USER ADMINISTRATOR PROCEDURES
Application for Authorised User Status
This document sets out the User Administration Procedures that are applied by the Bond Exchange of
South Africa Limited (“BESA”) in processing an application for authorised user status. This document is
intended for use within BESA and is not intended for use for any other purpose.
Submitted to
FSB
Prepared by
Market Regulation Division
Date
29 May 2009
Document type
Working Paper
Status
Draft
Version
0.1
Confidentiality Notice
Unless otherwise indicated, the contents of this document, including any attachments hereto are proprietary to the Bond Exchange of South Africa and are
confidential, legally privileged and protected by law; and may not, without the prior written consent of the chief executive officer of the Exchange, be disclosed to
any third party, copied or distributed.
Copyright© Bond Exchange of South Africa
TABLE OF CONTENTS
1
INTRODUCTION ........................................................................................................................... 3
2
APPLICATION FOR USER STATUS ........................................................................................ 4
2.1
Overview .................................................................................................................................. 4
2.2
Application Process ................................................................................................................. 4
2.2.1
2.2.2
3
4
5
Legal & Compliance .................................................................................................... 5
Systems Implementation ............................................................................................ 5
2.3
Mapped Process ...................................................................................................................... 7
2.4
Application Process ................................................................................................................. 9
2.5
Choosing a Lead Regulator ..................................................................................................... 9
2.6
Choosing a Settlement Agent/ Participant ............................................................................. 10
OFFICER REGISTRATION ....................................................................................................... 11
3.1
Objective ................................................................................................................................ 11
3.2
Procedures Performed ........................................................................................................... 11
3.3
Prescribed Examinations ....................................................................................................... 12
3.4
First Time Registrations ......................................................................................................... 12
3.5
Applicable Exemptions .......................................................................................................... 13
3.6
South African Institute of Financial Markets .......................................................................... 13
3.7
Conditional Dispensation ....................................................................................................... 14
3.8
Representative and Alternate Representative Officers ......................................................... 15
TRADER REGISTRATION ........................................................................................................ 16
4.1
Application for Registration .................................................................................................... 16
4.2
Procedures Performed ........................................................................................................... 16
4.3
Prescribed Examinations ....................................................................................................... 17
4.4
Conditional Dispensation ....................................................................................................... 17
4.5
Exemptions ............................................................................................................................ 18
4.6
Usage of Codes ..................................................................................................................... 19
TERMINATION OF USER STATUS ........................................................................................ 20
5.1
Procedures Performed ........................................................................................................... 20
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 2 of 20
1
INTRODUCTION
The application for authorised user status is the initial step that authorised users goes through
before they can be admitted to participate on the bond platform. This process is a key step in
ensuring that the potential authorised user is legible to be an authorised user, is of sound
financial standing, that its Directors and staff are sufficiently skilled and competent and of the
right integrity and qualifies on all the regulatory requirements and therefore may not introduce
risk on the market. This step is viewed as a major control tool to managing risk and is thus
quite a vigorous and involved process.
This document sets out the procedures (application and termination of authorised user status)
that are applied by the Market Regulation Division (MRD) in processing the application for
authorised user status.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 3 of 20
2
APPLICATION FOR USER STATUS
2.1
Overview
On application for authorised user status, the applicant has to adhere to the highest standard
of integrity and code of ethics as determined by the Board. To ensure that the applicant
sufficiently complies with the requirements as set out in the Rules, Directives and the Act, the
MRD has to review all documentation set out in section 2.2.1 and establish that it is complete
and correct.
Read together, the Securities Services Act (“SSA”) and the Rules stipulate minimum
admission standards for authorised user status. Properly applied, these standards help to
ensure that authorised users, their management and trading staff are able to meet the
expectations of the investing public with regard to the exercise of fiduciary responsibility, due
care & skill and fair trading. Only entities which maintain at least the minimum capital
prescribed by law are admitted as authorised users.
The SSA and the Rules prescribe minimum requirements for authorised user status, which
include –

