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
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
BoE Announces Changes to Validation Rules for Form BTL
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
BCBS Proposes Changes to Process for Reviewing G-SIB Methodology
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.
