Regulatory Alerts2021-06-09
Joint Communication 2 of 2021: Effective Date for Margin Requirements on Non-Centrally Cleared OTC Derivatives
The Financial Sector Conduct Authority and Prudential Authority have designated 16 August 2021 as the effective date for Joint Standard 2 of 2020, which establishes margin requirements for non-centrally cleared over-the-counter derivative transactions. Published through Joint Notice 1 of 2021, this determination activates the regulatory framework under the Financial Sector Regulation Act and Financial Markets Act for all relevant market participants. The finalized rules are now accessible on the regulators' websites, with operational compliance and further inquiries directed to their designated contact channels.
1 Financial Markets Act, 2012 Financial Sector Regulation Act, 2017 Joint Communication 2 of 2021 Determination of the effective date: Joint Standard 2 of 2020 - Margin requirements for noncentrally cleared over-the-counter derivative transactions On 2 June 2020, the Financial Sector Conduct Authority and the Prudential Authority (the Authorities) published a joint standard relating to the margin requirements for non-centrally cleared over-thecounter derivative transactions1 (Joint Standard). In terms of paragraph 7 of the Joint Standard, the Joint Standard comes into effect on a date to be determined by the Authorities. The purpose of this communication is to notify all interested persons that today the Authorities published Joint Notice 1 of 2021, determining the effective date of the Joint Standard as 16 August 2021. The Joint Notice is available on the websites of the Authorities at www.fsca.co.za and www.resbank.co.za. Requests for further information about the Joint Communication, Joint Notice or Joint Standard may be submitted via email to FSCA.RFDStandards@fsca.co.za, PA-Standards@resbank.co.za, and PA_RSD-MarketRisk@resbank.co.za. Unathi Kamlana Kuben Naidoo Commissioner: Deputy Governor and CEO: Prudential Authority FINANCIAL SECTOR CONDUCT AUTHORITY PRUDENTIAL AUTHORITY DATE: 2021-06-09