Incorporation or registration as a company under South African law or the laws of an
approved foreign jurisdiction in the case of juristic persons;
Compliance with minimum capital requirements as well as complying with the officer and
trader registration standards relating to integrity, character and qualifications;
Appointment of a Lead Regulator in consultation with the Registrar where applicable and
the Participant through which the authorised user will facilitate settlement;
Implementation of the necessary system resources for trade reporting and settlement;
Compliance with the Rules relating to fidelity cover, guarantee fund contributions, trading
and settlement.
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2.2
Application Process
The applicable form can be found on the website www.bondexchange.co.za or the applicant
can contact the User Administrator on (011) 215-4108 or melissav@bondexchange.co.za.
The Authorised user status registration process is comprised of two components –
Legal & Compliance1:
filing the required returns with the MRD for review &
approval
Systems implementation:
loading the applicant on the relevant BTB and Strate
systems
1
See Section 2.2.1
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Application for User status
29 May 2009
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These two processes may proceed in parallel and timing is largely dependent on the
necessary Telkom lines being available in order to connect to the BESA trade capture
systems (BTB) and (Intersec).
2.2.1
Legal & Compliance
Listed below is a checklist of the various application forms and additional correspondence
which must be filed with MRD on submission of application for Authorised user status.
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Application for Authorised user status on Form F2.2.1.2[A]
Resolution of the Board of Directors approving the application
Memorandum and Articles of Association
Letter of Good Standing from the Board of Directors of the entity applying for authorised
user status
Letter from a foreign regulatory authority confirming that the foreign applicant is a
member of that regulatory authority
Business Plan-short, medium and long term
Directors’ Curriculum Vitaes
Certified copy of the company’s registration certificate
2 copies of latest annual financial statements
If the entity applying for authorised user status is new and does not have a business
track record-3 month’s bank statements are required
Correspondence confirming current lead regulator and choice of BESA as lead regulator
if the juristic person is not incorporated in South Africa
Name and address of auditors
Risk Management Plans /processes
Audit certificate confirming adequate fidelity cover held by firm
System Capture Form
Form F2.2.1.2[B]
Officer Registrations
Form F2.4.1[A]
Trader Registrations
Form F2.5.1[A]
Capital Adequacy Returns
FormsF9.3.1[A]/F9.3.2[A]/ F9.3.2[B]
Confirmation that communication lines to facilitate systems’ connectivity are in place
Correspondence from the Participant confirming –
 acceptance of the appointment as Participant;
 that the necessary Participant agreements have been signed;
 the date that the Participant services will commence.
Any additional information that maybe required
It is recommended that the applicant submit copies of the application forms before
sending originals, as any items outstanding on all application forms will not be
completed by the User Administrator.
Once the noting of outstanding items has been sent, the completed original
application forms can be sent.
No forms will be accepted if they are incomplete.
2.2.2
Systems Implementation
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 5 of 20
In order for BESA to load an authorised user onto the system, Form F2.2.1.2 [B] System
Capture Form is to be submitted.
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The authorised user ensures that the relevant hardware and communication lines to
facilitate systems connectivity are in place.
BESA MRD will forward the System Capture Form for the new authorised user to be
loaded. BESA Client Interactive Centre (CIC) contacts the Service Provider for the
Official ID and Password in order for the service provider and STRATE to connect to
the relevant systems and to connect the authorised user to the BTB System.
Confirmation is then sent to the BESA MRD that the authorised user has been
loaded.
The back-office user names, contact numbers and e-mail addresses are requested
from the authorised user by the CIC.
The User List is updated with the new back-office users.
Trader registrations authorised by the BESA MRD are forwarded to the CIC for
loading onto BTB. The trader is then added to the BTB User List.
Confirmation is sent to the MRD that the trader has been loaded.
The trader is then issued, via facsimile or electronically, with a unique trader code.
Once these procedures are completed, the IT person at the authorised user firm may
begin the set-up for BTB or other system resources and infrastructure that would
enable connectivity to BTB as approved by BESA, the BESA CIC will assist the user
with the user ID.
Once the systems are installed, BESA recommends to the authorised user firm that
on-site training sessions for the relevant back-office and trading staff should be
arranged. The training sessions last between one to two hours and are facilitated by
BESA CIC.
The authorised user firm’s Compliance Officer is required to submit written notification
should a back-office staff member or trader leave the employ of the user firm. The
person’s details are then removed from the trading system.
It is the responsibility of the user firm to ensure that all back-office staff is suitably
qualified.
Listed below is a checklist of entry-level requirements and hardware 

