Regulatory compliance in Post-Trade Services

There has been an upsurge in regulatory change in post-trade services worldwide over the past few years. The JSE has put in a lot of effort to ensure that it adheres to the latest global standards and legislative requirements.

The JSE’s Post-Trade Services team is still engaged in a CPSS-IOSCO certification initiative.

IOSCO Compliance

As a member of the G-20, South Africa (and its respective FMIs) is committed to comply with the principles and provisions of the CPSS–IOSCO report, as it is an integral part of the G 20’s efforts to enhance the stability and integrity of financial markets. Consequently, as part of its compliance obligations, JSE Clear is required to adhere to the requirements of the CPSS-IOSCO disclosure framework – one of the stipulations of this framework is that the outcomes of an FMI’s self-assessment should be structured for public disclosure.

Of the 24 principles that form part of the CPSS-IOSCO “Principles for Financial Market Infrastructures” report, only 18 are considered to be relevant to JSE Clear due to the nature of its operations. Having completed the self-assessment exercise, JSE Clear is rated as “Observed” across 16 of these principles, and deemed to be “Broadly Observed” in terms of the remaining 2 applicable principles.

As such, JSE Clear is thereby considered to be fully compliant with the requirements put forth by IOSCO for Central Counter Parties (CCPs). The documents containing JSE Clear’s detailed responses to the various questions tha​t make up the IOSCO self-​assessment (along with all associated reference documentation) has been submitted to the Financial Services Board (FSB) for their review and approval.

IOSCO Disclosure Framework

JSE Clear 2016 IOSCO Disclosure Document

FSB Approval of JSE Clear as a Qualifying Central Counterparty for Listed Derivatives

FSB_Approval_-_JSE_Clear_(Safcom).pdf​

ESMA Recognition

JSE Clear has been granted the status of a “Third-county CCP” (TCCP), meaning that it has been authorized to provide clearing services to market participants based in the EU. This project was undertaken in close collaboration with our local regulator the Financial Services Board (FSB), and we would like to thank them for the material role they played in the recognition process.

 ESMA recognition strengthens the global relevance of JSE Clear, and more importantly, ensures that multinational banks can continue to clear in the SA market. We see this as an important part in ensuring our local financial market meets global benchmarks and continues to promote financial stability and reducing systemic risk. This milestone will contribute towards South Africa’s credibility and will help to attract flows from abroad to SA. 

 Related Documents

 

 

CSD Participant Failure ManualCSD Participant Failure Manualhttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/CSD Participant Failure Manual.pdfpdf
JSE Clear Board CharterJSE Clear Board Charterhttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/JSE Clear Board Charter.pdfpdf
JSE Clear Stress Testing PolicyJSE Clear Stress Testing Policyhttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/JSE Clear Stress Testing Policy.pdfpdf
JSE Clearing House AgreementJSE Clearing House Agreementhttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/JSE Clearing House Agreement.pdfpdf
JSE Derivatives Margining Technical Spec V304JSE Derivatives Margining Technical Spec V304https://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/JSE Derivatives Margining Technical Spec V304.pdfpdf
JSE Membership Requirements Derivatives MarketJSE Membership Requirements Derivatives Markethttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/JSE Membership Requirements Derivatives Market.pdfpdf
SAFCOM Board Code of Ethics and ConductSAFCOM Board Code of Ethics and Conducthttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/SAFCOM Board Code of Ethics and Conduct.pdfpdf
SAFCOM Clearing Member Advisory Committee Mandate (2)SAFCOM Clearing Member Advisory Committee Mandate (2)https://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/SAFCOM Clearing Member Advisory Committee Mandate (2).pdfpdf
SAFCOM Default Process and ProceduresSAFCOM Default Process and Procedureshttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/SAFCOM Default Process and Procedures.pdfpdf
SAFCOM Intraday Margin CallsSAFCOM Intraday Margin Callshttps://www.jse.co.za/content/JSERulesPoliciesandRegulationItems/SAFCOM Intraday Margin Calls.pdfpdf

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