Podcast
Questions and Answers
The Bonds Clearing and Settlement function acts as the Settlement Arbitrator, overseeing the settlement of cash bond deals listed on the JSE.
The Bonds Clearing and Settlement function acts as the Settlement Arbitrator, overseeing the settlement of cash bond deals listed on the JSE.
False (B)
The Settlement Authority is responsible for ensuring that all trades, including those not settled in cash, are handled appropriately.
The Settlement Authority is responsible for ensuring that all trades, including those not settled in cash, are handled appropriately.
False (B)
Clearing encompasses the confirmation of trade terms to guarantee both the buyer's and seller's adherence to their responsibilities.
Clearing encompasses the confirmation of trade terms to guarantee both the buyer's and seller's adherence to their responsibilities.
True (A)
The clearing process primarily focuses on trade pricing.
The clearing process primarily focuses on trade pricing.
Settlement involves trade confirmations.
Settlement involves trade confirmations.
Strate is responsible for the physical storage of bond certificates.
Strate is responsible for the physical storage of bond certificates.
Strate enhances efficiency by netting transactions, which consolidates multiple positions into fewer obligations.
Strate enhances efficiency by netting transactions, which consolidates multiple positions into fewer obligations.
Netting increases settlement risks by consolidating transactions.
Netting increases settlement risks by consolidating transactions.
Strate only handles equities, not bonds.
Strate only handles equities, not bonds.
If a trade does not clear, settlement can still occur.
If a trade does not clear, settlement can still occur.
Flashcards
What is the clearing process?
What is the clearing process?
Ensures trade terms are confirmed and both buyer and seller meet obligations.
What does the Bonds Clearing and Settlement function do?
What does the Bonds Clearing and Settlement function do?
Settles trades of Cash Bond Securities listed on the JSE.
What is Strate?
What is Strate?
South Africa's central securities depository that clears and settles financial instruments, including bonds.
Study Notes
- The Bonds Clearing and Settlement function acts as the Settlement Authority, as stipulated by the JSE IRC Rules and Directives.
- The Settlement Authority makes sure that trades involving Cash Bond Securities listed on the JSE are settled correctly.
Clearing
- The clearing process confirms trade terms and ensures that both the buyer and seller meet their obligations.
- Strate, South Africa's central securities depository, is vital for clearing and settling financial instruments, including bonds.
- Strate nets transactions to lower settlement risks and improve efficiency.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