Confirmation on an official letterhead that the applicable communication line is
installed and operational;
For diginet lines circuit numbers must be supplied in order for our IT department to
liaise with Telkom; and
Once BESA CIC receives the System Capture Form for the loading of a new authorised user,
the CIC contacts the Service Provider for the Official ID and Password.
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The authorised user is loaded on STRATE Ltd’s UAT.
A Service Level Agreement is put in place between STRATE Ltd and the Service
Provider.
The BESA CIC sends confirmation to the BESA MRD that the authorised user has
been loaded.
Bond Exchange of South Africa
Application for User status
29 May 2009
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2.3
The Participant loads the relevant settlement accounts.
The Participant and Service Provider will liaise to ensure that the relevant links are in
place.
Once the application is approved it is then loaded onto Production,
Mapped Process
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 7 of 20
New Authorised User Registration
Step 1
BESA receives
completed
membership pack
19 May 2009
Membership Application
System Capture form
Officer Registrations
Trader Registrations
Capital Adequacy Returns
Form F4.2.1 [A]
Form F4.2.1 [B]
Form F4.5.1 [A]
Form F4.6.1 [A]
Form F9.3.1 [A]
Form F9.3.2 [A]
Form F9.3.2 [B]
Resolution of the Board of Directors
Certificate of Good Standing
Certified copy of company registration certificate
X2 copies of latest annual financial statements
If no business track record, three month bank statements
Correspondence confirming current lead regulator and choosing BESA
as lead regulator if juristic person is not incorporated in South Africa
Confirmation of Auditors
Audit certificate confirming adequate fidelity cover held by firm
Confirmation that applicable communication line is installed or applied for
Name change documentation
Memorandum and Articles of Association
Business Model
Directors CV’s
Step 2
MRD review
documentation and
actions them as
follows
(Process can run
simultaneously with
Step 3)
 Set up meeting with new applicant to motivate their application to
BESA MRD (Head, Compliance, Legal & User Admin)
 Request further information
Forward letter noting
outstanding items
System Capture Form fwd to:
 CIC & BESA IT (BTB installed on Test Environment)
 Lead Regulator
 Participant
 STRATE
Timeline: Dependant if Telkom line is installed and operative
5 Business days or 6 weeks if not operative
Service Level Agreement effected between
STRATE and Service Provider
Step 3
MRD to review
outstanding
documentation
submitted
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5 Days
Notify BTA/DTA of application
BTA/DTA approves application by issuing a certificate of
Good standing
MRD sends
Regulatory Bulletin to
notify the market
MRD to visit
applicant to view
premises and
systems.
No objection
User Admin to
advise
participants to
load applicant on
Production
environment
Step 4
MRD to do a
checklist to see if
everything is in
order
Bond Exchange of South Africa
Application for User status
29 May 2009
MRD (Head,
Compliance,
Legal, User
Admin to approve
Objection received
The objecting party needs
to give reasons on why
they are objecting.
MRD will review the
objection and make a ruling
or a finding.
Board requested
to note the
application
Members are notified of
the approval of the new
applicant via Regulatory
Bulletin
Page 8 of 20
2.4
Application Process
On receipt of the fully completed information pack, BESA will action the application as follows:
–
 The forms and documentation are reviewed by the MRD and a letter forwarded to the
applicant noting any outstanding items.
 Applicant to motivate application to MRD
 Request and review of further information and MRD recommendation to BTA on
application
 On receipt of outstanding items and recommendation of the application, STRATE and
BESA CIC are notified of the application and requested to load the applicant onto the
respective STRATE Ltd and BTB systems. The Service Level Agreement between
STRATE Ltd and Service Provider is effected.
 The relevant market association is notified of the application for authorised user
status and the market association issues an approval certificate or a certificate of
good standing.
 A Regulatory Bulletin is distributed to market participants notifying them of the new
application. As per the Rules, the Authorised users have 14 days within which to
object in writing to the application.
 Site visit to applicant’s premises to inspect infrastructure, systems and readiness
 Initial Capital Adequacy returns are forwarded to the Surveillance Analyst of the
Exchange for review & sign-off.
 Traders are loaded onto the BTB trade capture system.
 Head: Market Regulation is requested to review & approve the application.
 The Board is requested to note the new application.
 Authorised User’s are notified of the approval of the new applicant via a Regulatory
Bulletin.
2.5
Appointment of a Lead Regulator
BESA Rules require authorised users to elect a Lead Regulator to monitor their adherence to
minimum capital adequacy standards. Some BESA authorised users are lead regulated by
the JSE and the Banking Supervision of the South African Reserve Bank. Any juristic person
applying for BESA authorised user status is required to submit documentation confirming the
current lead regulator, i.e. the regulatory authority. In the event that the juristic person is not
incorporated in South Africa, the applicant is required to elect BESA as their Lead Regulator.
An authorised user is only required to report capital adequacy compliance to their Lead
Regulator. On submission of an authorised user status application, an applicant must include
either –
 Correspondence from their Lead Regulator confirming that the firms capital is adequate
for the level of business undertaken; or
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 9 of 20

