Clearing

and Settlement

Cash Equities Market

A2X Markets provides for settlement assurance of all trades executed on the central order book of the A2X trading system.

A2X performs the role of the Settlement Committee in ensuring that trades executed on the A2X equity trading system are settled in accordance with the principles of “T+3 rolling contractual settlement”.

In providing this assurance, the team performs the following functions:

  • Monitoring settlement to ensure that settlement takes place on T+3.
  • Capital Exposure Requirements.
  • Performing securities or money lending and borrowing as lender of last resort.
  • Rolling of settlements.
  • Failed trade management procedures:
    • Retransaction
    • Compensation
Trading Process Clearing Process

Central

Order Book Trades

Trades are booked and matched via the Trading Engine

  •  Trades are anonymous
  •  Settlement is guaranteed
  •  Capital Exposure Requirements apply as settlement is guaranteed

Report

Only Trades

Benchmark Cross and Large in Scale are not “settlement assured” by A2X

 Separate settlement groups created on Strate but can be linked (BtB and DPL)

  • Across groups
  • Across JSE groups

  Capital Exposure Requirements

  • No Capital Exposure Requirements (not settlement assured)
  • No offset with order books

Capital

Exposure Requirements

A2X does not calculate CAPAD and Margin as per the normal market convention

Capital Exposure Requirement looks at the brokers exposure across the settlement cycle.

  • Principal exposure – net per instrument per settlement date
  • Agency transactions not committed to
  • Failed Trades (Rolling/retransaction/compensation)

Securities Lending & Borrowing to managed separately

Post collateral against the exposure

  • Cash (can leave a cash deposit)
  • Securities
  • Bank Guarantee

In providing this assurance, the team
performs the following functions

Monitoring settlement
to ensure that
settlement takes place
on T+3.

Performing securities or
money lending and
borrowing as lender of
last resort.

Rolling of
settlements.

Failed trade
management
procedures.

Retransaction

Compensation

BC + LS

Settlement

Benchmark Cross and Large in Scale are not “settlement
assured” by A2X.
Separate settlement groups created on Strate but can be
linked (BtB and DPL):
– Across groups
– Across JSE groups
Capital Exposure Requirements:
– No Capital Exposure Requirements (not settlement assured)
– No offset with order books

View our market Stats

A2X’s
Post Trade System

After much engagement with our brokers and in partnership with a leading local tech company, MCI, we created a post trade system that allows our brokers to undertake agency trades on behalf of their clients and easily manage the deal allocation and settlement process.

The Member Client Record and Allocation System (MeCRAS) facilitates integration between the brokers’ downstream systems allowing for seamless end to end processing. MeCRAS is also hosted by A2X which means technical integration into the brokers infrastructure is simple.

Post Trade Feedback