Post Trade Summary
Clearing and Settlement
The MERJ EXCHANGE Market Rules require transactions to be cleared and settled pursuant to the rules of an appointed clearing agency on a strict delivery vs. payment basis. For “cash market” securities (e.g. equities and debt) MERJ has adopted one of the three IOSCO and G30 recommended delivery versus payment frameworks being DVP Model 1 (“Real Time Gross Settlement”).
There is no short selling. High frequency trading which many investors find undesirable is not prevalent and is in fact discouraged by this model. Importantly this also removes risk of delayed or failed settlements.
MERJ EXCHANGE has approved MERJ Clearing and Settlement Limited (“MERJ CLEAR”) to provide clearing and settlement services for all (except for ZAR denominated) MERJ listed securities.
MERJ EXCHANGE has also approved the South African Central Securities Depository (STRATE) as a securities settlement system for ZAR denominated MERJ listed securities from South African domiciled issuers.
Any issuer of a MERJ listed security must appoint an approved securities facility/registry to maintain the securities ownership register of the listed securities in uncertificated form. MERJ has approved MERJ Depository and Registry Limited (“MERJ DEP”) to provide this service for issuers of securities listed on MERJ EXCHANGE.
MERJ EXCHANGE has also approved the South African Central Securities Depository (“STRATE”) to maintain the securities ownership register of certain MERJ listed securities domiciled in South Africa.
Learn more about MERJ Clearing and Settlement Limited
Learn more about MERJ Depository and Settlement Limited