The Financial Sector Conduct Authority has, with the concurrence of the Prudential Authority and the South African Reserve Bank, granted JSE Clear (Pty) Ltd (JSE Clear) a license to operate as an Independent Clearing House and a Central Counterparty in terms of the Financial Markets Act, 2012.

The function of a Clearing House that is a Central Counterparty, is to guarantee the conclusion of trades and minimize any risks that may arise. JSE Clear will assume operations as an Independent Clearing House in terms of its own rules once consequential amendments to the current JSE exchange rules have been effected. In the interim, JSE Clear will continue to operate as an Associate Clearing House of the JSE.

The licensing of JSE Clear will not only enhance the efficiency of the South African financial markets through risk management and other processes at the disposal of a central counterparty but is a milestone that will promote the international competitiveness of the markets.

To read the FSCA’s press release, click here.

To read the JSE Clear Rules, click here.

Enquiries can be directed to the FSCA via fscacommunications@fsca.co.za