2.6
A completed set of capital adequacy forms as provided by BESA, i.e. forms F9.3.1
[A]/F9.3.2 [A]/F9.3.2 [B].
Appointment of a Settlement Agent/ Participant
Settlement Agents or Participants as they are called perform settlement electronically on
behalf of their clients. Settlement is performed not only for BESA authorised users but also
down to the individual client level, that is, who ever is the ultimate buyer or seller. Every
applicant for authorised user status is required to enter into a business relationship with a
Participant where the Participant agrees to facilitate settlement on behalf of the applicant. The
contact details of the Participants who facilitate settlement on behalf of BESA authorised
users and their clients are detailed below. Participants are regulated by Strate, the licensed
central securities depository. A complete list of all the approved Participants can be obtained
from Strate.
Listed below are contact numbers for the different authorised Settlement Agents –
Company
ABSA Bank Ltd
First National Bank
Nedbank Ltd
Standard Bank Corporate
&
Investment Banking
Strate Ltd
Contact
Rudolph Brecher
Priscilla Abrahams
Olivier August
Rudolphb@absa.co.za
Priscilla.Abrahams@firstrandbank.co.za
OliverA@Nedbank.co.za
Telephone
+27 11 350-7839
+27 11 371-3342
+27 11 667-1294
Fax
+27 11 350-7811/2
+27 11 371-7964
+27 11 667-1705
Pepsi Vermeulen
Pepsi.vermeulen@standardbank.co.za
+27 11 636 1569
+27 11 636-3817
Monica Olwagen
monicao@strate.co.za
+27 11 759-5360
+27 11 759-5500
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 10 of 20
3
OFFICER REGISTRATION
3.1
Objective
In terms of Rule C2.4, on approval of authorised user status, an authorised user is obliged to
appoint and register a Compliance Officer, Representative Officer and their respective
alternates to fulfil specific duties as set out in the Rules. An authorised user is not permitted to
continue its business activity unless if these requirements have been met.
An application for the registration of a Compliance Officer, Representative Officer and the
respective Alternates shall be made on Form F2.4.1[A], accompanied by a certified copy of an
identification document and successful completion of the prescribed examinations. The
prescribed examination requirement in terms of Directive C2.4.3.2 is only applicable to the
Compliance Officer and Alternate Compliance Officer and not the Representative and
Alternate Representative Officer.
3.2
Procedures Performed
The applicable form can be found on the website www.bondexchange.co.za or the applicant
can contact the User Administrator on (011) 215-4108 or melissav@bondexchange.co.za.
A separate application form F2.4.1 [A] must be completed and submitted to MRD in respect of
every prescribed officer employed by a User firm.
To apply for registration the following steps need to be completed –
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Complete all the sections of the form and answer all applicable questions in full;
Ensure that the declaration in Section 3 is read and understood and that all “Yes”
answers are fully explained on a separate page;
Attach all supporting documentation as specified in Section 2;
Submit the original form and supporting documentation for the attention of –
Ms. Melissa Vermeulen
User Administrator: Market Regulation Division
Tel: (011) 215-4108
Fax: (011) 215-4100
Email: melissav@bondexchange.co.za
Mezzanine Level
PO Box 77
30 Melrose Boulevard
Melrose Arch
2076
All responses must be printed in black in or typed, and all signatures must be original and
supporting documents must be certified.
All applications must be completed in full and where they are incomplete; the application will
not be processed. The MRD does not complete or amend any application forms on behalf of
an applicant.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 11 of 20
In terms of these procedures, it is a requirement of the Rules that there should be segregation
of duties of the front office from the middle and back office; it is on that basis that we require
that the Compliance and Alternate Compliance Officer not be involved in any trading
activities, or the administration of trading for proper supervision.
3.3
Prescribed Examinations
Compliance Officers and Alternate Compliance Officers employed by BESA Authorised Users
must comply with the minimum registration requirements as prescribed in BESA Rules,
including prescribed examination requirements, prior to being registered with BESA.
To ensure that Registered Officers meet certain minimum standards all Compliance Officers
and Alternate Compliance Officers must obtain a pass in the Registered Person Examination
(“RPE”), or the equivalent institution recognised and/or approved as provider of accreditation
and/or training for market professionals in the authorised user’s jurisdiction, of the following
modules or equivalent modules –

