1. The move to T+3 Phase 3 Brett Kotze & Chris Grove

2. 2 T+3 Project Market Communication The aim of the T+3 project The primary aim of the T+3 project is to shorten the settlement cycle for equities from 5 to 3 days

3. 3 Phase 1 – Regulatory and Automation Phase 2 – ECS go-live on T+5 Settlement Cycle Phase 3 – Market on T3 settlement cycle PhaseStatus 1Implemented successfully - 22 July 2013 2Implemented successfully – 20 October and 27 October 2014 3Analysis in progress, commenced with development and iterative testing Mid 2016 ready for go-live Overview of the T+3 timeline Overall programme status 3

4. 4 Functions per phase Releases Phase 1 (Regulatory and Automation)Phase 2 (ECS Go-live T+5) Split Brokers Prop and Controlled Client Pledge (electronic pledge to 3 rd parties) SLB Automation to CSDP’s Corporate Actions Automation to CSDP’s ECS (First Phase – replacement of the equities clearing & settlement system) Deal Management Prime Broking Technology Roadmap Upgrade (ECS) Phase 3 (ECS T+3 Implementation) ECS (Second Phase – functional migration to T+3) Change from T+5 to T+3 Settlement Fails Management Automation

5. 5  Recap of BDA T+3 phase 2 and other automation -  Automation of Prime Broking Transactions  Real Time Deal Management  Real Time Contract Notes  Same Day Allocations Upload  Same Day Deals Upload  CLMNT Upload  Demat Holding Upload  Corporate Actions Elective Events upload Functionality provided in previous phases

6. 6  Recap of BDA T+3 phase 2 and other automation -  We already have some members who have gone live in using some of these new upload files  These mechanisms were provided where members required further automation in BDA to reduce manual work or where members want to improve on existing business processes  Each members can manage their own development and readiness if they want to use any of the provided upload mechanisms Functionality provided in previous phases (cont.)

7. 7 Phase 3 timeline Q1Q2Q4Q3Q2 2015 2016 2014 Q3 Q1 Q4 Internal Analysis Vendor documentation and development Internal development documentation Internal Development SYT (7 iterations) SIT (Internal – 2 Cycles) SIT (External – 3 Cycles)UAT (2 Cycles) Regression Cycle User Readiness We have communicated to the market that we aim to go-live with T+3 between May and July 2016 Go-live: May-July 2016 Go-live: May-July 2016 7

8. 8 Overview of the Phase 3 scope 8 Functions changing / impactedJSECSDPs JSE Equity Members StrateClients T+5 to T+3 settlement cycle (timeline changes)xxxxx Scrip Lending and Borrowing / Money Lending and Borrowing x x Terminating transactions BDA (Control clients and Brokers Prop) xxx xx Terminating transactions CSDP'sxxxxx Failed Trade Managementxxxxx Margining (SFA's)x x Rework SFA's for prime brokingx x These changes affect a number of systems within the JSE

9. 9 Reducing the timeframe in which to conduct the existing processes and activities will result in quicker settlement. T+3 settlement cycle

10. 10 On-market activities current versus future ActionCurrent Timings – T+5Future Timings – T+3 Settlement Orders – non- controlled clients T - BatchT - Real-time after allocations Client Affirmation to CSDP/Rejection to broker T+2 (12h00)T+1 (18h00) Deemed Affirmation ClientT+2 (12h00)T+1 (18h00) Broker re-allocationT+2 (16h00)T+1 (18h00) Client affirmation of re-allocationT+2 (16h00)T+1 (18h00) Brokers netsT+2 (EOD)T+1 (EOD)

11. 11 On-market activities current versus future (cont.) ActionCurrent Timings – T+5Future Timings – T+3 Non-controlled client breachT+3 (12h00)T+2 (12h00) Principal Assumption (reverse substitution) T+4 (12h00)T+2 (16h00) MarginingT+3 (EOD)T+1 (EOD) Broker borrowing on Principal Assumption T+4 (12h00 to 14h00)T+2 (16h00 to 18h00) Settlement Authority SLBT+4 (14h00 to 16h00)T+3 (08h00 to 10h00) Failed Trade/Rolling Of SettlementT+4 (16h00 to 18h00)T+3 (10h00 to 12h00) SettlementT+5T+3

