Standard Bank and Legae Peresec cement tie-up
Bank to clear derivatives of SA's largest stockbroker
Standard Bank has bagged a deal that will see it look after securities of the largest stockbroker in SA. The bank announced on Thursday that it has been awarded the domestic custody and derivatives clearing business of Legae Peresec.
The bank will be responsible for clearing derivatives of the largest stockbroker in the country on all trading platforms. Clearing happens after trading transactions are entered into to ensure that trades are settled correctly and in time.
Legae Peresec was formed from the merger of Peregrine Securities and SA’s oldest black stockbroker, Legae Securities, in February. At the time of the merger, Standard Bank reported that Legae Peresec had the largest market share on the JSE and derivatives markets by both value traded and volume.
The company serves institutional clients, asset managers, broker dealers and investment banks, among many others. Given its focus on equities, derivatives, exchange-traded funds and multiple currencies, the sheer volume of clearing it has to do will keep Standard Bank busy.
Being a provider of investor services in Africa with the capability of doing derivatives clearing in 15 countries, it is a task Standard Bank said it is confident it can take up with ease.
“Standard Bank’s leadership in the investor services business is built on a team rich with expertise and experience, consistent investment in technology solutions, people to support its client franchise and the development of capital markets in Africa,” the bank said.
The bank’s corporate and investment banking division, through investor services, is already settling over 40% of all securities transactions processed through the South African Central Securities Depository for listed securities (STRATE), which is used by the country’s two busiest exchanges, the JSE and A2X.
Standard Bank was the financier and adviser to Peregrine and Legae Securities during the merger that gave birth to Legae Peresec. The stockbroker said it saw the bank as a “natural partner” to support its brokerage business.