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Clearing and Settlement 

The Trop-X Market Rules currently prescribe for all listed securities to be settled pursuant to  one of the three IOSCO and G30 recommended delivery versus payment frameworks being DVP Model 1 (“Real Time Gross Settlement”).  Trop-X is the first exchange in Africa to offer a Real Time Gross Settlement framework having developed and offered this from the launch of the exchange in August 2013.  The DVP Model 1 framework requires both cash and securities accounts to be pre-funded and immediately (i.e. in real time) at the time of the transaction matching on Trop-X the securities leg results in a movement of securities from the securities account of the seller to the securities account of the buyer and the cash leg results in a movement of cash from the cash account of the buyer to the cash account of the seller.  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. 

Trop-X has approved AfriClear Limited (“AfriClear”) to provide clearing and settlement services for all (except for ZAR denominated) Trop-X listed securities.   

Trop-X has also approved the South African Central Securities Depository (STRATE) as a securities settlement system for ZAR denominated Trop-X listed securities from South African domiciled issuers.

Trop-X may also approve other securities settlement systems as well as non-standard methods types of securities that require a different settlement model or cycle (e.g. “specialist securities”, open-ended funds, etc.) on a case by case basis. 

Settlement Bank

AfriClear has maintains its clearing agency account and has appointed Barclays Bank (Seychelles) as its settlement bank through which all non-ZAR denominated securities transactions are settled.

Securities Registry

Any issuer of a Trop-X listed security must appoint an approved securities facility/registry to maintain the securities ownership register of the listed securities in uncertificated form.  Trop-X has approved AfriDep Limited (“AfriDep”) to provide this service for issuers of securities listed on Trop-X. 

Trop-X has also approved the South African Central Securities Depository (“STRATE”) to maintain the securities ownership register of certain Trop-X listed securities.   

Trop-X may approve another suitable securities registrar for securities which have been approved for a non-standard settlement model as above.