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Table of Contents
Financial Markets Act, 2012 (Act No. 19 of 2012)
Notice No. 70 of 2013
Act
Chapter I : Preliminary Provisions
1. Definitions and interpretation
1A. Relationship between Act and Financial Sector Regulation Act
2. Objects of Act
3. Application of Act and rules
4. Prohibitions and adherence to authorisation by authorised users, participants and clearing members
Chapter II : Preliminary Provisions
5. Powers of the Minister
6. Authority
6A. Criteria for recognition of external market infrastructures
6B. Withdrawal of recognition
6C. Principles of co-operation
Chapter III : Preliminary Provisions
Licensing of exchange
7. Application for exchange licence
8. Requirements applicable to applicant for exchange licence and licensed exchange
9. Licensing of exchange
Functions of licensed exchange
10. Functions of licensed exchange and power of Authority to assume responsibility for functions
11. Listing of securities
12. Removal of listing and suspension of trading
13. Application of amended listing requirements to previously listed securities
15. Maintenance of insurance, guarantee, compensation fund or other warranty
16. Funds of mutual exchange
Exchange rules
17. Requirements with which exchange rules must comply
14. Disclosure of information by issuers of listed securities
Authorised users
18. Restriction on borrowing against and repledging of securities belonging to other persons
19. Marking of or recording details of securities
20. Restriction on alienation of securities
21. Segregation of funds
22. Segregation of securities
General provisions in relation to listed securities
23. Use of designation "stockbroker" and related designations
24. Buying and selling listed securities
25. Reporting of transactions in listed securities
Chapter IV : Custody and Administration of Securities
26. Definition
Licensing of central securities depository
27. Application for central securities depository licence
28. Requirements applicable to applicant for central securities depository licence and licensed central securities depository
29. Licensing of central securities depository
Functions of licensed central securities depository
30. Functions of licensed central securities depository and power of Authority to assume responsibility for functions
Participant
31. Authorisation of participant
Duties of participant
32. Duties of participant
Uncertificated securities
33. Uncertificated securities
34. Duties of issuer of uncertificated securities
Depository rules
35. Requirements with which depository rules must comply
General provisions relating to custody and administration of securities
36. Registration of securities
37. Ownership of securities
38. Transfer of uncertificated securities or interest in uncertificated securities
39. Pledge or cession of uncertificated securities in securitatem debiti
40. Ranking of interests in securities
41. Acquisition by bona fide transferee
42. Withdrawal and delivery of securities
43. Records
44. Warranty and indemnity
45. Attachment
46. Effectiveness in insolvency
Chapter V : Clearing House
Licensing of clearing house and central counterparty
47. Application for clearing house licence and central counterparty
48. Requirements applicable to applicants for clearing house licence, central counterparty licence, licensed clearing house and licensed central counterparty
49. Licensing of clearing house and central counterparty
49A. Licensing of external central counterparty
Functions of licensed clearing house and licensed central counterparty
50. Functions of licensed clearing house and licensed central counterparty, and power of Authority to assume responsibility for functions
51. Maintenance of insurance, guarantee, compensation fund or other warranty
52. Funds of mutual independent clearing house or central counterparty
Clearing house rules
53. Requirements with which clearing house rules must comply
Chapter VI : Trade Repositories
54. Application for trade repository licence
55. Requirements applicable to applicant for trade repository licence and licensed trade repository
56. Licensing of trade repository
56A. Licensing of external trade repository
57. Duties of licensed trade repository
58. Reporting obligations
Chapter VII : General Provisions Applicable to Market Infrastructures
59. Annual assessment
60. Cancellation or suspension of licence
61. Carrying on of additional business
62. Conflicts of interest
63. Demutualisation of exchange, central securities depository, independent clearing house or central counterparty
64. Amalgamation, merger, transfer or disposal
65. Duty of members of controlling body
66. Appointment of members of controlling body
