March 2012, National Treasury published the discussion document “Reducing the risks of over-the-counter derivatives in South Africa” to outline the proposed policy approach to regulating OTC derivative markets.
The Financial Service Conduct Authority (FSCA) has now published a report on the consultation undertaken during the making of Conduct Standard 1 of 2018 which sets out the criteria for OTC derivative providers to apply for authorisation.
This regulatory framework was developed jointly by National Treasury, the FSCA and the South African Reserve Bank.
The Conduct Standard addresses the following:
- The Criteria for Authorisation of OTC derivative providers;
- Licensing requirements and additional duties of a trade repository;
- Conduct Standards for OTC derivative providers;
- The reporting obligations in respect of transactions or positions in over-the-counter derivatives.
Because Conduct Standard 1 of 2018 has only recently been published, it was necessary for the FSCA to extend the period given to persons conducting the business of an OTC derivate provider to lodge application for authorisation to the FSCA to 28 January 2019.
Click on the links below to read the full documents: