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THE CURRENT DEBENTURES OPERATING ENVIRONMENT
Overview of the debentures market
The SARB debentures are a very specific type of debt security offered by the SARB. These are offered to market participants to drain excess liquidity from the domestic money markets. Debentures were selected as proxy for other securities since they are a short-term instrument directly under the control of the SARB – which made it easier to tokenise in a PoC, with the intent that insights could be applied in other environments.
In South Africa, debentures are issued and traded in the money market for immediate delivery. Issuance and trading happen over
the counter (OTC) with securities settlement happening through a company called Strate –
as the CSD and SSS. Money settlement happens through the SAMOS system as the RTGS system, which is owned and operated by the SARB.
Figure 4: South African financial market transaction flows
THE CURRENT DEBENTURES OPERATING ENVIRONMENT
Large value payments
SAMOS Foreign participants exchange
BankServ
CLS
Large value payments
Large value payments
OTC JSE JSE OTC
System operator
Clearing
FX/securities settlements
Cash settlement
Source: NT et al, 2018
JSE Clear (CCP)
STRATE (SSS/CSD) SAMOS (RTGS)
Banks
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