Settlement (Part I) Flashcards
Define “certificated equity securities”
Equity securities evidenced by a certificate.
Define “contract note”
Notes issued in respect of trades executed on the JSE equities trading system by a member on any particular day:
1. on behalf of a client, a confirmation from the member to the client in respect of such trades; and
2. on behalf of a member’s proprietary account, the aggregate trades executed on such account
Define “CSDP”
A central securities depository participant that has been accepted by a central securities depository as a participant in that central securities depository.
Define “dematerialisation”
The process of converting a certificated equity security into an uncertificated equity security.
Define “failed trade”
A transaction in equity securities which the Settlement Authority deems to be a failed trade on the basis that neither the client, the member nor Settlement Authority is able to ensure that the transaction will settle on the settlement date or any revised settlement date.
Define “funds settlement account”
A funds account with a CSDP in the name of a member used exclusively for the settlement for funds relating to transaction in equity securities.
Define “JSE settlement system”
The computer system or systems and associated network or networks operated or used by the JSE for the purpose of settling transactions in equity securities.