12. 12 Off-markets activities current versus future Type Current Settlement Cycle Reporting Time Commit / BTB Time Future Settlement Cycle Reporting Time Commit / BTB Time Depository Receipts Min T+115h00 (S-1)17h00 (S-1)Min T+018h00 (S) Depository Receipts on RD Not permitted on RD Min T+009h00 (S)10h00 (S) Off-marketsT+512h30 (S-2)17h00 (S-2)T+312h00 (S-1)15h00 (S-1) Acct Transfers Min T+018h00 (S) Min T+018h00 (S) Acct Transfers on RD N/A where elective CA Min T+009h00 (S)10h00 (S)

13. 13 Off-markets activities current versus future (cont.) Type Current Settlement Cycle Reporting Time Commit / BTB Time Future Settlement Cycle Reporting Time Commit / BTB Time Portfolio Moves Min T+018h00 (S) Min T+018h00 (S) Portfolio Moves on RD N/A where elective CA Min T+009h00 (S)10h00 (S) Off-market SLB Min T+115h00 (S-1)17h00 (S-1)Min T+013h00 (S)15h00 (S) SLB BPMin T+115h00 (S-1)17h00 (S-1)Min T+013h00 (S) SLB Rev Substitution Min T+110h00 (S-1)12h00 (S-1)Min T+117h00 (S-1)18h00 (S-1) SLB Returns (Off-market and BPs) Min T+0 (BPs) 09h00 (S)10h00 (S)Min T+017h30 (S)17h00 (S)

14. 14 Off-markets activities current versus future (cont.) Type Current Settlement Cycle Reporting Time Commit / BTB Time Future Settlement Cycle Reporting Time Commit / BTB Time Off-market SLB on RD N/AMin T+009h00 (S)10h00 (S) SLB BP on RDMin T+009h00 (S)10h00 (S)Min T+009h00 (S)10h00 (S) Same day SLB Returns (Off- markets and BP on RD Min T+0 (BPs) 09h00 (S)10h00 (S)Min T+009h00 (S)10h00 (S)

15. 15 General Corporate Action cycle

16. 16 Corporate Actions activities ActionCurrent Timing - T+5Future Timings - T+3 Declaration DateRD-15RD-13 or earlier Finalization DateRD-10RD-8 LDTRD-5RD-3 First day to trade new entitlementRD-4RD-2 ElectionRD (13h00) RD Payment DateRD+1 Settlements for new entitlementsRD+1

17. 17 Fails Management by JSE Settlement Authority Primary  Securities Lending and Borrowing  Money Lending and Borrowing Then  Rolling of Settlement:  If circumstances are correct Then  Failed Trade:  Retransactions  Compensation For Failed Trade procedures we need to find opposite transactions Failed Trade procedures

18. 18 Back-to-Back Links – MT 598-103 MT598-103  Same settlement cycle  Must include details of linked transactions:  On-Market report only  SLB  Collateral  Account Transfer  Portfolio move  SLB return  Collateral return  Off-markets  Could be multiple links

19. 19 Back-to-Back Links – MT 598-104 MT598-104  Future settlement cycle  Must include details of linked transactions:  On-Market report only  SLB  Collateral  Account Transfer  Portfolio move  SLB return  Collateral return  Off-markets  Could be multiple links

20. 20 BDA terminating and non-terminating transactions  ECS will request terminating and non-terminating transactions from BDA  BDA will supply:  Controlled Clients transactions; and  Broker proprietary – net amount

21. 21 Equities Clearing System (ECS)  Updates from Strate for links  MT598-103  MT598-104  Failed Trade procedures  Look for a terminating transaction:  Equal and opposite; then  Highest to lowest  Look for a non-terminating transaction with least impact:  Account transfers  Portfolio move  Collateral  SLB return  Off-market  Then  Equal and opposite; then  Highest to lowest

22. 22 Message instruction  MT598-116  Advising instrument with potential problems  This could happen multiple times  MT598-117  Settlement orders selected for Failed Trade procedures  MT598-118  Problem resolved MT598-117 is sent to STRATE and the CSDP. Strate will lift the commit based on this message and break links where applicable.