67. Limitation on control of and shareholding or other interest in market infrastructures
68. Delegation of functions
69. Report to Authority
70. Attendance of meetings by, and furnishing of documents to, Authority
71. Manner in which rules of certain market infrastructure may be made, amended or suspended, and penalties for contraventions of such rules
72. Limitation of liability
73. Disclosure of information
Chapter VIII : Conduct Standards
74. Conduct standards for regulated persons
75. Principles for conduct standards
Chapter IX : Provisions Relating to Nominees
76. Approval of nominee
Chapter X : Market Abuse
77. Definitions
Offences
78. Insider trading
79. Publication
80. Prohibited trading practices
81. False, misleading or deceptive statements, promises and forecasts
Insider trading sanction
82. Liability resulting from insider trading
Procedural matters
83. Attachments and interdicts
Administration of Chapter
84. Additional powers of Authority
85. Composition and functions of directorate
86. [Repealed] Financing of directorate
General provisions
87. Protection of existing rights
88. Confidentiality and sharing of information
Chapter XI : Auditing
89. Auditor
90. Accounting records and audit
91. Functions of auditor
92. Furnishing of information in good faith by auditor
93. Power of Authority to request audit
Chapter XII : General provisions
Powers of Authority and court
94. General powers of Authority
95. [Repealed] Inspections and on-site visits
96. Powers of Authority after supervisory on-site inspection or investigation
97. [Repealed] Power of Authority to impose penalties
98. Power of court to declare person disqualified
[Deleted] Enforcement committee
99. [Repealed] Referral to enforcement committee
Winding-up, business rescue and curatorship
100. Winding-up or sequestration by court
101. Business rescue
102. Appointment of curator
103. Appointment of business rescue practitioner or liquidator and approval of business rescue plan
Miscellanea
104. General interpretation of Act
105. Right of appeal
106. Evidence
107. Regulations
108. Fees
109. Offences and penalties
110. Savings and transitional arrangements
111. Repeal or amendment of laws
112. Short title and commencement
Schedule
Laws Repealed or Amended
Regulations
Financial Markets Acts Regulations
Notice No. R. 98 of 2018
Chapter I : Interpretation
1. Definitions
Chapter II : Requirements for the Regulation of OTC Derivatives
2. Requirement to be authorised
3. Reporting obligations
4. Clearing
Chapter III : Category of Regulated Person
5. Category of regulated person
Chapter IV : External Central Securities Depositories Links
6. Approval of an external central securities depository as a special category of participant
7. Requirements for an external link
Chapter V : Assets and Resources Requirements for Certain Market Infrastructures
8. Assets and resources requirements for exchanges, central securities depositories, clearing houses and trade repositories
Chapter VI : Central Counterparties
9. Legal basis
10. Access and participation
11. Governance
12. Risk committee
13. Risk management framework
13.1 General
13.2 Business risk
13.3 Counterparty credit risk
13.4 Risk mitigation
13.5 Country and transfer risk
13.6 Liquidity risk
13.7 Remuneration
13.8 Controlling body and senior management
13.9 Operational risk
13.10 Information technology
14. Related parties, subsidiaries and associates
15. Outsourcing
16. Compliance function
17. Efficiency, disclosure and transparency
18. Internal audit function
19. Business continuity
20. Custody, settlement and physical deliveries
21. Qualifying capital
22. General capital requirements
23. Specific capital requirements for credit risk, counterparty credit risk and market risk
24. Specific capital requirements for business risk and for winding-up or restructuring
25. Capital calculation requirements for operational risk
25.1 Basic indicator approach
25.2 Advanced measurement approach
25.2.1 Additional qualitative criteria for the advanced measurement approach
25.2.2 Qualitative standards
25.2.3 Quantitative standards
25.2.4 Internal data
25.2.5 External data
25.2.6 Scenario analysis
25.2.7 Business environment and internal control factors
25.2.8 Capital requirement for the advanced measurement approach
25.2.9 Eligible risk mitigation for the advanced measurement approach
26. Capital calculation requirements for credit risk
26.1 Use of credit ratings
26.2 Exposure to counterparties
26.3 Reduction of credit exposure
26.4 Exposure secured by a pledge or cession in securitatem debiti of eligible collateral
26.5 Eligible collateral for risk mitigation purposes
26.6 Calculation of exposure
27. Capital calculation requirements for credit risk
27.1 Governance
