Bond Market Infrastructure – Adre Smit

 Bond Market Development
 Debt Issuer Services
Town Hall Meeting
 Fixed Income Regulatory Issues
June 2013
 Prudential Committee
 Infrastructure Investment Work Group
Adré Smit
Bond Market Development
 Seeking greater transparency from the market, but liquidity
remains important; trying to get right balance between two
 National Treasury Bond Market Development Committee
 Electronic trading platform for government bonds
 Membership/ ASISA sub-committee
 Role of the Primary Dealers- provide continuous two-way prices
 Debate currently around:
 Access to two-way prices
 Role of the JSE
 Chairman of BMDC meeting with ASISA FISC on 26 June for
Debt Issuer Services
 Debt Issuance Guidelines for Corporate Bonds
 Worked with Debt Issuers Association (DIA)
 To ensure fair and transparent engagement between Issuers
and Investors on issuance of corporate bonds
 ASISA members monitoring adherence to guidelines
 To develop similar guidelines for Securitisation Issues
 Awaiting input from Securitisation Forum
 Debt Issuers Services WG working on standardised legal terms it
would want included in primary debt issues
Fixed Income Regulatory Issues
 Work Group set up to pick up on issues that relate to interpretation
of Board Notice 80 under CISCA
 Engaged with the FSB on a number of urgent issues
 Will be putting on the table a number of other issues as well
Prudential Committee
 Within context of proposed Twin Peaks regulation National Treasury
set up two committees:
 Prudential and Market Conduct committees
 Prudential committee responsible for all issues that could result in
systemic risk to the South African financial system
 Amongst other issues, this committee will have oversight of:
 Structure of the capital market and its regulation
 Shadow banking
 Banking liquidity and funding
 Basel III implementation
Infrastructure Investment Work Group
 South African infrastructure investment program
 Research Input- interaction with OECD
 International models
 Engagement with relevant parties
 PICC- pipeline of 18 SIPS
 DHET- Student accommodation (SIP 14)
 National Treasury Task Team: Private sector financing of
 To create enabling environment
 Business Leadership SA and Banking Association of SA
 Eskom/Transnet unlocking the Northern Mineral Belt with
Waterberg as catalyst (SIP 1)
 Investigate previous experiences to establish blockages