South African Reserve Bank launches consultation on designating systemically important market infrastructures exchanges and payment systems

The South African Reserve Bank has issued a discussion paper for public comment setting out its proposed approach to help the Governor identify and designate systemically important market infrastructures, exchanges and payment systems under the Financial Sector Regulation Act 9 of 2017. The paper proposes a combined quantitative and qualitative assessment, aligned with the SARB’s existing systemic importance methodologies for banks and insurers and informed by Financial Stability Board and CPMI-IOSCO guidance. The quantitative framework uses four indicators with prescribed weightings: size (40%), interconnectedness (30%), substitutability (20%), and complexity and global activity (10%), with sub-indicators tailored by infrastructure type (including transaction volumes and values, market share, participant base, interfaces with other infrastructures, and interoperability). It also sets out the statutory designation process, including notification to the Financial Stability Oversight Committee and consideration of submissions from the entity concerned, alongside publication of designations or revocations on the SARB’s website, with scope for expedited designation where a systemic event has occurred or is imminent. Comments close on 30 June 2025. The SARB notes the approach may be reviewed when international guidance changes or new information becomes available, and indicates an intention for the Governor to publish designations and revocations.