While the merger between the key South African securities and money market mechanisms – Strate, Unexcor and Central Depository (CD) – will see a reduction in licensing costs, the country`s market players have had little chance to celebrate. They have been hit with a nasty surprise from another quarter – a bill for an unavoidable technology upgrade.

Strate is the authorised central securities depository (CSD) and electronic settlement system for equities on the JSE Securities Exchange. Unexcor and the CD perform the equivalent services in the bond market. Their amalgamation promise synergies and cost savings in various areas.

But head of Strate IT, Shah Ebrahim, says brokers, fund managers and financial institutions have had some bad news from elsewhere. Belgian technology company Swift, which supplies the messaging standard for financial institutions globally, is moving onto a new system called SwiftNet. South Africa has to fall in line – and pay for the privilege.