23. 23 ECS will: 1.Generate cancellation to Strate for Client B to cancel purchase (MT 598-117 and then MT 598-122) 2. Generate Settlement Order for Broker D (purchase) to replace failing trade for Client B 3.Generate Settlement Orders to move purchase from Broker D ROS settlement account to Broker C’s Reverse Sub account 4.Hold margin for original failing deal – Client A Sale 5.Generate message to BDA with defaulting and non-defaulting transaction details S P 100 AAA R500 (4) S P S P 100 AAA R500 0 100 AAA R500(598-113) 100 AAA (3) R1,000 (598-113) R500 Compulsory Reverse Substitution 100 AAA R1,000 0 BDA to cancel original Contract Note 100 AAA (1) R1,000 (598-122) S P 100 AAA (3) R1,000(598-113) 100 AAA (2) R1,000 (598-113) 0 Non-Controlled Client Acct Client A Non-Controlled Client Acct Client B Reverse Subs Acct Broker C ROS suspense Acct Broker D High-level flows Fails Management

24. 24 ECS will: 1.Generate Settlement Orders for future settlement date 2.Return Margin held for original failing deal (Client A sale) once settled 3.Generate message to BDA with defaulting and non-defaulting transaction details including future settlement date High-level flows Fails Management S P 100 AAA R500 (2) S P S P 100 AAA R500 100 AAA R500 100 AAA R1,000 0 Broker C to Do manual Allocation 100 AAA R1,000 100 AAA R1,000 100 AAA (1) R1,000 (598-113) 100 AAA 100 AAA (1) R1,000 (598-113) 100 AAA R500 100 AAA R500 BDA to issue new Contract note for new Settlement date S P 100 AAA R1,000 100 AAA (2) R1,000 (598-113) 0 100 AAA (1) R1,000 (598-113) 100 AAA (1) R1,000 (598-113) Non-Controlled Client Acct Client A Non-Controlled Client Acct Client B Reverse Subs Acct Broker C ROS suspense Acct Broker D

25. 25  Re-Cap on impact on Controlled Client Settlements cash settlement flows -  T+1 – Nets created for CTL clients  T+1 – Funding instructions created for CTL clients  Current to ZZ  T+2 - Batch – All CTL Purchases and Sales are settled  T+2 – Funding instructions created for CTL clients  JSET to current (where CTL clients have cash on JSET)  Sweep created to transfer proceeds of Sales from ZZ to JSET (where CTL clients have sufficient demat holdings) Controlled clients settlements

26. 26  Re-Cap on impact on Controlled Client Settlements -  Keep in mind that based on how the settlements of CTL clients work, the trades would have been settled during T+2 batch ( i.e. DT/DL transactions which is what is currently been done on T+4)  When BDA receives the ECS message during T+3 for Fails Management, the transaction would be settled, i.e. Buy will know reflect as demat holding BDA can therefore not reverse the trade. How will this be resolved? Controlled clients settlements (cont.)

27. 27  Re-Cap on impact on Controlled Client Settlements -  Move all CTL Client Purchases settlements that will happen during EOD T+2, to be done real-time on S (Settlement day)  BDA currently (T+5 Settlement cycle) receive settlement messages from ECS when CTL nets are settled, however due to the fact that BDA settles CTL client trades during T+4 batch, these messages are ignored  BDA will be changed to only settle CTL client purchases on Settlement day based on confirmation from ECS that the CTL nets have been settled  ECS creates orders in different groups (per ISIN/per trade type) Controlled clients settlements – the changes

28. 28  Re-Cap on impact on Controlled Client Settlements -  If a group is settled, none of the transactions in the group can be Failed  When ECS sends confirmation of the groups that have settled, BDA will then in real-time on S, create the DT/DL to settle all trades in that group  For the settlement groups for which settlement confirmation was not received from ECS, BDA will leave these transactions open i.e. as open Buy and Sell’s.  If a transaction then needs to be Failed, BDA will be able to reverse the trade for non-defaulting party. Controlled clients settlements – the changes (cont.)

29. 29  The Funding of CTL client purchases will still be done EOD T+1. No impact to the timing of the funding for when a trade is rolled or failed  If a CTL purchases is reversed on S, the purchase amount funded, will be in the members ZZ account  As members have standing instructions to clear ZZ, the amount funded for the purchase will automatically be cleared back to members Current account  If a purchase of the non defaulting must be rolled and the purchase was ‘Freed’, BDA will reverse the Free before the purchase is reversed  When the new trade with the new settlement date is created back to the CTL client, BDA will automatically Free the purchase. This will ensure there is Zero impact to the Sweep as it will be an in/out movement between JSET and members current account. Controlled clients – cash settlement flows

30. 30  The Sweep for the proceeds of sales will still be created EOD T+2  The Sweep for the freed purchases to be swept back from JSET to Current bank will still be created EOD T+2  If a Purchase is reversed on S, any Funds moved EOD T+2 from JSET to member Current Bank will be reversed in the EOD on T+3 (S) as a retro sweep  We do not anticipate that a Sale will be a non defaulting trade as this will mean that a Purchases could not be funded by the member. Controlled clients – cash settlement flows (cont.)

31. 31  Transactions on BDA Transactions on BDA

32. 32  New BDA Accounts  RoS – Rolling Of Settlements – 40981  Fails Trade Management Balancing Account (FTMP) - 40155  To ensure BDA balances across both members. Very similar to 40154 in BDA.  Prop Failed Trade account – 40984 (DA)  If a Prop trade has been elected as a Rolling trade, BDA will post entries to this new Prop account i.s.o.using the actual Prop account/s.  Accounting entries in BDA for Fails Management and Rolling of Settlement  1500 AAA @ R1.10 = R1650.00  Total Charges = R150.00 Rolling of settlement

33. 33  Defaulting Broker  Compulsory Reverse Substitution (CRS) batch resulted in NCTL deal being reversed to 40980 and 40360 (Prop Netting) as per current processing Rolling of settlement (cont.)

34. 34 Fails Management entries for non controlled accounts  Rolling of Settlement - NCTL  Entries 1 - 4 - Reversal of NCTL Trade for Non Defaulting Broker  Entry 1 - NCTL deal is reversed to 40981 ( New RoS account)  Entry 2 – Charges are reversed in GL  Entry 3 – Settlement reversed in 40600 (NCTL Substitution)  Entry 4 – New Settlement in 40360 (Prop Netting)

35. 35  Entries 5 - 8  Reflects the entries for rolling the trade between Non-Defaulting Broker & Defaulting Broker  To ensure BDA balances to zero sum across both brokers  Non Defaulting Broker  Entry 5 – Trade is moved from the Non Defaulting Broker to the Defaulting Broker. BDA Creates entries between the RoS (40981) to new balancing account (40155) to account to reflect this move  Entry 6 – Entry to reflect new settlement in 40360 (Prop Netting) for entry 5. This is to ensure settlement nets to zero for the same settlement date  Entry 6 to FTMP account is purely to balance BDA and does not update Netting  At this point the settlement = Zero on Prop Netting Fails Management entries for non controlled accounts (cont.)

36. 36  Defaulting Broker  Entry 7 – The non defaulting trade is created in the defaulting broker. Trade is created between RoS (40981) and balancing account (40155).  Entry 8 – Reflects the settlement created in 40360 (Prop netting)  At this point, both non defaulting and defaulting brokers balances netting to zero.  Defaulting Broker (Blue)  Entry 9 – This is the new trade that is created for the roll. Entry between RoS and FTMP.  Entry 10 – The settlement entry created to 40360 (Prop Netting)  At this point the FTMP account = Zero and the RoS balance to Zero.  The new Trade created in entry 9 will have a new settlement and will be created a T on the day it is created. Fails Management entries for non controlled accounts (cont.)

