Joint Communication 2 of 2026 - Proposed eligibility criteria for mandatory central clearing of OTC derivatives

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Joint Communication 2 of 2026
Joint Discussion Document: Proposed eligibility criteria for the mandatory central clearing of over-the-counter derivative transactions – for public consultation

1. The purpose of this communication is to inform stakeholders that today the
   Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA), hereinafter referred to as the Authorities, published for public comment on their respective websites a Joint Discussion Document on the proposed eligibility criteria for the mandatory central clearing of over-the-counter (OTC) derivative transactions (Joint Discussion Document).
2. The objective of the Joint Discussion Document is to communicate proposals
   by the Authorities in relation to the following matters:
   (a) the eligibility criteria to be applied by the Authorities in determining which OTC derivative transactions must be subject to mandatory central clearing; and (b) the proposed OTC derivative transactions identified as potentially suitable for mandatory central clearing based on the current data and information available to the Authorities.
3. Upon conclusion of this consultation process, a determination of the Authorities’
   proposals on the eligibility criteria for the mandatory central clearing of OTC derivatives will be effected by way of a Joint Notice to be issued by the FSCA with the concurrence of the PA in terms of regulation 4(1) of the Financial Markets Act Regulations. 1
4. Furthermore, and as communicated in the Joint Discussion Document, the
   Authorities will prescribe, by a Joint Standard, the manner in which OTC derivative transactions will be cleared through a licensed central counterparty (CCP) or a licensed external CCP.
5. Following the evaluation of all relevant industry consultations and the
   consequential policy processes by the Authorities, mandatory clearing is expected to take effect once the Joint Standard is in effect and a licensed CCP or clearing house is operational. 1 Published under Government Notice R98 in Government Gazette No. 41433 of 9 February 2018 (FMA Regulations).

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6. All interested parties are hereby invited to submit comments on the proposals,
as set out in the Joint Discussion Document, by using the feedback template published alongside the Joint Discussion Document marked as Annexure A.
7. The Authorities expect all OTC derivative providers (ODPs) 2
to complete the questionnaire attached to the Joint Discussion Document marked as Annexure B.
8. Comments must be submitted to the Authorities via email at
queries.otc@fsca.co.za and PA-Standards@resbank.co.za by no later than 5 June 2026.
9. Any enquiries related to this Joint Communication or the Joint Discussion
Document may be submitted to the aforementioned email addresses. Unathi Kamlana Fundi Tshazibana Commissioner Chief Executive Officer Financial Sector Conduct Authority Prudential Authority Date: 31/03/2026 Date:
2 As defined in the FMA Regulations.