Processes and
Procedures for issuing of
ISINs for Unlisted
Securities
Created by
Approved by
Date
Versions
: Brett Kotze
: SWC
: 26 July 2006
: 1.00 Final
TABLE OF CONTENTS
1.
Version Control .................................................................................................3
2.
References .........................................................................................................3
3.
Introduction .......................................................................................................4
4.
Processes and procedures ...............................................................................5
4.1
Validation of data on the schedule
5
4.2
Request for ISIN
5
5.
Annexure A Template........................................................................................8
Process and Procedures for Unlisted ISINs
Page 2 of 8
12 July 2006
1.
Version Control
Date
Author
Version
Reason
for
changes
12 July 2006
Brett Kotze
0.01 Draft
18 July 2006
Brett Kotze
0.02 Draft
20 July 2006
Brett Kotze
0.03 Draft
26 July 2006
Brett Kotze
1.00 Final
Creation of
document
Updated with internal
comments
Updated with
comments from
STRATE
Moved to Final
Author
Version
Name of Document
2.
Date
References
Process and Procedures for Unlisted ISINs
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12 July 2006
3.
Introduction
In terms of the JSE’s agreement with the Association of National Numbering Agencies (ANNA)
the JSE is the National Numbering Agency (NNA) for ISINs for all financial instruments in South
Africa. ISINs have widely been accepted by the global markets for identification of all financial
instruments. In South Africa, STRATE uses solely ISINs for identifying the securities (currently
equities and expanding to money market instruments) on their systems for settlement and the
CSDPs utilise the ISINs for reporting to their institutional clients.
The JSE was approached by STRATE, the CSDPs and Investment Managers enquiring if the
JSE could offer a service for the issuing of ISINs for Unlisted Instruments. Investigation at the
time revealed that due to the CSDPs system requirements and institutional client demand from
a reporting perspective, CSDPs were creating dummy codes and updating their systems with
dummy codes. The following problems arose due to the dummy codes:

That the dummy code did not uniquely identify the instrument and where institutional
clients held portfolios with different CSDPs with the same unlisted instruments, different
dummy codes were applied which was difficult for the institutions to update their
systems; and
Different methodologies were applied by the CSDPs for the generation of the dummy
code.
Due to the above requests from STRATE, CSDPs and Investment Managers the JSE has
created a manual process based on a excel spreadsheet as an interim solution for the issuing
of ISINs for Unlisted securities. It is the JSE’s intention to automate this in the Reference Data
System (RDS) under Project Orion at a later stage. The purpose of this document is to
document the processes and procedures relating to the manual issuing of ISINs for unlisted
securities.
The agreement for issuing of ISINs for Unlisted securities is restricted to Proprietary Limited
and Limited companies and only includes shares in such company’s. It does not include debt
instruments, trusts, etc. This will be investigated under a separate phase.
Process and Procedures for Unlisted ISINs
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12 July 2006
4.
Processes and procedures
4.1
Validation of data on the schedule
4.1.1
An updated Unlisted ISIN schedule, sorted alphabetically by company, will be sent to
STRATE by the JSE every Friday, or the next working day if Friday is a public holiday.
The schedule will include the status of the ISIN which status’s will be either “Active” or
“Cancelled” or “Terminated”;
4.1.2
STRATE on receipt of the schedule will forward same to all CSDPs;
4.1.3
The CSDPs will review the schedule to pick up any errors and notify STRATE of same;
and
4.1.4
STRATE will advise the JSE of any errors, as notified by the CSDPs, and the JSE will
correct the schedule which will be reflected on the schedule sent out on the next Friday
4.2
Request for ISIN
4.2.1
Prior to requesting an ISIN the CSDP must go through the schedule, as noted under
paragraph 4.1, and ensure that an ISIN has not already been issued;
4.2.2
Once satisfied that an ISIN has not been issued, the template, as per Annexure A,
must be completed. All fields as noted as mandatory must be completed;
4.2.3
Once completed the template must be forward to STRATE, e-mail address
strateinvestors@strate.co.za;
4.2.4
On receipt of the template, STRATE will validate the template to ensure all mandatory
fields have been completed and check against the schedule, as noted under paragraph
4.1, to ensure that an ISIN has not already been issued;
4.2.5
In the case where the following has taken place the template will be rejected back to
the CSDP by STRATE:4.2.5.1 Mandatory fields have not been completed;
