Open AccessIMPACT OF FAILURE OF A CENTRAL SECURITIES DEPOSITORY PARTICIPANT ON FINALITY AND IRREVOCABILITY OF SETTLEMENT OF SECURITIES
Author(s) -
Vivienne Lawack-Davids,
Lindi Coetzee
Publication year - 2021
Publication title -
obiter (port elizabeth. online)/obiter (port elizabeth)
Language(s) - English
Resource type - Journals
eISSN - 2709-555X
pISSN - 1682-5853
DOI - 10.17159/obiter.v30i3.12410
Subject(s) - settlement (finance) , business , recession , financial system , accounting , law and economics , finance , economics , macroeconomics , payment
In view of the current global meltdown and the recession in South Africa, the question arises whether the legal framework pertaining to finality of settlement of securities is sufficiently robust to cope with failure of a central securities participant. This article examines this question and highlights some of the problems that exist with regard to uncompleted contracts in the Strate (Share Transactions Totally Electronic) environment. The authors conclude with certain recommendations to overcome the identified problems.