The investor assumes risk against Satrix Managers (RF) Proprietary Limited (which we call counterparty risk) in respect to Fractional Share Rights (FSRs) only. The investor acquires FSRs through the issue of a contract for difference entered into directly with Satrix Managers (RF) Proprietary Limited as principal.
However the counterparty risk is reduced by Satrix Managers (RF) Proprietary Limited's risk and hedging policy which ensures that we are always 100% hedged in respect of market exposure from investors trading through the SatrixNOW platform.
Further to this, the SatrixNOW Terms and Conditions set out in detail the insolvency protections which ensure client monies and profit are protected. Whole securities belong to the investor and are kept separate from Satrix Managers (RF) Proprietary Limited's estate and assets in the same way as they would be through any other JSE stockbroker, and so are also protected on insolvency.