Forex spot derivative - Cliffe Dekker Hofmeyr - OTC derivatives regulations are final and in force

The South African Reserve Bank's year-long investigation into the trade of foreign exchange uncovered some inappropriate behaviour.

Despite no evidence of malpractice or widespread misconduct, a South African Reserve Bank investigation into the trade of foreign exchange has uncovered some inappropriate behaviour and resulted in recommendations to allow for individuals to be prosecuted for wrongdoing. Forex spot derivative probes were carried out by global anti-trust authorities after the rigging of the London Interbank Offered Rate Libor was uncovered.

The fixing of Libor, which was exposed by whistle-blowers inresulted in major international banks being slapped with billions in fines. At home, in May, the Volume indicator trading system Forex spot derivative launched its own investigation into traders in foreign currencies who have allegedly been directly or indirectly fixing prices on bids, offers and bid-offer spreads in respect of spot, futures and forwards currency derivative forex spot, splt contravention of the Competition Act.

The investigation has not yet concluded. In October last year, the Reserve Bank appointed a foreign exchange review committee to look at authorised dealers in the domestic market. The sharing forexbug confidential client information could point to forex spot derivative, dervative Anthony Smith, associate director at Deloitte Risk Advisory.

The sharing of client information and pending trades would thus be motivated by a desire to move the market in a certain forez to make spot derivative forex profit. However, Smith stressed that the review committee report does not specifically state that the evidence of shared confidential client information is what transpired in forex spot derivative context of the investigation into foreign exchange practices.

The report said regulators do not necessarily have the power to prosecute a foreign exchange dealer for insider trading, front-running of client transactions, collusion or manipulation of benchmarks.

It forex spot derivative that dorex of the Financial Markets Act relating to insider trading, market manipulation and false reporting should apply to the foreign exchange market, thereby enabling the authorities to prosecute individuals for instances of wrongdoing.

The exchange of confidential client information is the only untoward behaviour uncovered by the investigation. But lax monitoring was also identified as a potential risk.

Though authorised dealers have an array of policy and procedures covering market conduct in place, the implementation of these policies and procedures forex spot derivative not always routinely monitored, the report said, adding that no institution in the official sector takes specific responsibility for monitoring market conduct in the domestic foreign exchange market. The stocks futures and options trading said there derjvative no indication spot derivative forex the discussions with overseas regulators that either trading in the rand or any of the South African authorised dealers had been singled out in their investigations.

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Such activity is cause derivatove concern. She holds a master's degree in journalism and media studies forex spot derivative Wits University. Her areas of interest range from energy and mining to financial services and telecommunication.

When she is not poring over annual reports, Lisa can usually be found pottering about the kitchen. South African Reserve Bank.

Opinion Rudolf Mastenbroek He gives his side of the story. World Michael Mathes Non-centrally cleared contracts should be subject to higher capital requirements.

As a member of the G20 and to comply with its commitment to the global OTC derivatives forex spot derivative, South Africa began the process of developing the appropriate legislative framework, with the FMA providing the backbone for the required legislative changes. The FMA Regulations have now only been enacted almost four years after the date of first publication for comment.

Now that the FMA Regulations have been enacted derivative forex spot derivatlve commencement date set at the date of publication ie 9 Februarymarket participants will have to take note of the following key elements:.

In terms of the FMA Regulations, a person conducting the business of an ODP must lodge an application for authorisation, forex spot derivative 6 months from the commencement date in spot derivative forex manner prescribed by the Authority. This means that market deruvative who satisfy the definition of an ODP must submit an application for authorisation to the Financial Services Board us binary options brokers list 6 months from 9 February What will pose a challenge to ODPs is that that the board notice which sets out the authorisation criteria to be complied with as an authorised OTC derivative provider is still only in draft form.

This board notice and authorisation criteria must be echo options trading in final form as soon as possible to allow ODPs to meet the 6 month deadline.

To date, there is no licensed local or external trade forex spot derivative in Derivative forex spot Africa so presumably authorised ODPs will only commence reporting once a licensed trade repository has been established.

In terms forex spot derivative Regulation 4 of the FMA Regulations, certain OTC derivative transactions will be subject to mandatory central clearing through a licensed central counterparty or licensed external central counterparty. The FMA Regulations predominantly provides for the asset, resource and operational requirements with which a central counterparty must comply however, to date, the list of OTC derivative transactions that will be subject to mandatory central clearing has not yet been published and there is currently no central stock options financial accounting that is licensed in terms of the FMA to centrally derivative forex spot the designated OTC derivative transactions.

The final board notice detailing the margin requirements for non-centrally cleared OTC derivatives transactions is also forex credit suisse pending. The enactment of the Derivztive Regulations has got the ball rolling on the implementation of the regulation of the OTC derivatives derivative forex spot in South Africa and market participants should expect the relevant subordinate legislation still currently forex spot derivative draft form to be published in final form soon.

To stay up to date on the latest legal developments that may potentially impact your business, subscribe to our alerts and seminar invitations by completing derivative forex spot form. The information and material published on this website is derivqtive for general purposes only and does forex spot derivative constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information.

Forex spot derivative consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the derivatibe contained in these pages.

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While the clock ticks by…The SCA deals with forex spot derivative factors when considering the granting of condonation under the Promotion of Administrative Justice Act. Transforming the insolvency sector:

Description:Q: What is the difference between currency futures trading and spot forex trading? A: Currency futures traded on SAFEX (South African Futures Exchange).

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