Regulatory Alerts2022-02-08
Joint Roadmap for the Development of a Regulatory Framework for Central Clearing in South Africa
The Financial Sector Conduct Authority and Prudential Authority issued this joint roadmap to establish a comprehensive licensing and equivalence framework for central counterparty operations in South Africa. The document outlines a three-phase approach that finalizes local CCP licensing requirements, develops equivalence and exemption criteria for foreign market infrastructures, and formulates eligibility standards to mandate central clearing of over-the-counter derivative transactions. Implemented in alignment with G20 global reform commitments, the framework reduces systemic risk and enhances market transparency by ensuring standardized OTC derivatives are cleared through regulated CCPs or approved foreign equivalents.
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