Introduction to Financial Markets

Bonds and Long Term Debt Instruments
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Regulations of the South African Financial Markets

Rules of the Bond Exchange of South Africa
Compliance and Alternate Compliance Officers who have oversight over authorised users’
interest rate derivative trading activities must also obtain a pass in the additional module of
the RPE or an equivalent module in the respective jurisdiction –
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3.4
Derivatives
First Time Registrations
On approval of a new user firm where the Compliance Officer or Alternate Compliance Officer
does not have the requirement, the following will apply
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Fully completed Form F2.4.1[A] with all relevant supporting documentation
Proof of registration with the South African Institute of Financial Markets (SAIFM) or
the equivalent institution recognised and/or approved as provider of accreditation
and/or training for market professionals in the Authorised User’s jurisdiction
Dates of examination
The officer needs to complete the examinations within 6 months on submission of the
registration form
In the event that the requirement has not been met at the expiry of the extension a
penalty shall be imposed and BESA reserves the right to require the authorised user
to register another compliance officer
Bond Exchange of South Africa
Application for User status
29 May 2009
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3.5
Applicable Exemptions
Where the Compliance Officer or Alternate Compliance Officer does not fulfil the above
requirements, the following shall apply –
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Proof of registration with the South African Institute of Financial Markets (“SAIFM”), or
proof of registration with the equivalent institution recognized and/or approved in the
authorised user’s jurisdiction as a provider of accreditation and training for market
professionals
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Proof of dates on which examinations will be written
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Proof of completion of the examinations within 6 months of submission of the
registration form
BESA shall at its sole discretion decide on the professional qualifications and/or
accreditations to recognise for the purposes of granting Compliance Officers and Alternative
Compliance Officers exemptions from the following modules:
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Introduction to Financial Markets
Bonds and Long Term Debt Markets
Derivatives
The Rules of the Bond Exchange of South Africa and the Regulations of the South African
Financial Markets of the Registered Person Examination are mandatory modules which must
be successfully completed before registration or within the initial 6 month dispensation period.
All Compliance Officers and Alternate Compliance Officers shall be required to register with
the South African Institute of Financial Markets for the purposes of completing the Rules of
the Bond Exchange of South Africa and the Regulations of the South African Financial
Markets modules.
3.6
South African Institute of Financial Markets
Candidates should contact the South African Institute of Financial Markets for additional
information for examinations –
Ms Christie van Wyngaardt
General Manager
Tel: (011) 802-4768
Fax: (011) 802-3476
Email: Christie@saifm.co.za
Web: www.saifm.co.za or www.virtualexaminationcentre.com
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 13 of 20
3.7
Conditional Dispensation
Upon initial registration as a Compliance or Alternate Compliance Officer, Registered Officers
who do not have the prescribed examination will be granted a 6 month dispensation period in
which they are required to successfully complete the prescribed examinations.
Failure to fulfil this requirement shall incur a penalty in accordance with Directive C12.1.3.2.
Compliance Officers and Alternate Compliance Officers are required to submit documentation
explaining the reasons behind the failure to fulfil the requirements. BESA shall at its sole
discretion decide on granting such Compliance Officer and/or Alternate Compliance Officer an
additional dispensation period of 6 months to fulfil the requirements.
Failure to fulfil the requirements after due consideration has been granted to extend the initial
dispensation period by an additional 6 months shall incur an additional penalty in accordance
with Directive C12.1.3.2.
Such Compliance Officer(s) and Alternate Compliance Officer(s) shall not be granted any
additional dispensation and shall be de-registered.
Authorised users are liable for the penalties imposed in accordance with Directive C2.4.3.
Compliance Officers and Alternate Compliance Officers previously registered with BESA who
voluntarily leave the employ of an Authorised User firm and subsequently re-enter the market
with another Authorised User firm shall comply with the following requirements:
Within One Year:
