURCE: BDATSEL AUTHORISE DETAIL : Y DTE: TME: USR: 592 SOURCE: BDATDLV SAT DETAIL : DTE: 0 TME: 0 USR: SOURCE: ACCEPT DETAIL : Y DTE: TME: USR: 592 SOURCE: BDATREC PF1 HELP PF2 RETURN PF5 ACDLS PF7 BACK PF8 NEXT PF12 EXIT 165

166 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves Account Transfers Portfolio Moves FTP Enhancements 166 FTP Automation

167 167 Portfolio Moves

168 Portfolio Moves (cont.) PMSEL provides ability to transfer specific accounts (Account = Y ) or a group of accounts by Branch and Partner or Advisor code OPTN: PMSEL PORTFOLIO MOVE SELECTION 6OCT15 11:13:48 ACTN: SPR 592 BRANCH and PARTNER : : ADVISOR : ACCOUNT (Y/N) : _ DETAIL (Y/N) : _ F1 HELP F2/14 RETURN F5/17 TABLES PF12 QUIT 168

169 Portfolio Moves (cont.) PMSEL displaying accounts grouped by Branch/Partner OPTN: PMSEL BCS/A: PORTFOLIO MOVE SELECTION 5NOV15 15:54:19 ACTN: JSE 592 BRANCH : REC BRK NUMERIC CDE PARTNER : L REC BRK ALPHA CDE : ADVISOR : REC BRK NAME : REASON : DETAILS (Y/N): N SETTLEMENT DATE : SWIFT MSG Y/N : _ UPDATE (Y/N): _ ACC CDE ACCOUNT NAME N/R REC BRK ACC CDE SAMUELS A LINDER M DU PLESSIS C PF1 HELP PF2 RETURN PF3 DETAILS PF5 TABLES PF7 PREV PF8 NEXT PF12 QUIT 169

170 Portfolio Moves (cont.) Details of the holdings of each accounts can be viewed but the screen set to DETAILS = N before the accounts can be moved OPTN: PMSEL BCS/A: PORTFOLIO MOVE SELECTION 5NOV15 15:55:59 ACTN: JSE 592 BRANCH : REC BRK NUMERIC CDE 000 PARTNER : L REC BRK ALPHA CDE : ADVISOR : REC BRK NAME : REASON : DETAILS (Y/N) : N SETTLEMENT DATE : SWIFT MSG Y/N : ACC CDE ACCOUNT NAME N/R REC BRK ACC CDE INSTR INSTR NAME QUANTITY VALUE PFV COST SAMUELS A 0 AFX 3 AFROX AGL 1 ANGLO AMS 1 AMPLATS APN 2 ASPEN ART 0 ARGENT BIL 1 BHPBILL BSR 1 BASREAD BTI 0 BATS LINDER M 0 ACL 1 ARCMITTAL PF1 HELP PF2 RETURN PF5 TABLES PF7 PREV PF8 NEXT PF12 QUIT 170

171 Portfolio Moves (cont.) PMSEL provides ability to transfer specific accounts (Account = Y ) or a group of accounts by Branch and Partner or Advisor code OPTN: PMSEL PORTFOLIO MOVE SELECTION 6OCT15 11:13:48 ACTN: SPR 592 BRANCH and PARTNER : : ADVISOR : ACCOUNT (Y/N) : _ DETAIL (Y/N) : _ F1 HELP F2/14 RETURN F5/17 TABLES PF12 QUIT 171

172 Portfolio Moves (cont.) PMSEL provides ability to transfer specific accounts (Account = Y ) on the screen below. The Delivering accounts and the Receiving accounts at the other broker (If known) may be entered. PF3 displays the holdings on the accounts. PF2 returns to the consolidated view. To action the Portfolio Move, the screen must be in the consolidated view (PF2) 172

173 Portfolio Moves (cont.) OPTN: PMSEL BCS/A: PORTFOLIO MOVE SELECTION 4NOV15 16:24:44 ACTN: E10:ENTER A VALID BROKER CODE JSE 592 BRANCH : REC BRK NUMERIC CDE PARTNER : REC BRK ALPHA CDE : ADVISOR : REC BRK NAME : REASON : DETAILS (Y/N): N SETTLEMENT DATE : SWIFT MSG Y/N : UPDATE (Y/N): ACC CDE ACCOUNT NAME N/R REC BRK ACC CDE HANEKOM A KLAASEN F GARDINER M SAMUELS A PF1 HELP PF2 RETURN PF3 DETAILS PF5 TABLES PF7 PREV PF8 NEXT PF12 QUIT 173

