The acceptance of securities collateral by JSE Clear, will allow members to meet their Initial Margin (IM) requirements through a combination of ZAR cash and liquid South African fixed rate government bonds.

Clients will benefit greatly as liquidity pressures and funding costs are reduced for derivative market participants in an environment of increasing regulatory capital requirements and other cost pressures. In times of market stress when margins inevitably increase, liquidity pressures are alleviated.

Service Offering

  • Securities collateral will initially be offered in the following derivative markets
    • Equity Derivatives and Currency Derivatives
  • Eligible securities
    • Initial phase - liquid South African government bonds
    • Later phases – equities to be considered
  • Obligations for which securities collateral will be accepted
    • Initial margin (including add-on's)
    • Clearing member default fund contributions will be catered for in a later phase

      NB: Additional margin required by Clearing Members on top of the CCP margin call will not be able to be covered by securities via the JSE Clear collateral solution and Variation Margin will remain payable in ZAR cash.

  • A minimum percentage of the IM obligation will need to be settled in ZAR cash
    • Initially this will be 65% i.e. up to 35% of the IM obligation can be collateralized through securities.

Click here to download the information guide.

For more information, please contact us on:

Email: [email protected]

Tel: +27 11 520 7000

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