37. 37  Entries 9 -12 reflect the new rolled trade with new settlement date for the Defaulting broker  Non Defaulting Broker (Blue)  Entry 11 – This is the new trade that is created for the RoS 40981. Balancing entry to FTMP 40155  Entry 12 – This is the settlement entry to 40360 (Prop Netting)  At this point the FTMP account = Zero and the RoS balance to Zero.  The new Trade created in entry 9 will have a new settlement and will be created a T on the day it is created. Fails Management entries for non controlled accounts (cont.)

38. 38  Entries 13 -15 reflect the new rolled trade with new settlement date for the Non Defaulting Broker  Non Defaulting Broker (Green)  Entry 13 – This is the new trade that is created back to the NCTL client with the new settlement date. This is between RoS and NCTL client account  Entry 14 – The settlement entry created to 40360 (Prop Netting) on the back of entry 13  At this point the FTMP account = Zero and the RoS balance to Zero.  Entry 15 – Settlement to 40600 for new NCTL trade. On the back of entry 13  Entry 16 – Charges to GL account. Fails Management entries for non controlled accounts (cont.)

39. 39  Rolling of Settlement - CTL  Entries 1 - 4 - Reversal of CTL Trade for Non Defaulting Broker  Entry 1 - CTL deal is reversed to 40981 (New RoS account)  Entry 2 – Charges are reversed in GL  Entry 3 – Settlement reversed in 42360 (CTL Netting)  Entry 4 – New Settlement in 40360 (Prop Netting)  Entries 5 - 8  Reflects the entries for rolling the trade between Non-Defaulting Broker & Defaulting Broker  To ensure BDA balances to zero sum across both brokers Fails Management entries for controlled accounts

40. 40  Non Defaulting Broker  Entry 5 – Trade is moved from the Non Defaulting Broker to the Defaulting Broker. BDA Creates entries between the RoS account (40981) to new FTMP balancing account (40155) to account to reflect this move  Entry 6 – Entry to reflect new settlement in 40360 (Prop Netting) for entry 5. This is to ensure settlement nets to zero for the same settlement date  Entry 6 to FTMP balancing account (40155) is purely to balance BDA and does not update Netting  At this point the settlement = Zero on Prop Netting Fails Management entries for controlled accounts (cont.)

41. 41  Defaulting Broker  Entry 7 – The non defaulting trade is created in the defaulting broker. Trade is created between RoS account (40981) and FTMP balancing account (40155).  Entry 8 – Reflects the settlement created in 40360 (Prop netting)  At this point, both non defaulting and defaulting brokers balances netting to zero. Fails Management entries for controlled accounts (cont.)

42. 42  Entries 9 -12 reflect the new rolled trade with new settlement date for the Defaulting broker  Defaulting Broker (Blue)  Entry 9 – This is the new trade that is created for the roll. Entry between RoS account (40981) and FTMP balancing account (40155)  Entry 10 – The settlement entry created to 40360 (Prop Netting). On the back of entry 9  At this point the FTMP account = Zero and the RoS balance to Zero  The new Trade created in entry 9 will have a new settlement and will be created as T on the day it is created. Fails Management entries for controlled accounts (cont.)

43. 43  Entries 13 -15 reflect the new rolled trade with new settlement date for the Non Defaulting Broker  Non Defaulting Broker (Green)  Entry 13 – This is the new trade that is created back to the CTL client with the new settlement date. This is between RoS account and CTL client account  Entry 14 – The settlement entry created to 40360 (Prop Netting) on the back of entry 13  At this point the FTMP account = Zero and the RoS balance to Zero.  Entry 15 – Settlement to 42360 for new NCTL trade. On the back of entry 13  Entry 16 – Charges to GL account. Fails Management entries for controlled accounts (cont.)

