Market infrastructure conduct standard
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Individual Reform: Market infrastructure conduct standard 2026 - 2027

New standards for exchanges and market infrastructures with the draft expanded in 2024.

No data available for the deliverable: New standards for exchanges and market infrastructures with the draft expanded in 2024.

No data available for the deliverable: New standards for exchanges and market infrastructures with the draft expanded in 2024.

No data available for the deliverable: New standards for exchanges and market infrastructures with the draft expanded in 2024.

No data available for the deliverable: New standards for exchanges and market infrastructures with the draft expanded in 2024.

No data available for the deliverable: New standards for exchanges and market infrastructures with the draft expanded in 2024.

Summary

The reform introduces new standards for exchanges, clearinghouses and market infrastructures, with a focus on interoperability and risk management. Finalisation is expected in 2025.

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Is it working?

The reform is progressing, with strong regulatory and industry collaboration, but the final standard is not yet in force.

Actions

Industry engagement has been positive, and the draft standards are being refined in response to feedback.

Are there plans?

Draft standards were expanded in 2024, with finalisation expected in 2025 after extensive consultation.

Is it on the agenda?

The FSCA has made this a priority, with support from National Treasury and industry stakeholders.

Goals

To enhance the integrity, efficiency and innovation of South Africa’s market infrastructure, as well as to improve market resilience, through robust conduct standards.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)

Summary

The reform introduces new standards for exchanges, clearinghouses and market infrastructures, with a focus on interoperability and risk management. Finalisation was expected in 2025. The FSCA and SARB have set new standards for exchanges and market infrastructures. Updated conduct rules have been consulted with the sector and compliance timelines are aligned to exchange market needs.

Canvas not supported.

Is it working?

The reform is progressing, with strong regulatory and industry collaboration, but the final standard is not yet in force. Sector compliance is improving and further guidance and audits are being scheduled.

Actions

Industry engagement has been positive, and the draft standards are being refined in response to feedback. Market adoption is under way and stakeholder input will be included in final standards.

Are there plans?

Draft standards were expanded in 2024, with finalisation expected in 2025 after extensive consultation. Draft standard finalisation, stakeholder engagement and periodic compliance audits are being implemented.

Is it on the agenda?

The FSCA has made this a priority, with support from National Treasury and industry stakeholders. It forms part of the FSCA annual regulation plan, Cabinet sector strategy and SARB oversight.

Goals

To enhance the integrity, efficiency and innovation of South Africa’s market infrastructure, as well as to improve market resilience, through robust conduct standards. The aim here is to strengthen the integrity and conduct of exchanges/market infrastructures.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)

Summary

The FSCA has developed a draft Conduct Standard – Requirements for Market Infrastructures under the Financial Sector Regulation Act, expanding an earlier 2020 draft (focused only on exchanges) to cover all market infrastructures licensed under the Financial Markets Act. The draft standard sets principles and detailed rules for how market infrastructures must conduct business with each other and with market participants, manage conflicts of interest, support interoperability and cooperation and deal with market fragmentation in a multi‑infrastructure environment.

Canvas not supported.

Is it working?

Although still in draft, the framework addresses clear gaps created by the emergence of multiple exchanges and other infrastructures sharing common authourised users and listings. Its effectiveness will hinge on final calibration of interoperability and cooperation duties, how conflicts with commercial strategies are managed and the interaction with broader FMA review and competition‑policy objectives

Actions

The FSCA published the draft Conduct Standard – Requirements for Market Infrastructures and the supporting statement of need, expected impact and intended operation for public comment (communications and draft text available on the FSCA and Jutacompli sites). In parallel, the PA and FSCA issued a Draft Joint Standard – Minimum Requirements for the recovery plans of market infrastructures (31 May 2024) with an accompanying Draft Guidance Notice on recovery tools, aligning conduct expectations with international PFMI‑based recovery planning standards.

Are there plans?

FSCA communication 14 of 2024 (FM) confirms a further consultation round on the expanded draft, supported by a detailed statement of need/impact. The FSCA intends to finalise the standard after industry feedback, align it with other market infrastructure reforms (recovery plan Joint Standard, cyber‑resilience Joint Standard) and then bring it into force with appropriate transitional periods.
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Is it on the agenda?

The FSCA’s 2025–2028 Regulation Plan lists the market infrastructure conduct standard as a key project in its “market integrity and efficiency” workstream, and National Treasury’s Financial Markets Act review programme (and associated policy work) highlights the need for updated conduct requirements in a multi‑exchange, multi‑infrastructure environment.

Goals

To enhance the integrity, efficiency and innovation of South Africa’s market infrastructure, as well as to improve market resilience, through robust conduct standards. The aim here is to strengthen the integrity and conduct of exchanges/market infrastructures.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)

Summary

The FSCA has developed a draft Conduct Standard – Requirements for Market Infrastructures under the Financial Sector Regulation Act, expanding an earlier 2020 draft (focused only on exchanges) to cover all market infrastructures licensed under the Financial Markets Act. The draft standard sets principles and detailed rules for how market infrastructures must conduct business with each other and with market participants, manage conflicts of interest, support interoperability and cooperation and deal with market fragmentation in a multi‑infrastructure environment.

Canvas not supported.

Is it working?

Although still in draft, the framework addresses clear gaps created by the emergence of multiple exchanges and other infrastructures sharing common authourised users and listings. Its effectiveness will hinge on final calibration of interoperability and cooperation duties, how conflicts with commercial strategies are managed and the interaction with broader FMA review and competition‑policy objectives

Actions

The FSCA published the draft Conduct Standard – Requirements for Market Infrastructures and the supporting statement of need, expected impact and intended operation for public comment (communications and draft text available on the FSCA and Jutacompli sites). In parallel, the PA and FSCA issued a Draft Joint Standard – Minimum Requirements for the recovery plans of market infrastructures (31 May 2024) with an accompanying Draft Guidance Notice on recovery tools, aligning conduct expectations with international PFMI‑based recovery planning standards.

Are there plans?

FSCA communication 14 of 2024 (FM) confirms a further consultation round on the expanded draft, supported by a detailed statement of need/impact. The FSCA intends to finalise the standard after industry feedback, align it with other market infrastructure reforms (recovery plan Joint Standard, cyber‑resilience Joint Standard) and then bring it into force with appropriate transitional periods.
rn

Is it on the agenda?

The FSCA’s 2025–2028 Regulation Plan lists the market infrastructure conduct standard as a key project in its “market integrity and efficiency” workstream, and National Treasury’s Financial Markets Act review programme (and associated policy work) highlights the need for updated conduct requirements in a multi‑exchange, multi‑infrastructure environment.

Goals

To enhance the integrity, efficiency and innovation of South Africa’s market infrastructure, as well as to improve market resilience, through robust conduct standards. The aim here is to strengthen the integrity and conduct of exchanges/market infrastructures.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: in-progress
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