174 Portfolio Moves (cont.) OPTN: PMDLV BCS/A: PORTFOLIO MOVE DELIVERY 6NOV15 11:19:06 ACTN: JSE 592 BRANCH : REC BRK NUMERIC CDE 013 PARTNER : L REC BRK ALPHA CDE : ARM ADVISOR : REC BRK NAME : AMORIM SECURITIES (P SAT APPROVED Y/N : _ PORTFOLIO MOVE REF NO.: PM REASON : TRANSFERRED TO AMORIM SECURITIES DETAILS : Y SETTLEMENT DATE : SWIFT MSG Y/N : Y PROCESS TRF Y/N : Y ACC CDE ACCOUNT NAME N/R REC BRK ACC CDE INSTR INSTR NAME BATCH QTY BATCH VALUE CURR QTY PFV COST SAMUELS A 0 AFX 3 AFROX AGL 1 ANGLO AMS 1 AMPLATS APN 2 ASPEN ART 0 ARGENT BIL 1 BHPBILL BSR 1 BASREAD BTI 0 BATS LINDER M 0 PF1 HELP PF2 RETURN PF5 TABLES PF7 PREV PF8 NEXT PF12 QUIT 174

175 Portfolio Moves (cont.) OPTN: PMDLV BCS/A: PORTFOLIO MOVE DELIVERY 6NOV15 11:19:06 ACTN: 456: SUCCESSFUL UPDATE JSE 592 BRANCH : REC BRK NUMERIC CDE 013 PARTNER : L REC BRK ALPHA CDE : ARM ADVISOR : REC BRK NAME : AMORIM SECURITIES (P SAT APPROVED Y/N : _ PORTFOLIO MOVE REF NO.: PM REASON : TRANSFERRED TO AMORIM SECURITIES DETAILS : Y SETTLEMENT DATE : SWIFT MSG Y/N : Y PROCESS TRF Y/N : _ ACC CDE ACCOUNT NAME N/R REC BRK ACC CDE INSTR INSTR NAME BATCH QTY BATCH VALUE CURR QTY PFV COST SAMUELS A 0 AFX 3 AFROX AGL 1 ANGLO AMS 1 AMPLATS APN 2 ASPEN ART 0 ARGENT BIL 1 BHPBILL BSR 1 BASREAD BTI 0 BATS LINDER M 0 PF1 HELP PF2 RETURN PF5 TABLES PF7 PREV PF8 NEXT PF12 QUIT 175

176 Portfolio Moves (cont.) Receiving Broker Receiving broker must accept the Portfolio Move The new account number must be entered if not entered by the Delivering broker Once accepted, holdings will be updated on all accounts in both the Delivering Broker and the Receiving Broker s records P1 Portfolio Move Delivery P2 Portfolio Move Receipt Portfolio values may be changed if necessary 176

177 Portfolio Moves (cont.) OPTN: PMREC PORTFOLIO MOVE RECEIVED 06NOV15 11:43:04 ACTN: 560: ENTER CHANGES REQUIRED ARM 592 DEL BRK NUMERIC CDE: 84 PORTFOLIO MOVE REF NO : PM DEL BRK ALPHA CDE..: JSE SETTLEMENT DATE: DEL BRK NAME..: JSE SECURITIES ACCEPT PORTFOLIO MOVE (Y/N): _ SAT APPROVED Y/N ACCEPT BRK CDE: 13 REASON.: TRANSFERRED TO AMORIM SECURITIES SWIFT MSG: Y DEL BRK ACCOUNT NAME N/R REC BRK ACC NAME N/R ACC CDE INSTR INSTR NAME QUANTITY PFV COST ACC CDE SAMUELS A AFX AFROX AGL ANGLO AMS AMPLATS APN ASPEN ART ARGENT BIL BHPBILL BSR BASREAD BTI BATS PF1 HELP PF2 RETURN PF5 ACDLS PF7 BACK PF8 NEXT PF12 EXIT 177

178 Portfolio Moves (cont.) OPTN: PMREC PORTFOLIO MOVE RECEIVED 06NOV15 11:43:04 ACTN: E37: TRANSFER ACCEPTED ARM 592 DEL BRK NUMERIC CDE: 84 PORTFOLIO MOVE REF NO : PM DEL BRK ALPHA CDE..: JSE SETTLEMENT DATE: DEL BRK NAME..: JSE SECURITIES ACCEPT PORTFOLIO MOVE (Y/N): _ SAT APPROVED Y/N ACCEPT BRK CDE: 13 REASON.: TRANSFERRED TO AMORIM SECURITIES SWIFT MSG: Y DEL BRK ACCOUNT NAME N/R REC BRK ACC NAME N/R ACC CDE INSTR INSTR NAME QUANTITY PFV COST ACC CDE SAMUELS A SAMUELS A AFX AFROX AGL ANGLO AMS AMPLATS APN ASPEN ART ARGENT BIL BHPBILL BSR BASREAD BTI BATS PF1 HELP PF2 RETURN PF5 ACDLS PF7 BACK PF8 NEXT PF12 EXIT 178