44. 44  Rolling of Settlement - PROP  Entries in BDA for Prop selected trades will not be reversed from the actual Prop account.  New BDA account 40984 created  Entries 1 - 3 - Reversal of a Prop Trade for Non Defaulting Broker  Entry 1 – Prop trade is created between RoS account (40981) and new RoS Prop Suspense account (40984)  Entry 2 – Settlement to 40360 for the RoS Prop Suspense account (40984)  Entry 3 – Settlement to 40360 for the RoS account (40981). Fails Management for entries for proprietary accounts

45. 45  Entries 4 - 7  Reflects the entries for rolling the trade between Non-Defaulting Broker & Defaulting Broker  To ensure BDA balances to zero sum across both brokers  Non Defaulting Broker  Entry 4 – Trade is moved from the Non Defaulting Broker to the Defaulting Broker. BDA Creates entries between the RoS account (40981) to new FTMP balancing account (40155) to reflect this move  Entry 5 – Entry to reflect new settlement in 40360 (Prop Netting) for entry 4. This is to ensure settlement nets to zero for the same settlement date  At this point the settlement = Zero on Prop Netting Fails Management for entries for proprietary accounts (cont.)

46. 46  Defaulting Broker  Entry 6 – The non defaulting trade is created in the defaulting broker. Trade is created between RoS (40981) and FTMP balancing account (40155).  Entry 7 – Reflects the settlement created in 40360 (Prop netting)  At this point, both non defaulting and defaulting brokers balances netting to zero. Fails Management for entries for proprietary accounts (cont.)

47. 47  Entries 8 -11 reflect the new rolled trade with new settlement date for the Defaulting broker  Defaulting Broker (Blue)  Entry 8 – This is the new trade that is created for the roll. Entry between RoS account (40981) and FTMP balancing account (40155)  Entry 9 – The settlement entry created to 40360 (Prop Netting). On the back of entry 8  At this point the FTMP balancing account (40155) = Zero and the RoS account (40981) balance to Zero  The new Trade created in entry 8 will have a new settlement and will be created as T on the day it is created. Fails Management for entries for proprietary accounts (cont.)

48. 48  Entries 12 -14 reflect the new rolled trade with new settlement date for the Non Defaulting Broker  Non Defaulting Broker (Green)  Entry 12 – This is the new trade that is created back to the Ros Prop Suspense account (40984) with the new settlement date. This is between RoS account (40981) and Ros Prop Suspense account (40984)  Entries 13 & 14 – The settlement entries created to 40360 (Prop Netting) on the back of entry 12  At this point the FTMP balancing account (40155) = Zero and the RoS balance account (40981) balances to Zero. Fails Management for entries for proprietary accounts (cont.)

49. 49  Non Defaulting Broker  Members need to be aware of P&L on Prop accounts as the rolling for a Prop trade is done against the new RoS Prop Suspense account (40984) and not any actual Prop accounts Fails Management for entries for proprietary accounts (cont.)

50. 50  Other BDA changes for T+3 -  Account Transfers and Portfolio Moves – automation to CSDPs  Go-live date for BDA automation by end of 2015  SLB & Collateral Upload  Go-live data by end of 2015 Other automation on BDA

51. 51 Margin under T+3  Under T+3 settlement the JSE will margin at EOD T+1 (collect on morning of T+2 respectively) – 35 to 40% of trades will be margined – figures depending on how market practice will adjust  Margin will be retained in the case of Fails Management and returned on final settlement of the transaction -  Rolling of Settlement  Retransactions  Compensation

52. 52 Change in practice  JSE has moved to real-time systems – members may do allocations on a real-time basis on T and commits to flow on T  Market practice will change – Investors will send instructions and CSDPs will commit on T or T+1

53. 53 Commits statistics

54. 54 New status intimations  New MT 548 - Reasons for uncommits  No securities  No clients instructions  Timings - EOD T; Real-time T+1; and Real-time T+2.

55. 55 Fractions and spreadsheets  Raised in 2009  Recently approved at CSDP Forum  Investigating implementing before T+3 Phase III  Preferred option as previously agreed  VWAP on LDT+1 less 10% (for market movements) used for fraction payment;  JSE to announce rate so everyone uses same rate; and  Surplus shares sold by participant / broker to cover pay out.  Spreadsheets will remain for  IPO’s;  Excess Take Up; and  Dual listed companies where home Exchanges regulations prevail.