4.2.5.2 The ISIN request is not for a Proprietary Limited or Limited Company or for
shares; and
4.2.5.3 ISIN already issued.
4.2.6
Once satisfied, STRATE will forward the template to the JSE, e-mail address
unlistedisins@jse.co.za;
4.2.7
On receipt of the e-mail and template the JSE will acknowledge receipt of the e-mail
and template within 15 minutes between the working hours of 08h00 and 17h00 on any
business day. E-mails and templates received after 17h00 or on weekends will only be
acknowledged within 15 minutes of the start of the next business day.i.e. 08h15;
4.2.8
The JSE will validate the template to ensure all mandatory fields have been completed
and check against the schedule, as noted under paragraph 4.1, to ensure that an ISIN
has not already been issued;
4.2.9
In the case where the following has taken place the template will be rejected back to
the STRATE by the JSE:4.2.9.1 Mandatory fields have not be completed;
4.2.9.2 The ISIN request is not for a Proprietary Limited or Limited Company or for
shares; and
4.2.9.3 ISIN already issued.
Process and Procedures for Unlisted ISINs
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12 July 2006
4.2.10 Once satisfied the JSE will issue the ISIN. This will be done within 1 hour between the
working hours of 08h00 and 17h00 on any business day. Where e-mails and templates
are received after 17h00 or on weekends the ISIN will only be issued within 1 hour of
the start of the next business day.i.e. 09h00;
4.2.11 The template will be returned back to STRATE with the field for the ISIN completed
accordingly;
4.2.12 STRATE will in turn send the template to all CSDPs so that they are aware of the ISIN
that has been issued; and
4.2.13 The JSE will update the schedule, as noted under paragraph 4.1, and send out the
schedule on the next Friday, or the next working day if the Friday is a public holiday.
4.3
Amendment to a previously issued ISIN
4.3.2
The CSDP will send the same template as received from STRATE with the Unlisted
ISIN number back to STRATE via e-mail, e-mail address strateinvestors@strate.co.za,
with the applicable field, as per Annexure A, marked as “Amendment”. The details of
what is being amended must be highlighted;
4.3.3
STRATE will notify the other CSDPs of the pending amendment. If any of the other
CSDPs do not agree with the amendment they must notify STRATE within 24 hours of
their objection and reasons for the objection of the amendment. Should an objection be
received STRATE will reject the amendment request back to the originating CSDP with
details of the objection;
4.3.4
Subject to no objections being received from the CSDPs, STRATE will forward the
template to the JSE, e-mail address unlistedisins@jse.co.za, and copy the CSDPs so
that they are aware of the finalization of the amendment;
4.3.5
On receipt of the e-mail and template the JSE will acknowledge receipt of the e-mail
and template within 15 minutes between the working hours of 08h00 and 17h00 on any
business day. E-mails and templates received after 17h00 or on weekends will only be
acknowledged within 15 minutes of the start of the next business day.i.e. 08h15;
4.3.6
The JSE will update the schedule, as noted under paragraph 4.1, and send out the
schedule on the next Friday, or the next working day if the Friday is a public holiday
4.4
Cancellation of a previously issued ISIN
4.4.2
The CSDP will send the same template as received from STRATE with the Unlisted
ISIN number back to STRATE via e-mail, e-mail address strateinvestors@strate.co.za,
with the applicable field, as per Annexure A, marked as “Cancellation”;
4.4.3
STRATE will notify the other CSDPs of the pending cancellation. If any of the other
CSDPs do not agree with the cancellation they must notify STRATE within 24 hours of
their objection and reasons for the objection of the cancellation. Should an objection be
received STRATE will reject the cancellation request back to the originating CSDP with
details of the objection;
4.4.4
Subject to no objections being received from the CSDPs, STRATE will forward the
template to the JSE, e-mail address unlistedisins@jse.co.za and copy the CSDPs so
that they are aware of the finalization of the cancellation;
4.4.5
On receipt of the e-mail and template the JSE will acknowledge receipt of the e-mail
and template within 15 minutes between the working hours of 08h00 and 17h00 on any
business day. E-mails and templates received after 17h00 or on weekends will only be
acknowledged within 15 minutes of the start of the next business day.i.e. 08h15;
4.4.6
The JSE will update the schedule, as noted under paragraph 4.1, and send out the
schedule on the next Friday, or the next working day if the Friday is a public holiday.
