SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the settlements processes applicable to the financial markets 
SAQA US ID UNIT STANDARD TITLE
12889  Demonstrate an understanding of the settlements processes applicable to the financial markets 
ORIGINATOR
SGB HET Accountancy and Financial Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6  15 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Persons credited with this Unit Standard can describe the back office functions and are able to explain how and why the settlements process takes place. They are also able to assess the risk elements associated with settlements and describe the advantages of STRATE in this regard. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that the learner will have demonstrated their competence in the following unit standards: "Operate within the rules and directives of the Financial Markets Exchanges" and "Identify and control risk within the financial markets" before attempting this unit standard.

It is further assumed that they will have achieved mathematics at Grade 12 level or equivalent. 

UNIT STANDARD RANGE 
"Back Office Staff positions" includes
  • All Settlements positions
  • All Compliance positions

    "The workflow of a standard deal transaction" includes:
  • deal capture - includes entry, confirmation, netting, settlement, reconciliation
  • deal management - problem investigation and resolution
  • reporting - as required by the Exchange and by the organisation

    "Types of clients" includes:
  • managed clients
  • non-managed clients
  • bank clients
  • institutional clients
  • cash clients

    "Netting calculations" include:
  • settlement and close-out amounts
  • bilateral and multilateral netting procedures

    "The different types of clearing and payment systems" includes
  • EURO, GBP, USD and JPY

    "Settlements documentation requirements" include
  • reports
  • transaction registers and ledgers, e.g. scrip register, options register 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Describe the roles and responsibilities of the back office staff 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The back office staff positions for the organisation are identified and their roles broadly defined as per their job profiles. 

    ASSESSMENT CRITERION 2 
    2. The work relationships and requirements between front office and back office staff are described. 

    ASSESSMENT CRITERION 3 
    3. The workflow for a standard deal transaction is constructed. 

    SPECIFIC OUTCOME 2 
    Locate and apply the exchange rules and directives that apply to the settlements function 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The ethical and professional responsibilities of a Settlement Officer as outlined in the JSE Settlement Officer's Q & A are described. 

    ASSESSMENT CRITERION 2 
    2. The rules and directives relating to the role of a Custody and Settlements Member of the JSE are described. 

    ASSESSMENT CRITERION 3 
    3. The rules and directives applying to a Broking member (equities) of the JSE are described. 

    ASSESSMENT CRITERION 4 
    4. The procedures and controls, including Compliance requirements, ensuring accurate processing are explained. 

    ASSESSMENT CRITERION 5 
    5. The limits imposed on transactions are stated. 

    ASSESSMENT CRITERION 6 
    6. The documentation requirements relating to the settlements function are explained. 

    SPECIFIC OUTCOME 3 
    Identify and describe the processes applying to settlement transactions 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Routine issues are identified. 

    ASSESSMENT CRITERION 2 
    2. The sales process is described. 

    ASSESSMENT CRITERION 3 
    3. Types of clients and the rules relating to them are identified. 

    ASSESSMENT CRITERION 4 
    4. The Recording process is described. 

    ASSESSMENT CRITERION 5 
    5. The Matching and Netting process is described and basic netting calculations are performed. 

    ASSESSMENT CRITERION 6 
    6. The different types of Clearing and Payment systems are described, along with their specific risk elements. 

    ASSESSMENT CRITERION 7 
    7. Reconciliation and cash management, as well as the impact of different systems in revenue maximization is described. 

    ASSESSMENT CRITERION 8 
    8. The additional responsibilities involved in derivatives settlements are identified. 

    ASSESSMENT CRITERION 9 
    9. Issues specific to currency settlements procedures are described. 

    SPECIFIC OUTCOME 4 
    Demonstrate an understanding of electronic settlement systems in common use in South Africa 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Electronic and paper based settlement systems are differentiated. 

    ASSESSMENT CRITERION 2 
    2. The link between STRATE and SWIFT is explained. 

    ASSESSMENT CRITERION 3 
    3. The process of electronic settlement using STRATE is described. 

    ASSESSMENT CRITERION 4 
    4. The STRATE netting model is explained. 

    ASSESSMENT CRITERION 5 
    5. The features and benefits of STRATE are identified. 

    ASSESSMENT CRITERION 6 
    6. The material obligations of buyers and sellers for controlled and non-controlled clients in the context of STRATE settlements are explained. 

    ASSESSMENT CRITERION 7 
    7. The risk reduction advantages of STRATE are elaborated. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation and moderation:

    Accreditation for this Unit Standard shall be from the relevant Education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

    The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA
  • Training providers must be accredited by the relevant ETQA
  • Moderation should include both internal and external moderation where applicable
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    A demonstrated understanding of:
  • The terminology relating to the Financial Markets and instruments.
  • Terminology specific to the Settlements environment includes the following: cash root, client, contract note, contractual settlement, CSD participant, CSA, CSM, Failed Trade, Rolling Settlement, Scrip Root, Settlement Authority, Settlement Commitment, STRATE approved security, terminating transaction, trade date, T+1, T+2, T+3, T+4, T+5, uncertified securities, uncommitted settlement, balance receipt, certified transfer deed, letter of right, incidental accrual. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organization or community. For example there are usually a number of people working together in a settlements office, and they would need to work together effectively in order to complete the necessary processes. 

    UNIT STANDARD CCFO ORGANISING 
    Organize and manage oneself and one's activities responsibly and effectively. For example, as a team member, one should manage oneself effectively in order to play a meaningful role on the team and fulfil one's duties as part of the team responsibility. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and / or language skills in the modes of oral and / or written persuasion. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility towards the environment and health of others. 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Terminology:

    Terminology relating to the Financial Markets can be found in "Who owns Whom's Dictionary of Stock Market Terms" published by Who owns Whom/PSG Online in 2001. ISBN 1-919850-04-X.

    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds proscribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes.

    Domain:

    Financial Markets 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23653   National Diploma: Financial Markets  Level 6  NQF Level 06  Reregistered  2023-06-30  FASSET 
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Felix Risk Training Consultants 
    2. Full Value Financial Services (Pty) Ltd 
    3. Nedbank Ltd 
    4. The Academy of Financial Markets 
    5. The Facilitation Workshop 
    6. The Institute of Literacy Advancement 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.