South African regulators plan to require central clearing for OTC derivatives,
aiming to complete new rules within two years and for final rules to take effect
before 2028, the South African Reserve Bank said. The reform, intended to boost
transparency and reduce risk, hinges on central counterparties obtaining
licences and becoming operational. The Prudential Authority and the Financial
Sector Conduct Authority closed a consultation on June 5 on eligibility criteria
for central clearing; they propose ZAR‑denominated interest rate swaps and
forward rate agreements as the first mandatory‑clearing products, with other
contracts phased in based on industry feedback and market Data Talk. SARB data
show over R150 trillion of rand‑linked OTC derivatives notional traded
domestically and offshore (about US$9.3tn).
