The Financial Markets Liaison Group (FMLG) is a consultative forum and was established as a joint initiative between the South African Reserve Bank (SARB), as the central bank, and key participants in the financial markets. The FMLG strives to facilitate an active dialogue between the SARB and market participants on topics of common interest and acts as a valuable platform to exchange views on market functioning.

FMLG meetings are chaired by the deputy governor of the SARB responsible for markets and international. Members include senior representatives from the major domestic banks, the International Banking Association, National Treasury and various departments of the SARB. Representatives from the Prudential Authority, the Banking Association South Africa, the Association for Savings and Investment South Africa, the exchanges, the central securities depositories, and other relevant parties are invited occasionally to present on topics of particular interest.

The FMLG meetings are held semi-annually, as a means for the SARB and market participants to maintain regular contact at senior level. Special FMLG meetings are convened when specific issues need to be discussed as a matter of urgency.

The FMLG structure provides for subcommittees that undertake projects and report to it on a regular basis. The FMLG subcommittees are:

  • Money Market Subcommittee;
  • Fixed Income and Derivatives Subcommittee; and
  • Financial Markets Infrastructure Subcommittee. 

 

Contact details

Chairperson

Deputy Governor Markets and International
Ms F Tshazibana
+27 12 399 6484

FMLG Secretariat

Mr E Makgopa
+27 12 313 4124

Edwin.Makgopa@resbank.co.za

 

The FMLG is a joint initiative between the Bank, as the central bank of the Republic, and key participants in the financial markets. It emerged from the Money Market Liaison Group (MMLG), which was initiated in 2005 when market participants were consulted on modifications to the Bank’s refinancing system.

FMLG terms of reference

 

Mr Zafar Parker

Head Financial Markets Department (SARB and Chairperson of the SAFXC)

Mr Richard de Roos

Authorised Dealer (Deputy Chairperson)

Mr Michael Galatis

Association Cambiste Internationale (ACI) South Africa

Mr Chris Paizis

Authorised Dealer

Mr Kumeran Govender

Authorised Dealer

Mr Ian Balfour

Authorised Dealer

Mr Mark Schwartz

The Association of Corporate Treasurers of Southern Africa (ACTSA)

Ms Gill Raine

The Association of Savings and Investment South Africa (ASISA)

Mr Gary Haylett

Banking Association South Africa (BASA)

Mr Marius de Jongh

Financial Sector Conduct Authority (FSCA)*

Mr Paul Wilson

Interdealer Broker

Mr Udesh Moodley

Securities Exchange

Mr Carlos Martins

South African Association of Treasury Advisors (SAATA)

Ms Samantha Springfield

South African Reserve Bank

Mr Andries Tshishonga

South African Reserve Bank

Ms Aurelia Makgato

South African Reserve Bank

Ms Lucy Mabuza

South African Reserve Bank - Meeting Secretary

Ms Mpumi Ngwenya

South African Reserve Bank - Meeting Secretary

Dates Where
02 June 2020
14h00 – 16h00
South African Reserve Bank
Conference Centre
28 October 2020
14h00 – 16h00
South African Reserve Bank
Conference Centre

The South African Foreign Exchange Committee (SAFXC) is a forum representing industry-wide key market professionals involved in the wholesale foreign exchange market under the sponsorship and leadership of the South African Reserve Bank (SARB). The processes to establish SAFXC commenced after South Africa became a member of the Global Foreign Exchange Committee in May 2017 (see https://www.globalfxc.org/ for more detail).

The purpose of the Committee is to provide guidance in the foreign exchange market by endorsing and upholding the FX Global Code and to facilitate market participants’ adherence to the Code with the intention of promoting a fair and transparent market, as well as compliance with international best practice.

SAFAX is chaired by Mr Zafar Parker, Head: Financial Market Department, SARB, with Mr Richard de Roos, Head: Foreign Exchange serving as Deputy Chairperson. The Committee shall meet at least four times per annum.

Membership of the committee include representatives of the SARB, Authorised Dealers, the interdealer broker community, the Association for Savings and Investment South Africa, Association Cambiste International South Africa, the Banking Association South Africa, a securities exchange, the Association of Corporate Treasurers of Southern Africa, and other market participants, as determined by the Committee.

The following are the functions of the Committee:

  • to endorse, actively promote and uphold the non-legislative FX Global Code, and contribute to its updating;
  • to promote compliance with international best practice;
  • to discuss the functioning of the South African FX market and propose ways to improve its efficiency;
  • to discuss topical issues relating to spot and derivative trading activities in the domestic FX market; and
  • to exchange views on trends and developments in global FX markets, including the structure and functioning of those markets.

