Regulatory Alerts2018-08-17
Draft FSRA Joint Standard on Margin Requirements for Non-Centrally Cleared OTC Derivative Transactions
The Financial Sector Conduct Authority and the Prudential Authority, with the concurrence of the South African Reserve Bank, have published a draft joint standard prescribing margin requirements for non-centrally cleared over-the-counter derivative transactions under the Financial Sector Regulation Act, 2017. The draft standard is issued pursuant to specific sections of the Act and establishes the regulatory framework for margin practices in bilateral derivative markets. The accompanying publication package includes a comments matrix, a statement outlining the standard's need and intended operation, and a formal notice inviting public submissions under section 98(1).
Financial Sector Regulation Act, 2017: Joint Communication 1 of 2018 – Draft FSRA Joint Standard on Margin Requirements for non-centrally cleared OTC derivative transactions 1 Ref.: 15/8 Financial Sector Regulation Act No 9 of 2017 Joint Communication 1 of 2018 DRAFT JOINT STANDARD ON MARGIN REQUIREMENTS FOR NON-CENTRALLY CLEARED OTC DERIVATIVE TRANSACTIONS The Financial Sector Conduct Authority and the Prudential Authority, acting with the concurrence of the South African Reserve Bank, today publish a draft joint standard which prescribes margin requirements for non-centrally cleared over-the-counter derivative transactions in terms of sections 106(1)(a), 106(2)(a) and (e) read with sections 107 and 109(2) of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSRA). The comments matrix, together with the draft Statement of the need for, expected impact and intended operation of the joint standard and the notice inviting submissions as contemplated in section 98(1) of the FSRA is also published with the draft joint standard. Requests for further information about the joint communication or draft joint standard may be submitted via email to michael.kabai@fsca.co.za or PA-Standards@resbank.co.za for the attention of Ms Lyle Horsley.