The International Swaps and Derivatives Association Inc. (ISDA) indicated that South Africa has been in focus over recent months since the margin requirements for non-centrally cleared derivatives transactions were published for comment in June 2015. The aim of the requirements is to outline the future regulation of OTC derivatives in South Africa in line with
Bridget King
New Curatorship regime – thanks to ABIL?
By Bridget King on
The Banks Amendment Act came into operation on Monday, 29 June 2015. The Amendment Act looks slightly different to the draft bills that were circulated towards the end of 2014. Input from the Standing Committee on Finance has now been incorporated.
The Amendment Act provides for the curator of a financially distressed bank to create…
The reality of the virtual debit card in South Africa
By Bridget King & Sascha Graham on
The virtual debit card is fast becoming a reality for many consumers around the world who do not have access to online shopping sites that require payment by a credit card or who are simply afraid to use their credit card details while shopping online. Payment systems are constantly being developed around the world to…
Derivatives trading in Tanzania
By Bridget King & Adam Lovett (UK) on
Norton Rose Fulbright’s Dar-es-Salaam office this month assisted the International Swaps and Derivatives Association Inc. (ISDA) with a country update on the laws which relate to the trading of over-the-counter derivatives in Tanzania. A full copy of the Tanzania update prepared by Norton Rose Fulbright can be found via the ISDA website (click here).…
What stops mobile money payments in South Africa?
By Bridget King & Sascha Graham on
Mobile payment services are typically the transfer of funds or payments using mobile devices that do not rely on traditional banking or payment services. Customers use an “open-loop” system to spend the value they have deposited into their mobile money account at service providers, transfer it to someone else or withdraw the value as cash…
High Frequency Trading
By Bridget King & Tracey-Lee Barnes on
In the United States High Frequency Trading (HFT) is expected to account for about 48,5% of exchange trade volume in 2014. This percentage has dropped from HFT’s peak of 61% in 2009. In the UK, estimates are that HFT represents approximately 36% of UK stock market transactions.
This is a globally significant volume of trades.…
In the wake of ABIL: Proposed changes to Banks Act will give curator of a failed bank more options
By Bridget King on
Proposed changes to the curatorship process will allow the transfer of all or a part of a bank’s business to another entity (this would be done as a transfer under s54 of the Banks Act).
When African Bank Investments Limited (ABIL) was placed under curatorship on 10 August 2014, it was announced that some of…
The US Volcker rule, UK, South Africa and elsewhere
By Bridget King & Marc Van Heerden on
The SA Reserve Bank is adopting a wait-and-see approach.
The Volcker Rule came into force in the US in April 2014. The Volcker Rule is a federal regulation under the Dodd-Frank Act that, subject to exceptions, prohibits US commercial banks from engaging in short-term proprietary trading of many financial instruments for their own account. The…