Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1.	Does the market use ISIN as the primary securities identification code?	Yes. All securities listed on the JSE (JSE Securities Exchange South Africa) are assigned a unique ISIN. Each ISIN is loaded in the STRATE CSD and is validated against every transaction received from users.
2.	Are the major participants in the market linked electronically?	Yes. All STRATE participants are linked electronically. This is a prerequisite in the entry criteria for Business Partners and CSD Participants interfacing to STRATE, as all communication is performed via SWIFT messages.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	All settlement messages adhere to ISO15022 message standards. Certain status messages are proprietary messages based on SWIFT standards.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	STRATE has standardised on the use of BIC codes for the identification of counterparties. In addition, each participant has a unique Business Partner identification comprising of alphanumeric codes.