Regulatory Alerts2025-10-03
Joint Standard 1 of 2025: Criteria for Exempting Central Counterparties and Trade Repositories from the FMA
The Prudential Authority and Financial Sector Conduct Authority issued Joint Standard 1 of 2025 to establish exemption criteria for foreign central counterparty and trade repository entities from specific Financial Markets Act provisions. The standard requires exempted entities to operate from equivalent jurisdictions, comply with prescribed regulatory benchmarks, and maintain information-sharing agreements, while clarifying that a local South African presence is not an absolute prerequisite. Following public consultation with three market participants, the Authorities confirmed no substantive changes to the draft framework, thereby enabling cross-border clearing services and supporting mandatory central clearing of over-the-counter derivatives in South Africa.