THE JSE SECURITIES EXCHANGE CLEARING AND SETTLEMENT 8

THE JSE SECURITIES EXCHANGE CLEARING AND SETTLEMENT 8 May 2003 1. www. jse. co. za

WHERE DO WE START – 1999 STRATE – T+5 Rolling Contractual Settlement – Guaranteeing of Trades by JSE – Ring Fencing – Segregation of clients assets 2 www. jse. co. za

PROCESS FLOW TIMELINE Client A (Buyer) Contract Note Buy Order Client B (Seller) Sell Order Matched Trade Broker A Allocations BDA Settlement Status Order Intimations Allegement CSDP Status Intimations Funding of Amount 3 SETS Settlement Order SAFIRES Payment Order SAMOS Broker B Trade Monitoring System Allegement Status Intimations Commitment CSDP Commitment Payment Confirmation Payment of Amount www. jse. co. za Contract Note Settlement Confirmation / Affirmation Equities clearing and settlement in South Africa is relatively complex, involving many parties, systems and interfaces.

PROCESS FLOW TIMELINE T T+1 T+2 T+3 T+4 T+5 Settlement Order Deal Execution Deal Allocation Deemed Affirmation Client / Broker Contract Note Client Affirmation to CSDP or Client Rejection to Broker Net Broker Re-Allocation Client Affirmation on Re-Allocation Non-Controlled Client Breach Principal Assumption CSDP Commitment SA Margining Broker Borrowing CSDP Commit SA Borrowing Failed Trade Settlement 4 www. jse. co. za

Trade Monitoring System 5 www. jse. co. za

Trade Monitoring System 6 www. jse. co. za

Trade Monitoring System 7 www. jse. co. za

Trade Monitoring System 8 www. jse. co. za