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Compliance Officers and/or Alternate Compliance Officers who have not been
registered with BESA for a period of 12 months or less shall not be required to write
any examinations, providing that such Officers have previously written such
examinations.
After One Year:
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Compliance Officers and/or Alternate Compliance Officers who have not been
registered with BESA for a period of more than 12 months, but less than 3 years, shall
be required to write the Rules of the Bond Exchange of South Africa and the
Regulations of the South African Financial Markets modules.
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Such Compliance Officers or Alternate Compliance Officers shall not however be
required to write any other technical examinations.
After Three Years:
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Any conditional dispensation previously granted to Compliance Officers and/or
Alternate Compliance Officers who have not been registered with BESA for a period of
at least 3 years will have lapsed.
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Such Compliance Officers or Alternate Compliance Officers shall be required to write
all the requisite modules in order to be registered.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 14 of 20
De-registration Provision:
Should a Compliance Officer or Alternate Compliance Officer leave the employ of the
authorised user firm under whose name they were registered, their registration status shall be
suspended and such Registered Officers shall be required to re-register with BESA on
employment with another authorised user firm. It is the responsibility of both the Compliance
Officer and/or the Alternate Compliance Officer to notify BESA on leaving the employ of an
authorised user firm.
3.8
Representative and Alternate Representative Officers
In addition to the registration of Compliance Officers and Alternate Compliance Officers,
Authorised Users must register a Representative and Alternate Representative Officer in the
same manner as provided for in Rule C2.4.4. Such registration shall be made on Form2.4.1
[A].
The prescribed examinations referred to in Directive C2.4.3 are not applicable to the
Registered Representative and Alternate Representative Officers.
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Application for User status
29 May 2009
Page 15 of 20
4
TRADER REGISTRATION
4.1
Application for Registration
In terms of Rule C2.5, on approval of authorised user status, an authorised user must appoint
and register one or more traders.
The trader must prior to concluding the buying and selling of listed securities, comply with
qualification requirements and must agree to be bound by the Rules, Directives and the Act. .
4.2
Procedures Performed
The applicable form can be found on the website www.bondexchange.co.za or the applicant
can contact the User Administrator on (011) 215-4108 or melissav@bondexchange.co.za.
No person employed by or associated with a BESA authorised user may conclude trades in
BESA listed instruments nor may such person access the BTB trade capture system unless
registered as a trader with BESA.
A separate application form F2.5.1 [A] must be completed and submitted to MRD in respect of
every prescribed trader employed by a User firm.
To apply for registration the following steps need to be completed –
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Complete all the sections of the form and answer all applicable questions in full
Ensure that the declaration in Section 3 is read and understood and that all “Yes”
answers are fully explained on a separate page
Attach all supporting documentation as specified in Section 3
Submit the original form and supporting documentation for the attention of –
Ms. Melissa Vermeulen
User Administrator: Market Regulation Division
Tel: (011) 215-4108
Fax: (011) 215-4100
Email: melissav@bondexchange.co.za
Mezzanine Level
PO Box 77
30 Melrose Boulevard
Melrose Arch
2076
All responses must be printed in black ink or typed, and all signatures must be original and
supporting documents must be certified.
All applications must be completed in full and where they are incomplete; the application will
not be processed. The Market Regulation Division does not complete or amend any
application forms on behalf of an applicant.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 16 of 20
4.3
Prescribed Examinations
Traders employed by BESA authorised users must comply with the minimum registration
requirements as prescribed in the Rules, including prescribed examination requirements prior
to being registered as an authorised user.
To ensure that Traders meet certain minimum standards all Traders must obtain a pass in the
Registered Person Examination (“RPE”), or the equivalent institution recognised and/or
approved as provider of accreditation and/or training for market professionals in the
prospective authorised user’s jurisdiction of the following modules or equivalent modules –

