TITLE: South Africa's Financial Regulators Publish Proposed Eligibility Criteria for Mandatory Central Clearing of Over-the-Counter Derivatives BODY: On April 7, 2026, the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) published a Joint Discussion Document for public consultation on proposed eligibility criteria for mandatory central clearing of over-the-counter (OTC) derivative transactions in South Africa. The Joint Discussion Document outlines the Authorities' proposals to advance implementation of mandatory central clearing in the South African OTC derivatives market. It sets out the proposed eligibility criteria that the FSCA and PA intend to apply when determining which OTC derivative transactions should be subject to mandatory central clearing requirements. The document identifies categories of OTC derivative transactions that may be suitable for mandatory central clearing, based on current data and information available to the Authorities. The framework aims to establish a structured approach to central clearing obligations while considering market conditions and transaction characteristics specific to the South African derivatives market. Stakeholders, including market participants, financial institutions, and other interested parties, are invited to submit comments on the proposed framework and transaction scope during the public consultation period. The consultation enables the Authorities to gather feedback on the eligibility criteria and transaction categories before finalising the mandatory central clearing requirements. Responses should be submitted to the FSCA and PA through their respective websites. The specific deadline for submissions should be confirmed on the Authorities' official websites where the Joint Discussion Document and supporting annexures are available. REFERENCES: Financial Sector Conduct Authority and Prudential Authority Joint Communication 2 of 2026

Joint Communication 2 of 2026 - Proposed eligibility criteria for the mandatory central clearing of over-the-counter derivative transactions for public consultation

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