FSCA licences Strate as trade repository
29 November 2024 South Africa
Image: Wanlop/stock.adobe.com
The Financial Sector Conduct Authority of South Africa (FSCA) has granted Strate, South Africa’s central securities depository and central collateral platform, a licence to operate as a trade repository, collecting and maintaining trade records.
According to the FSCA, this collection of data fosters transparency in the markets and assists the regulators with monitoring any build-up of concentration and systemic risk, which could also affect financial stability — as evidenced by the global financial crisis in 2008.
The authority adds: “Having a licensed trade repository is a significant milestone, which contributes towards the Group of Twenty (G20) financial sector reform programme, started in 2009.”
Among other objectives, the G20 programme aims to reduce the systemic risk associated with trading OTC derivatives instruments by reporting them to a trade repository.
Strate’s licence approval follows an assessment against the peremptory requirements in the Financial Markets Act for granting a licence, the applicable subordinate legislation, as well as a public consultation.
The licence is subject to certain terms and conditions to ensure the trade repository operates efficiently to best serve the financial markets.
According to the FSCA, this collection of data fosters transparency in the markets and assists the regulators with monitoring any build-up of concentration and systemic risk, which could also affect financial stability — as evidenced by the global financial crisis in 2008.
The authority adds: “Having a licensed trade repository is a significant milestone, which contributes towards the Group of Twenty (G20) financial sector reform programme, started in 2009.”
Among other objectives, the G20 programme aims to reduce the systemic risk associated with trading OTC derivatives instruments by reporting them to a trade repository.
Strate’s licence approval follows an assessment against the peremptory requirements in the Financial Markets Act for granting a licence, the applicable subordinate legislation, as well as a public consultation.
The licence is subject to certain terms and conditions to ensure the trade repository operates efficiently to best serve the financial markets.
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