179 179 Portfolio Moves - Enquiry Screens

180 Portfolio Moves (cont.) OPTN: PMENQ PORTFOLIO MOVE ENQUIRY 6NOV15 12:53:09 ACTN: ARM 592 PORTFOLIO MOVE REF NO: DELIVERING BROKER: RECEIVING BROKER: FROM SETTLE DATE: TO SETTLE DATE: DETAIL (Y/N): _ PF1 HELP PF2 RETURN PF12 EXIT 180

181 Portfolio Moves (cont.) OPTN: PMENQ PORTFOLIO MOVE ENQUIRY 13NOV15 09:29:58 ACTN: ARM 592 DELIVERING BRK CDE: 84 F DEL BRK ACCOUNT NAME ACC CDE ACCOUNT NAME N ACC CDE INSTR INSTR NAME QUANTITY PFV COST _ SAMUELS A _ LINDER M F1 HELP F2 RETURN F7 BACK F8 NEXT F9 PMDET F12 QUIT 181

182 Portfolio Moves (cont.) OPTN: PMDET PORTFOLIO MOVE DETAIL RECORD 6NOV15 12:25:37 ACTN: JSE 592 DEL BRK NUMERIC CDE: 84 REC BRK NUMERIC CDE : 13 DEL BRK ALPHA CDE..: JSE REC BRK ALPHA CDE : ARM DEL BRK NAME: JSE SECURITIES REC BRK NAME: AMORIM SECURITIES (P PORTFOLIO MOVE REF NO.: PM SETTLEMENT DATE : REASON: TRANSFERRED TO AMORIM SECURITIES DEL BRK ACCOUNT NAME ACC CDE ACCOUNT NAME ACC CDE INSTR INSTR NAME QUANTITY PFV COST SAMUELS A AFX AFROX AGL ANGLO AMS AMPLATS APN ASPEN ART ARGENT BIL BHPBILL BSR BASREAD SELECT DETAIL : Y DTE: TME: USR: 592 SOURCE: BDPMSEL AUTHORISE DETAIL : Y DTE: TME: USR: 592 SOURCE: BDPMDLV SAT DETAIL : DTE: 0 TME: 0 USR: SOURCE: ACCEPT DETAIL : Y DTE: TME: USR: 592 SOURCE: BDPMREC F1 HELP F2 RETURN F7 BACK F8 NEXT F11 RIGHT F12 EXIT 182

183 Portfolio Moves (cont.) OPTN: PMDETR PORTFOLIO MOVE DETAIL RECORD 6NOV15 12:26:00 ACTN: JSE 592 DEL BRK NUMERIC CDE: 84 REC BRK NUMERIC CDE : 13 DEL BRK ALPHA CDE..: JSE REC BRK ALPHA CDE : ARM DEL BRK NAME: JSE SECURITIES REC BRK NAME: AMORIM SECURITIES (P PORTFOLIO MOVE REF NO.: PM SETTLEMENT DATE : REASON: TRANSFERRED TO AMORIM SECURITIES ACCOUNT ACCOUNT NAME TOTAL SETTLE CODE INSTR INSTR NAME SWIFT REFERENCE QUANTITY DATE SAMUELS A AFX AFROX R AGL ANGLO R AMS AMPLATS R APN ASPEN R ART ARGENT R BIL BHPBILL R BSR BASREAD R BTI BATS R SELECT DETAIL : Y DTE: TME: USR: 592 SOURCE: BDPMSEL AUTHORISE DETAIL : Y DTE: TME: USR: 592 SOURCE: BDPMDLV SAT DETAIL : DTE: 0 TME: 0 USR: SOURCE: ACCEPT DETAIL : Y DTE: TME: USR: 592 SOURCE: BDPMREC F1 HELP F2 RETURN F7 BACK F8 NEXT F11 RIGHT F12 EXIT 183

184 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 184

185 FTP Enhancements List of additional FTP services CLMNT (Client Uploads) CLMNT ADMNT LTMNT NAMNT BNKAC CLTM 185

186 FTP Enhancements (cont.) List of additional FTP services cont. CAEVT (Corporate Action Elective events) Scrip Dividend Take-Up Odd Lot SLB Uploads 186

187 FTP Enhancements (cont.) Set-up for new Upload Services To receive notification on the success or failure of the new upload services, groups can be set-up This will be done by CSS and users must specify for which upload service they require notification Notification for each upload service will be set-up separately, however the same user groups can be used for both 187

188 Agenda: Deal Management Real time Deal/Deal Allocation Uploads SFA Enquiry Screens Prime Broking SLB Automation Corporate Action Automation Account Transfers and Portfolio Moves FTP Enhancements FTP Automation 188

189 FTP Automation High-level Automation of a set of protocols and procedures rather than any software change In order to minimise the amount of human intervention currently required for these uploads, a different approach to integrating BDA with broker systems has been taken Using the built in functionality of CONTROL - M and CONTROL - O, the necessity for a user to manually submit a job via RPROC will be removed Will facilitate better error handling 189

190 FTP Automation (cont.) FTP Process Flow 190

191 Questions?