 

Contact details

Chairperson

Mr Zafar Parker
+27 12 313 4707

Deputy Chairperson

Mr Richard de Roos
+27 11 415 7903

Meeting Secretaries

Ms Lucy Mabuza
+27 12 313 4537
Lucy.Mabuza@resbank.co.za

Ms Mpumi Ngwenya
+27 12 313 4950
Mpumi.Ngwenya@resbank.co.za

 

The South African Foreign Exchange Committee is a forum representing industry-wide key market professionals involved in the wholesale foreign exchange market under the sponsorship and leadership of the South African Reserve Bank (SARB). This Committee has no legal powers to impose legal or regulatory obligations on market participants, but rather intends to provide them with guidance by identifying and promoting global good practices.

SAFXC Terms of Reference

 

Mr Zafar Parker

South African Reserve Bank (Chairperson)

Mr Richard de Roos

Authorised Dealer (Deputy Chairperson)

Mr Michael Galatis

Association Cambiste Internationale (ACI) South Africa

Mr Chris Paizis

Authorised Dealer

Mr Kumeran Govender

Authorised Dealer

Mr Ian Balfour

Authorised Dealer

Mr Mark Schwartz

The Association of Corporate Treasurers of Southern Africa (ACTSA)

Ms Gill Raine

The Association for Savings and Investment South Africa (ASISA)

Mr Gary Haylett

Banking Association South Africa (BASA)

Mr Marius de Jongh

Financial Sector Conduct Authority (FSCA)*

Mr Paul Wilson

Interdealer Broker

Mr Udesh Moodley

Securities Exchange

Mr Carlos Martins South African Association of Treasury Advisors (SAATA)
Ms Samantha Springfield South African Reserve Bank

Mr Andries Tshishonga

South African Reserve Bank

Ms Aurelia Makgato

South African Reserve Bank

Ms Lucy Mabuza

South African Reserve Bank — Meeting Secretary

Ms Mpumi Ngwenya
South African Reserve Bank — Meeting Secretary 


* FSCA serves in an observer capacity

 

Dates Where
Tuesday, 16 March 2021 South African Reserve Bank
Head Office
Wednesday, 23 June 2021 South African Reserve Bank
Head Office
Tuesday, 14 September 2021 South African Reserve Bank
Head Office
Wednesday, 03 November 2021 South African Rserve Bank
Head Office

In August 2018, the SARB published the “Consultation paper on selected interest rate benchmarks in South Africa”. The paper made key recommendations regarding the reform of the Johannesburg Interbank Average Rate (Jibar) and the South African Benchmark Overnight Rate on Deposits (Sabor). It proposed new interest rate benchmarks that the SARB would calculate and monitor in order to enhance the transparency of monetary policy transmission and enrich the current framework for systemic risk identification and monitoring.

The paper recommended the establishment of the Market Practitioners Group (MPG), which is a joint public and private sector body. The primary purpose of the MPG is to make the final decisions on the choice of interest rate benchmarks to be used as reference interest rates for financial and derivative contracts, as well as to provide input to the SARB and the Financial Sector Conduct Authority (FSCA) on the operationalisation of the interest rate benchmark proposals contained in the paper. Please refer to the MPG page for comprehensive detail on the review of domestic interest rate benchmarks.

The MPG functions alongside other structures, such as the Financial Markets Liaison Group (FMLG), and is chaired by the Deputy Governor: Markets and International of the SARB. It comprises members of the SARB and the FSCA, and senior professionals from a variety of institutions to reflect different market interest groups active in the domestic money market.

The MPG will remain in existence until the new benchmarks have been implemented and embedded, after which the Reference Rate Working Group of the FMLG will assume responsibility for further work on reference interest rates.

Contact details

MPGSecretariat@resbank.co.za

 

The SARB published a consultation paper on selected interest rate benchmarks in South Africa on 30 August 2018. The consultation paper sets out proposals for the reform of interest rate benchmarks in South Africa. To manage the process of adoption of, and transition to the new interest rate dispensation as proposed in the consultation paper, the SARB established the MPG. 

Following the consultation period, the SARB will liaise with the MPG in finalising the implementation paper on interest rate benchmarks in South Africa.

MPG Terms of Reference

 

Media release:

  • Media release
    Draft Statement of methodology and the policies governing the South African Reserve Bank-administered interest rate benchmarks - Publish date: 2020-06-19
  • Media release
    Report on stakeholder feedback on the reform of interest rate benchmarks in South Africa - Publish date: 2019-05-24
  • Media release
    Consultation paper on selected interest rate benchmarks in South Africa - Publish date: 2018-08-30

Related documents:

MPG Forum Presentation – 06 November 2020

Risk-Free Reference Rate Work Stream – August 2020

Unsecured Reference Rates Work Stream Position Paper – August 2020

Draft Statement of methodology and the policies governing the South African Reserve Bank-administered interest rate benchmarks – 19 June 2020

Report on stakeholder feedback on the reform of interest rate benchmarks in South Africa – May 2019

Consultation paper on selected interest rate benchmarks in South Africa – 30 August 2018