Process and Procedures for Unlisted ISINs
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12 July 2006
4.5
Terminating of a company where a Unlisted ISIN has been issued
4.5.2
The CSDP will complete the template as per Annexure A with the applicable field
marked as “Terminating” and forward to STRATE via e-mail , e-mail address
strateinvestors@strate.co.za;
4.5.3
STRATE will notify the other CSDPs of the pending terminating. If any of the other
CSDPs do not agree with the terminating they must notify STRATE within 24 hours of
their objection and reasons for the objection of the terminating. Should an objection be
received STRATE will reject the terminating request back to the originating CSDP with
details of the objection;
4.5.4
Subject to no objections being received from the CSDPs, STRATE will forward the
template to the JSE, e-mail address unlistedisins@jse.co.za and copy the CSDPs so
that they are aware of the finalization of the “Termnating”;
4.5.5
On receipt of the e-mail and template the JSE will acknowledge receipt of the e-mail
and template within 15 minutes between the working hours of 08h00 and 17h00 on any
business day. E-mails and templates received after 17h00 or on weekends will only be
acknowledged within 15 minutes of the start of the next business day.i.e. 08h15;
4.5.6
The JSE will update the schedule, as noted under paragraph 4.1, and send out the
schedule on the next Friday, or the next working day if the Friday is a public holiday.
5.
Charges
The JSE will charge STRATE R1.00, not including VAT, for each ISIN issued. STRATE will
recover the charge and any other costs from the CSDP.
Process and Procedures for Unlisted ISINs
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12 July 2006
6.
Annexure A Template
No
Details
1
2
ISIN Number
New/Amendment/Cancellation/
Terminating
3
4
Company Long Name
Company Short Name
Mandatory
Mandatory
5
Alpha Instrument Code
Mandatory
6
Description of instrument
Mandatory
7
Transfer Secretary
Conditional
8
9
Effective Date
Terminating Date
Mandatory
Conditional
10
11
Company Postal Address
Company Business Address
Mandatory
Mandatory
12
Company Secretary Name
Conditional
13
Contact Telephone Number
Mandatory
14
Quantity on share certificate
Mandatory
Process and Procedures for Unlisted ISINs
Mandatory/Conditional
/ Optional
Conditional
Mandatory
Page 8 of 8
Comments
Will be issued by the JSE
If the request is a new request,
an amendment to a previous
request, a cancellation of a
previous request or a terminating
Long name of the company
Abbreviated
name
of
the
company
A recommended alpha code must
be included. The CSDP will add a
U in front of the alpha to signify
that it relates to an unlisted
security and to make it unique
across all instruments. If the
alpha code has been used for
another instrument the JSE
reserves the right to change the
alpha code.
This should default to shares until
we start issuing ISINs for other
instrument types
Transfer Secretary name if the
Issuing Company has appointed
a Transfer Secretary. If no
Transfer Secretary the Company
Secretary must be completed.
See point 12
Date of request
terminating date of the ISIN. Only
mandatory if the company is
terminating and the notification to
the
JSE
relates
to
the
terminating.
Postal address of the company
Business
address
of
the
company
Name of Company Secretary. If
no Transfer Secretary the
Company Secretary must be
completed. See point 7
Contact telephone number for the
issuing company
Quantity of shares as reflected on
the share certificate.
12 July 2006