THE REGULATION OF OVER-THE-COUNTER DERIVATIVES PRODUCTS
As a G20 member, South Africa is committed to reform its over-the-counter (OTC) derivatives market to reduce vulnerabilities and increase transparency. These reforms will impact both the providers and users of OTC derivatives products.
This course will help you understand the impact of the new regulatory environment for OTC derivatives and assist you to manage and mitigate the risk of non-compliance.
What you will learn:
· Why it was necessary to reform the regulation of OTC derivatives
· The international financial architecture and regulatory framework for OTC derivatives
· The principal elements of the regulatory environment for OTC derivatives in South Africa
· Specific OTC derivatives market reforms to improve transparency, mitigate systemic risk
and reduce market abuse including:
- · Reporting OTC derivatives contracts to trade repositories
· Trading standardised contracts on exchanges or electronic trading platforms
· Clearing standardised contracts through central counterparties
· Subjecting non-centrally cleared derivatives contracts to Basel III additional capital
and margining requirements to address their higher risks
· Other global regulatory measures such as legal entity identifiers and unique product
and transaction identifiers