Joint Communication 5 of 2023: Regulatory Reporting for Margin Requirements on Non-Centrally Cleared OTC Derivatives

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JOINT COMMUNICATION 5 OF 2023
REGULATORY REPORTING IN TERMS OF JOINT STANDARD 2 OF 2020 – MARGIN REQUIREMENTS FOR NON-CENTRALLY CLEARED OVER THE COUNTER DERIVATIVE TRANSACTIONS On 31 August 2022, the Financial Sector Conduct Authority and the Prudential Authority (the Authorities) published the Joint Discussion Document1 on regulatory reporting requirements applicable to providers and counterparties in terms of Joint Standard 2 of 2020 on Margin Requirements for non-centrally cleared over the counter derivative transactions (Joint Standard). Comments were invited from all interested persons. In terms of paragraphs 6A(1) and (2) of the Joint Standard, the Authorities may determine regulatory reporting requirements for providers and counterparties through a notice on the their respective websites. The purpose of this Joint Communication is to provide an update on the regulatory reporting templates and related requirements. The Authorities, at a future date and through a Joint Notice, intend to issue the determination of the form, manner, and frequency of the regulatory reporting requirements as well as the date by which the regulatory reporting return must be submitted. To allow providers and counterparties sufficient time to prepare for the implementation of the reporting requirements, the Authorities hereby communicate the reporting metrics that will be used in the reporting template. Annexure A outlines the information to be reported to the Authorities in terms of paragraphs 6A(1) and (2) of the Joint Standard. This information must be reported by both a provider that enters into non-centrally cleared over the counter derivative transactions with a counterparty or a foreign counterparty, and a financial institution that is a counterparty as defined in Joint Standard 2 of 2020. This Joint Communication is available on the websites of the Authorities at www.fsca.co.za and www.resbank.co.za. Requests for further information about this Joint Communication, the Joint Discussion Document, and the Joint Standard may be submitted via email to queries.otc@fsca.co.za and marginrequirements@resbank.co.za. 1 See: Prudential Authority website at https://www.resbank.co.za/content/dam/sarb/publications/prudential￾authority/pa-public-awareness/covid-19-response/2022/joint-communication-2-of￾2022/Joint%20Discussion%20Document%20_Eligible%20collateral%20and%20regulatory%20reporting%20requi rements%20for%20publication%20to%20PA.pdf and on Financial Sector Conduct Authority website at https://www.fsca.co.za/Regulatory%20Frameworks/Documents%20for%20Consultation/Joint%20Discussion%20 Document%E2%80%93Expansion%20of%20Eligible%20Collateral%20Types%20and%20Regulatory%20Reporti ng%20Requirements.zip

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Unathi Kamlana Fundi Tshazibana
Commissioner Chief Executive Officer
FINANCIAL SECTOR CONDUCT AUTHORITY PRUDENTIAL AUTHORITY DATE: DATE:

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Annexure A-regulatory reporting metrics