To Our Valued Clients,
Capitec Business has alerted us to some changes to the deal booking process which may affect you as a Capitec account holder. The reason being, they are striving to improve their payment processing timelines.
Please note that these changes take effect immediately, and are as follows:
Available Funds
Sufficient funds (trade amount + swift fees) must be available in your Capitec forex account before booking a Deal for value TODAY or TOMORROW. No value TODAY or TOMORROW Deal can be booked on the bank system if there are insufficient funds in the account.
SPOT Deals can be booked prior to funds reflecting, as this allows sufficient time for a transfer to be done to ensure the trade amount and swift fees are provided for before the value date.
Deal Liquidations
Deals must be settled on the value date or surrendered / extended where applicable by 10:00am on value date. Deals will no longer be allowed to remain open beyond the value date and communication sent after the 10:00am deadline on the value date will result in the deal being surrendered / extended at the prevailing Market Rate. When a deal is surrendered, it is cancelled at the market rate at the time of surrender. When a deal is extended, it is effectively cancelled at the market rate at the time of surrender and a new trade is placed at the new rate.
Deals Past Maturity
Deals may not remain open beyond maturity / value date. Deals that will not settle on the value date, must be surrendered / extended, where applicable, by no later than 10:00am on the value date. If a Deal is surrendered / extended, the cashflow implications / any losses will be for the client’s account. This is not at the scrutiny of Currency Assist but according to Reserve Bank rules enforced by Capitec Business
In order for the bank to ensure your trades are executed timeously and correctly, all the correct documents must be supplied for submission to Currency Assist prior to, or immediately after deal is booked. This will significantly improve the turnaround times on payments.
To ensure a consistent and efficient payment process, the booking of SPOT Deals (as opposed to Value Today/Tomorrow) is encouraged, to ensure that all payments meet the bank’s requirements.
Please feel free to reach out to any of our dealing room team for any further clarity or assistance.
Best regards,
Currency Assist Dealing Team