Please note that as from 11 July 2016, the JSE will be shortening the settlement cycle for equity transactions, affecting the dividend payment dates of investors receiving monthly dividends from Ecsponent. The shorter settlement cycle will also change the existing dividend payment calendars indicating on which dates payments will take place.

The new settlement cycle will move from the current T+5 cycle to a new shorter T+3 cycle, where T+3 refers to the number of business days that elapse from the day on which a transaction takes place, to the day on which the transaction must be settled. In this video, the JSE’s Dr Leila Fourie, Diretor, Post-Trade and Information Services, explained to CNBC Africa what the advantages of this change are.

Trades that take place in the week preceding 11 July will be settled under a T+5 framework while trades taking place after this date will be settled on a T+3 time-frame. While the JSE is not anticipating any major problems, it has set aside 18 July as a backup date.

The move stems from an attempt by the Financial Services Board, which regulates certain activities of the JSE, to align South Africa with the global effort to shorten settlement times and to comply with the principles of the International Organisation of Securities Commissions.

The shorter settlement cycle will improve liquidity in the South African market and will bring additional transactions from asset managers which will increase their revenue stream. It will also improve the credibility and operational efficiency of our market and will assist to make South Africa an attractive investment destination.

 

The new dividend payment calendar is as follows:

2016 Dividend payment calendar

2016 Cut-off date Payment date Days in Cycle
May 08-May-16 16-May-16 28
June 05-Jun-16 13-Jun-16 28
July 03-Jul-16 11-Jul-16 28
August 09-Aug-16 15-Aug-16 37
September 13-Sep-16 19-Sep-16 35
October 11-Oct-16 17-Oct-16 28
November 08-Nov-16 14-Nov-16 28
December 12-Dec-16 19-Dec-16 34