SARB Consults on Margin Requirements for Uncleared OTC Derivatives
The Financial Sector Conduct Authority and the Prudential Authority (Authorities), acting in concurrence with SARB, are proposing the revised draft joint standard on margin requirements for non-centrally cleared over-the-counter (OTC) derivative transactions. Also published are the consultation report, draft supporting statement on expected impact, and notice inviting submissions as contemplated in section 98(1) of the Financial Sector Regulation Act of 2017 (Act No. 9 of 2017) (FSRA). Comments are requested by May 20, 2019.
Based on the public consultation process during 2018 and following further internal discussions between the Authorities on the joint standard, the Authorities have effected certain amendments to the joint standard. The proposed amendments to the joint standard are substantial and require further public consultation pursuant to section 99 of the FSRA. The Authorities have developed the joint standard in line with the BCBS-IOSCO Framework to give effect to South Africa's commitment to making the OTC derivatives market safer and more transparent. The joint standard is closely aligned with the international standard to create a level playing field among market participants. However, incorporating the international standard into the domestic regulatory framework must be done in a manner that takes into account the nature of the domestic legal framework and the local market conditions. The international standard has, therefore, been appropriately customized in the joint standard to account for the local context.
Related Links
- Joint Communication
- Notice Inviting Submissions
- Draft Joint Standard
- Draft Statement
- Comment Template
- Consultation Report
Comment Due Date: May 20, 2019
Keywords: Middle East and Africa, South Africa, Banking, Securities, Central Clearing, Margin Requirements, OTC Derivatives, SARB
Previous Article
EBA Opinion on Implementation of Deposit Guarantee Schemes DirectiveRelated Articles
HKMA Sets Out Regulatory Treatment for Personal Loan Guarantee Scheme
HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.
ECB Completes Targeted Review of Internal Models of Banks
ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.
PRA on Regulatory Treatment of Loans Under Mortgage Guarantee Scheme
PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.
FCA Consults on Rules and Reporting Forms for Investment Firms Regime
FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).
HMT and BoE Decide to Explore Central Bank Digital Currency in UK
HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.
EIOPA Sets Out Expectations on Use of Climate Risk Scenarios in ORSA
EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).
Bundesbank Updates AnaCredit Reporting Requirements
Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.
EC Sets Out Standards for MREL Reporting by Competent Authorities
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).
BCBS to Advance Work on Suptech, Climate Risk, and Basel Monitoring
BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
