Most Read Contributor in South Africa, September 2016
On 21 July 2016, National Treasury released the third draft of
the regulations under the Financial Markets Act, 2012 (the
"Third Draft Regulations"). The previous
draft of the regulations was released in June 2015. The Third Draft
Regulations are, together with pending legislation, aimed at
progressing the financial sector reform strategy for South Africa.
This is in line with the country's commitment to the G20
obligations to make financial markets safer and to regulate
The Third Draft Regulations were accompanied by a number of
draft notices relating to OTC derivatives providers and trade
repositories. A new draft of the notice relating to margin
requirements for non-centrally cleared OTC derivatives, which is of
particular interest to participants in the South African
derivatives market, was not released.
The explanatory memorandum on the Third Draft
Regulations (July 2016) sets out a summary of the timeline for
implementation of the various areas of regulation forming the
financial sector reform strategy. According to the timeline:
the Third Draft Regulations, as may be amended, will be tabled
in Parliament and promulgated in the fourth quarter of 2016
OTC derivatives providers will become authorised and margin
requirements for non-centrally cleared OTC derivatives will be
trade reporting of all OTC derivatives will become mandatory in
the third quarter of 2017
a determination of which "vanilla" products will need
to be centrally cleared in the second half of 2017, with
determinations in respect of other asset classes following in the
second half of 2018
The deadline for comments on the Third Draft Regulations and draft
notices is 31 August 2016. Comments should be sent
via email to Petula Sihlali at email@example.com
with the subject title "FMA: Ministerial Regulations (Round
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Security in one form or another is given by people who transact with each other on a daily basis. The bigger the transaction, the greater the security required.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).