South Africa's regulators plan to finalise new rules requiring over‑the‑counter (OTC) derivatives to undergo central clearing within two years, with the rules expected to take effect by 2028.

The South African Reserve Bank says the framework aims to improve market transparency and reduce systemic risk. Rand‑denominated interest rate swaps and forward rate agreements will be the first OTC derivatives mandated for central clearing, with other products phased in based on industry feedback and market analysis.

The OTC derivatives market linked to the rand exceeds 150 trillion rand, or roughly $9.3 trillion, according to central bank data. The change signals a shift toward a more regulated derivatives market, aligning with global best practices.