Stephen Grootes speaks to Andre Cilliers, Currency Risk Specialist and Director at TreasuryONE, about South Africa’s plans to introduce mandatory central clearing for certain OTC derivatives by 2028.
Listen to the interview in the audio player below.
South Africa is moving towards mandatory central clearing for selected over-the-counter derivatives, with new rules expected to take effect in 2028.
The framework is designed to improve transparency in the derivatives market and reduce the risk of losses when a counterparty fails.
The reforms form part of South Africa’s broader post-2008 financial-market overhaul and could ultimately make derivatives trading more resilient to market shocks.
Rand-denominated interest-rate swaps and forward-rate agreements are expected to be among the first instruments covered by the new requirements.
The SARB says the rules will depend on an appropriate central counterparty being licensed and operational before market participants are required to comply.
South African and offshore trading in rand-linked OTC derivatives exceeds R150-trillion, highlighting the scale of the market exposed to the new framework.
The Prudential Authority and Financial Sector Conduct Authority plan to publish a joint standard for consultation between April 2027 and March 2028.
Speaking to Stephen Grootes on The Money Show, TreasuryONE currency risk specialist Andre Cilliers says central clearing could change how companies manage currency and interest-rate exposure, particularly through greater visibility of counterparty risk.
“It would take away some of that credit risk between counterparties, and the settlement would be in a safe and secure environment, regulated by an authority, and that would open up the market and more people would then be able to use these instruments.”
– Andre Cilliers, currency risk specialist – TreasuryONE
Scroll to the top of the article to listen to the full interview.
