New rules for R150 trillion market in South Africa

• The new rules for the R150 trillion market in South Africa will require over-the-counter derivatives to be centrally cleared by 2028.
• The proposed rules aim to improve transparency and reduce risk in the market, with the first OTC instruments subject to mandatory central clearing being rand-denominated interest-rate swaps and forward-rate agreements.
• The implementation of the new rules is expected to contribute to the stability of the financial system, with regulators globally undertaking similar measures to reduce the risk of a damaging counterparty failure.