FSCA and PA Propose Changes to OTC Derivative Reporting Requirements

Posted 11 December 2025 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) are seeking public comment on a draft joint notice intended to update reporting requirements for over-the-counter (OTC) derivative transactions.

In terms of the Financial Sector Regulation Act, No. 9 of 2017, the authorities have issued a joint communication calling for input by 3 February 2026 on proposed changes to regulatory reporting obligations. These obligations are established under Joint Standard 2 of 2020, which prescribes margin requirements for non-centrally cleared OTC derivative transactions.

The Joint Standard 2 of 2020 was previously amended in June 2023. The current proposal takes the form of a draft joint notice that, once finalised, will replace the reporting notice issued in December 2024. The draft replacement notice outlines specific changes to the technical reporting fields and data standards required from market participants.

Key aspects of the proposed regulatory update include:

  • Revisions to the reporting templates for non-centrally cleared OTC derivatives;
  • Alignment with international data standards for derivative transaction reporting; and
  • Updated timelines for the submission of regulatory returns to the FSCA and PA.

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

  • For yourself: You must review the draft joint notice to ensure your technical understanding of OTC derivative reporting fields remains current with the 2026 implementation timeline.
  • For your business: Your firm’s compliance and IT departments must assess the draft reporting fields to determine the extent of system reconfigurations required to meet the updated Joint Standard 2 of 2020 requirements.
  • For your clients: Advise clients engaged in OTC derivative trading that they may face more granular data disclosure requirements and should prepare for potential changes in their reporting workflows.

Originally published at https://legalacademy.co.za/news/read/financial-markets-more-changes-proposed-for-otc-derivitative-reporting-requirements

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