Strate’s membership to PRESENTED BY: Monica Singer DATE: 22 October 2009 PLACE: 10 th AMEDA Conference- Morocco Marrakesh

CSD to CSD Links Globally Currently there are no CSD to CSD links to Africa 2

Link-Up Markets: The Universal ‘Adapter’ Driving message harmonization through message conversion (using the ‘Adapter’) Leveraging existing technology and infrastructure The ‘Adapter’ written by TCS, used to integrate with Strate technology supported by TCS. A technology solution to drive new business solutions which operates using Swift technology. 3 Link Up Markets infrastructure “Adapter” Investor CSD (sender)Issuer CSD (receiver) Link-Up Markets provides the infrastructure to facilitate cross-border settlement between foreign CSDs and Strate Mapping Rules to convert messages

Target 2 Securities vs. Link-Up Markets Post Target 2 Securities (T2S) Options for CSDs were consolidation (i.e. Euroclear’s single platform) or Interoperability between CSDs which Link-Up Markets provides Increased competition between CSDs CSDs to move up the value chain (possibly into custody) 4 Link-Up Markets is more than just a reaction to T2S

Target 2 Securities vs. Link-Up Markets 5 Link-Up Markets provides complimentary services to T2S

Why is Link-Up Markets a good fit for Strate? High Costs of multiple CSD to CSD Links vs. Link-Up’s interoperability Link-Up provides interoperability (no “re-inventing of the wheel”) between many CSDs and promotes reusability of existing technology Cheaper overall costs (IT infrastructure is outsourced, Message conversion, Maintenance of multiple links) Link-Up provides a single point of access to Top Investment Destinations Either directly or indirectly to 7 out of the Top 10 South African Investment Destinations High adaptability and synchronization of technology platforms Link-Up technology is TCS-based (Strate’s IT vendor of choice) SAFIRES system at Strate is present in other CSD member(s) of Link-Up Markets Link-Up and Strate both use SWIFT technology extensively 6

Strategic benefits for Strate joining Link-Up Markets 7 Single link with the rest of the worldAlignment with Strate’s strategy for global recognition Strengthen strategic position of South Africa as the Hub for further African markets Strate becomes part of the international CSD community Learning from other CSDs on Global Best Practice for the future Strategic direction of Strate Potential movement up the asset-serving value chain and new products and services

Value Proposition to CSD Participants Direct access to cross-border settlement at domestic CSD charge An alternative channel for cross-border settlement, with the ability to retain current relationships with Global Custodians Using existing connectivity to Strate (re-use of existing technology) through the domestic infrastructure and operations to facilitate cross-border settlement White-labelling of services by Strate to its participants Potential for an increase in inbound investment 8

What Link-Up Markets is for the South African Market Link-Up Markets introduces the following to the South African Market: Direct access to cross-border settlement at a domestic CSD charge Use of existing domestic infrastructure to effect a cross-border settlement An alternative/choice channel for cross-border settlement for inbound and outbound transactions Africa’s first CSD to CSD link with 8 European CSDs such as Clearstream Banking AG Frankfurt (Germany), CSE (Cyprus), Hellenic Exchanges S.A. (Greece), IBERCLEAR (Spain), Oesterreichische Kontrollbank AG (Austria), SIX SIS AG (Switzerland), VP SECURITIES (Denmark) and VPS (Norway) through bi-lateral agreements Global exposure to proudly South African technology 9

What functions would Strate be required to perform as a member of Link-Up Markets? Issuer CSD: Refers to the CSD which settles inbound investments: Cash Movement : Always by a foreign bank to a local Bank Main function of the Issuer CSD: To settle the transaction in accordance with Issuer CSD rules Link-Up Member CSD to open an account in the Issuer CSD Investor CSD: Refers to the instructing CSD for outbound investments: (SA investors wanting to invest in foreign markets) Cash Movement: Client’s Bank in South Africa which is a authorised dealer transferring to a bank operating with the Link-Up Markets CSD (i.e. the Issuer CSD) Main function of the Investor CSD: Instructs the Issuer CSD in a foreign country Holds mirrored accounts in the Investor CSD of holdings in the Issuer CSD (as settlement takes place in the Issuer CSD) 10 Strate is joining Link-Up as an Issuer CSD initially due to international demand from foreign CSDs Issuer CSD is for Phase I and Investor CSD is for Phase II for all Link-Up CSD members

1.Connect to Link-Up Using existing SWIFT technology Using Strate’s communication portal Obtain the requirements of 1 Investor CSD Map requirements onto existing functionality within Strate as required by the Investor CSD 2.Service Scope Analysis With 1 Investor CSD to start off with Agreeing Business Process flows and roles and responsibilities in legally binding agreements 3. Bi-Lateral Agreements Based on Business Process flows and Bi-lateral agreements, develop Market guidelines for an Investor CSD (current and potential) who are members of Link-Up Markets about how to become an account holder in Strate (acting as an Issuer CSD) 4. Develop Market Guidelines Strate is planning the Issuer CSD leg as its first step 11

Estimated Live Date 12 Fourth quarter 2010 with at least one Investor CSD amongst Link-Up members having an account in Strate, opened and operational

Questions? Thank you 13 Consider it Done!