27.2 Exposure to central counterparties, clearing members and matters related to delivery-versus-payment transactions and non-delivery-versus-payment or free-delivery-transactions
27.3 Exposures to qualifying central counterparties
27.4 Exposures to non-qualifying central counterparties
28. Calculation requirements of the minimum required capital for CVA risk
29. Calculation of a central counterparty's credit exposure in terms of the current exposure method
29.1 Matters relating to the exposure amount or EAD
29.2 Matters relating to bilateral netting
29.3 Legal and operational criteria
30. Specific capital calculation requirements for market risk
30.1 Aggregate required amount of capital relating to market risk
30.2 The Standardised Approach
31. Liquidity risk
31.1 Specific requirements for liquidity risk
31.2 Liquidity risk controls
31.3 Assessment of liquidity risk
31.4 Access to liquidity
31.5 Concentration risk
31.6 Liquidity risk stress testing
32. Segregation and portability
33. Margin requirements
33.1 Exposure management
33.2 Margin system
33.3 Percentage
33.4 Time horizon for the calculation of historical volatility
33.5 Time horizons for the liquidation period
33.6 Portfolio margining
33.7 Procyclicality
34. Default procedures
35. Default fund
36. Other financial resources
37. Default waterfall
38. Collateral requirements
38.1 Haircuts
38.2 Concentration limits
38.3 Re-use of collateral collected as initial margin
38.4 Valuing collateral
39. Investment strategy and safeguarding of assets
40. Review of models, stress testing and back testing
40.1 Model Validation
40.2 Testing programmes
40.3 Back testing
40.4 Sensitivity testing and analysis
40.5 Stress testing
40.5.1 Stress testing - Risk factors to test
40.5.2 Stress testing - total financial resources
40.5.3 Stress testing - liquid financial resources
40.6 Maintaining sufficient coverage
40.7 Review of models using test results
40.8 Reverse stress tests
40.9 Testing default procedures
40.10 Frequency
40.11 Time horizons used when performing tests
40.12 Information to be publicly disclosed
41. Interoperability arrangements
41.1 Risk management for interoperability arrangements
41.2 Provision of margins among central counterparties
41.3 Approval of interoperability arrangements
41.4 Consideration by the Authority
42. Record keeping
42.1 General requirements
42.2 Transaction records
42.3 Position records
42.4 Business records
42.5 Records of data reported to a trade repository
Chapter VII : Transitional Arrangements and Commencement
43. Transitional arrangements
44. Commencement and short title
Schedule A
List of Abbreviations and Acronyms
Operational Risk (as set out in Regulation 25)
Table 25(A)
Table 25(B)
Credit Risk (Capital calculations for credit risk as set out in Regulation 26)
Table 26(A)
Table 26(B)
Table 26(C): Standard haircut
Table 26(D)
Table 26(E): Volatility adjusted haircuts
Table 26(F): volatility adjusted haircuts for currency mismatches
Counterparty Credit Risk (as set out in Regulation 27)
Table 27(A)
Table 27(B): Credit conversion factor
Table 27(C): Potential future exposure add-on factor
Market Risk
Table 30(A)
Table 30(B): Maturity method: time bands and weights
Table 30(C): Horizontal disallowances
Table 30(D): Duration method: time bands and assumed changes in yield
Notices
Commencement of Amendments to Financial Markets Act, 2012, as contained in Financial Sector Regulation Act, 2017
Notice No. R. 99 of 2018
Board Notices
Prescribed Fees
Board Notice No. 137 of 2015
1. Definition
2. Fees
3. Manner of payment of fees
4. Interest in respect of overdue fees
5. Commencement and repeal
Approved Amendments to Strate Rules
Board Notice 163 of 2017
Approved Amendments to the JSE Listings Requirements
Board Notice 185 of 2017
Approved Amendments to the JSE Listings Requirements : Transferability of Securities
Board Notice 51 of 2018
Approved Amendments to the A2 X Trading Rules
Board Notice 95 of 2018
Approved Amendments to the Listing Requirements of Equity Express Securities Exchange (Pty) Ltd
Board Notice 16 of 2019
Approved Amendments to the JSE Rules and Directives: Interest Rate and Currency (IRC) Market and Derivatives Markets
Board Notice 70 of 2019
Approved Amendments to the JSE Debt Listings Requirements - Sustainability Segment
Board Notice 68 of 2020
Approved Amendments to the JSE Derivatives Rules
Board Notice 127 of 2021
Approved Amendments to the JSE Interest Rate and Currency Derivatives Rules and the JSE Derivatives Rules - Emigrant Client Concept
Board Notice 130 of 2021
Approved Amendments to the JSE Debt Listing Requirements - Sustainability
Board Notice 220 of 2022
Approved Amendments to the A2 X Trading Rules
Purchase
Board Notice 95 of 2018
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