ISSA PROPOSAL ON GLOBAL CORPORATE ACTIONS PRINCIPLES

Agenda Key Principles and Objectives Background Way Forward CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Objective Key Principles and Objectives Background Way Forward CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Key Principles Straight-Through Processing (STP) and ISO Standards Message Content Issuer Sourced Key Information Required Information Unique identifiers Timelines of Notification Process harmonization within and across markets Publication of Event Rules Protecting investors' rights CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Objectives To synthesize existing and emerging global industry initiatives on corporate actions processing and thereby publish principles that would facilitate risk reduction, efficiency, investor protection, and issuers’ ability to reach a broad investor base, highlighting gaps in current practices and areas that would benefit from concerted action.  To facilitate the alignment of efforts among the various industry groups and advocate these principles globally to relevant stakeholders — the entire securities investment industry, issuers and their agents, and regulators —and facilitate the monitoring of issues and developments in key markets around the world, with respect to the principles.  To highlight recommended practices being implemented or planned around the world, and provide a one-stop reference point to relevant work being done by industry groups globally, with links to their websites. CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Background Key Principles and Objectives Global Issues and Strate’s comments Way Forward CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Global Issues and participation Provision of information from source Market education including usage of common language globally Different timelines across various instruments/markets Fraction Handling Active participation is required which can be channeled via Strate on behalf of AMEDA CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Highlights from Strate’s Comments on the ISSA publication Specifically with reference to a move to a T+3 settlements cycle in South Africa Based on the current T+5 model which: Limits claims in the market Regulates Issuers Provides the most value to Investors Additions for Key Dates, such as finalization dates, EX-date and LDT+1 Pay Date: Is always RD +1 in the South African Market as a standard Unsettled Transactions Management Including Claims: as the LDT concept has reduced market claims as investors have a clear indication of the last point to trade to qualify for an entitlement CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Way Forward Key Principles and Objectives Background Way Forward CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Way Forward Comments have been sent to the ISSA Board, however additional comments will be accepted Strate will be the single point of contact to co-ordinate and assimilate feedback between AMEDA and ISSA CAE project has provided Strate with specialist IP in terms of defining the rules that will govern the processing engine of the Equities CA system. As this is the information that is required from an Issuer, via, the JSE, we thought that the best way to get this information, would be directly from the Issuer themselves. There has been a great focus globally, via, Swift, DTCC, (to name a few ) and all active Asset Servicing groups to standardize the processing of CA’s, with a specific focus on the source. We envisage that there may be an opportunity to utilize the IP that Strate has invested into from a business and a technological perspective so that we don’t fall into the ‘old age ‘ trap of ‘re-inventing the wheel’

Questions