56. 56 Freezing of registers  Dual Listed companies  Freeze registers once currency conversion is booked – aligned to JSEs Listing Requirements  Securities can’t move between registers – creates settlement problems  Change – currency conversion on LDT-1 and announcement to the market

57. 57 Migration WTFMTWTFMT TT+1T+2CT+3T+4T+5 TT+1OT+2T+3T+4T+5 TNT+1T+2T+3T+4T+5 VTT+1T+2T+3CA ETT+1T+2T+3CA RTT+1T+2T+3 STT+1T+2T+3 ITT+1T+2 O N LDTRD/RDPD/PD

58. 58 Migration assumptions  Limit amount of Corporate Actions (including IPO’s/private placements) if possible  Move to a RD-3 LDT date – no LDT on Friday of conversion  Jobbing across settlement days – warn members about SLBs and funding for a period of time  Resources will be available across the market for 2 weeks after go-live to manage issues  Migration will not take place over a month-end  Migration will not take place over a futures close-out

59. 59 Phase 3 timeline Q1Q2Q4Q3Q2 2015 2016 2014 Q3 Q1 Q4 Internal Analysis Vendor documentation and development Internal development documentation Internal Development SYT (7 iterations) SIT (Internal – 2 Cycles) SIT (External – 3 Cycles)UAT (2 Cycles) Regression Cycle User Readiness We have communicated to the market that we aim to go-live with T+3 between May and July 2016 Go-live: May-July 2016 Go-live: May-July 2016 59

60. 60 T+3 Phase 3 way forward  Achievement of the agreed project milestones, as agreed with the market  Strate, CSDP, Fund Managers and member participation in testing  Successful close-out of all planned testing cycles – including migration testing  Successful close-out of the documented Issue list to T+3 migration  Training and embedding of the revised processes

61. 61 Documentation  Securities Lending Association of South Africa (SASLA):  Creating paraphernalia for Securities lending and borrowing in South Africa  Creating paraphernalia for Corporate Action impacts on securities lending and borrowing  Creating paraphernalia for Dividend Withholding Tax on securities lending and borrowing  Workshops (global and local) with existing and potentially new lenders:  To encourage more lenders  To educate on above – corporate actions, etc.  Workshops for foreign clients:  Discuss removals and borrowing shares to ensure settlement

62. 62 Documentation (cont.)  Transfer Secretaries:  Document the removal process per country  Consider further automation around the removals  Workshops / meetings with foreign Transfer Secretaries :  Educate on the move to T+3 – explain what the impact would be if there are delays with the removals  Automation around the removals  Issuers :  Educate issuers (local and global) on the move to T+3  Updates on changes to JSE Listing Requirements  Updates on changes to Strate’s Rules and Directives relating to Issuers

63. 63 Documentation (cont.)  National Markets Practice Group (NMPG):  Document the local ISO 15022 standards on SMPG  Encourage more automation using ISO 15022 / 20022  Strate:  Provide an overview of changes to Strate’s Rules and Directives  Document all Corporate Actions processes for South Africa :  Retail - a dummies guide  Institutional – ISO15022 automation  JSE:  Provide an overview of changes to the JSE’s Rules and Directives  Provide an overview of changes to the JSE’s Listing Requirements  Document Settlement Obligations for clients and members

64. 64  BND data clean up -  On 24 September 2014 the JSE made members aware of the issues raised by Strate around the quality of client data  There concerns was driven by the Companies Act, the Financial Markets Act and Strate’s Rules and Directives  Main issues raised by Strate is around the client name and client address as this has biggest impact with Issuers being able to communicate with shareholders  Members will be required to clean up there data Beneficial downloads

65. 65  BND data clean up -  The JSE will be issuing a communication in this regard as there could e.g. be FICA implications if members change a client address  One of our members firms have informed the JSE that they have been using a service provider to assist them with cleaning up their client reference data  They requested that I share this with members if anyone else is interested Beneficial downloads (cont.)

66. 66 Questions