JSE Interest Rate and Currency Derivatives Rules: Draft Amendments Published

Posted 04 July 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Financial Sector Conduct Authority (FSCA) has released draft amendments to the Johannesburg Stock Exchange (JSE) Interest Rate and Currency Derivatives Rules for public consultation, focusing on the regulatory framework for tri-party repurchase transactions.

In terms of the Financial Sector Regulation Act, No. 9 of 2017, the proposed amendments seek to enhance the JSE’s capital market offering by integrating tri-party repurchase (repo) transactions into the existing interest rate and currency derivatives market. The initiative is intended to leverage the flexibility and operational efficiencies inherent in tri-party structures to benefit the broader JSE bond and repo markets.

The draft amendments and the accompanying explanatory memorandum outline the technical requirements for these transactions. According to the FSCA, the introduction of these rules is expected to achieve the following:

  • Enhance liquidity within the JSE bond and repo market segments;
  • Improve collateral management efficiencies through the use of third-party agents; and
  • Reduce systemic and operational risks associated with traditional bilateral settlement processes.

Stakeholders, market participants, and interested parties are required to submit written comments on the draft amendments by no later than 18 July 2025.

What this means for you, your business, or your clients

  • For yourself: You must review the draft technical definitions of tri-party repo transactions to ensure your professional advice regarding derivatives and interest rate products remains aligned with the proposed JSE regulatory framework.
  • For your business: Treasury departments and compliance officers must evaluate the operational readiness of their firms to participate in tri-party repo structures, specifically regarding collateral management systems and updated risk management protocols required by the JSE.
  • For your clients: Institutional investors and fund managers should be advised on the potential for increased liquidity and more efficient collateralisation options, which may necessitate revisions to investment mandates or client disclosure documents once the rules are finalised.

Originally published at https://legalacademy.co.za/news/read/capital-markets-input-sought-on-draft-amendments-to-jse-interest-rate-and-currency-derivatives-rules

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