It was only a matter of time before the JSE moved away from issuing gilt edged share certificates to embrace the universal move toward technology. With the new system called Strate, paper will no longer change hands. Stock transactions will simply be entered into a computerised register and the buy or sell transaction will be effected simultaneously.

The old process of settlement was rather tedious, because the stockbroker had to send your share certificate or scrip with a signed transfer deed to the transfer secretary of the company whose shares you traded. They then had to remove your name off the register and record the new owner’s name. After this task was completed a new certificate was issued. The entire process could take up to ten days.

Even though Strate offers speed and convenience, the old school are a little ruffled by this move. Many people who have large portfolios, built up over a number of years, feel that somehow their shares can get “lost in the system” as they have no physical proof other than a simple broker's note. Rob Turner from Tradek.com says that similar fears were raised when the banks introduced ATMs. He assures us that each time a transaction is effected the client will receive a broker's note and a statement of their account will be forwarded each month. Shareholders can still hold on to their paper share certificates, if they choose, but that could present future problems.

At the moment transfer secretaries are dematerialising shares for free but there will come a time that they will have to start charging for the service. In addition to potential costs it will take much longer for a person holding material share certificates to effect a sale. And with in the fast paced world of share trading they could lose out.

Eight central securities depositories have been set up to register all share ownership and sub registers will be kept by participants or (CSDP’s). Stockbrokers will appoint one of these to register your shares. You can use a CSDP of your choice and not necessarily the same one as your stockbroker appoints, however this is not advisable, as you become what is known as a non-controlled client. This may cause problems or delays in the dealing process.

Only a few organisations have moved over to Strate, so dual systems will probably be run until the end of the year. Experts recommend that you hand in your shares to your stockbroker as soon as possible for dematerialisation. This way you will not experience delays when you want to sell. All companies on the JSE will eventually be on the Strate system, and we simply have no option but to move with the times.

For those who still choose to resist the words of Frances Hodgson Burnett, author of The Secret Garden, may offer some comfort. “At first people refuse to believe that a strange new thing can be done, then they hope it can’t be done because it means seeing the garden a whole new way. Then they see it can be done. Then it was done and the world wonders why it was not done centuries before.” Yes it’s true, the only constant is change.