The South African Reserve Bank has published a discussion paper describing how it will support the Governor in identifying market infrastructures and payment systems that should be designated as systemically important under the Financial Sector Regulation Act 9 of 2017. The approach combines a scored quantitative assessment with qualitative supervisory judgement and explains how designation affects oversight and resolution planning. The methodology applies indicators aligned to those used for banks and insurers, tailored to market infrastructures and payment systems, with weightings of 40% for size, 30% for interconnectedness, 20% for substitutability and 10% for complexity and global activity. Sub-indicators vary by type of entity, covering metrics such as transaction values and volumes (including a ZAR 5m split for high and low value payments), participants and cross-participation, market share, interoperability arrangements, concentrations and the extent of cross-border activity. The paper also sets out the statutory process for designation, including notification to the Financial Stability Oversight Committee and consideration of submissions from the affected entity, with publication of any designation or revocation on the South African Reserve Bank’s website, and scope for an expedited process if a systemic event is imminent. Designation brings the entity into the resolution regime, including resolution planning, and can enable the South African Reserve Bank, after consultation with the Financial Sector Conduct Authority and the Prudential Authority, to direct the Prudential Authority to impose additional requirements on systemically important market infrastructures. The approach is intended to be reviewed when international guidance changes and designations will be periodically reassessed, while the paper notes the proposed approach was published for public consultation in the second quarter of 2025.
South African Reserve Bank 2025-12-01
South African Reserve Bank sets out approach to designate systemically important market infrastructures and payment systems
The South African Reserve Bank released a discussion paper on designating systemically important market infrastructures and payment systems under the Financial Sector Regulation Act 9 of 2017. The approach combines quantitative assessment and qualitative judgement, with indicators weighted for size, interconnectedness, substitutability, and complexity. Designation subjects entities to resolution planning and potential additional requirements, with processes for notification, consultation, and reassessment detailed.