Introduction to Financial Markets

Bonds and Long Term Debt Instruments

Rules of the Bond Exchange of South Africa

Money Markets
Traders who are responsible for the Authorised Users’ interest rate derivatives trading
activities must also obtain a pass in the additional module of the RPE –

4.4
Derivatives
Conditional Dispensation
A Trader previously registered with BESA who voluntarily leaves the employ of an Authorised
User and subsequently re-enters the market with another Authorised User shall comply with
the following requirements:
Within One Year:

A Trader who has not been registered with BESA for a period of 12 months or less
shall not be required to write any examinations.
After One Year:

A Trader who has not been registered with BESA for a period of more than 12 months,
but less than 3 years, shall be required to write the Rules of the Bond Exchange of
South Africa.
After Three Years:

A Trader who has not been registered with BESA for a period of 3 years or more, any
conditional dispensation previously granted by BESA shall have lapsed.

Such Trader(s) shall be required to write all the requisite modules in order to be
registered.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 17 of 20
4.5

Authorised Users are not permitted to allow such Trader(s) to conclude transactions in
BESA listed securities until they have fulfilled the qualification requirements.

Failure to adhere to this requirement shall attract a penalty in accordance with
Directive C12.1.3.2.
Applicable Exemptions
Where the Trader does not fulfil the above requirements, the following shall apply –

Proof of registration with the South African Institute of Financial Markets ("SAIFM”), or
proof of registration with the equivalent institution recognized and/or approved in the
authorised user’s jurisdiction as a provider of accreditation and/or training for market
professionals

Proof of dates on which examinations will be written

Such Trader must complete the examinations prior to being registered with BESA

Proof of any conditional dispensation granted by BESA previously
BESA shall at its sole discretion decide on the professional qualifications and/or
accreditations to recognise for the purposes of granting Traders exemptions from the
following modules:

Introduction to Financial Markets

Bonds and Long Term Debt Markets

Money Markets

Derivatives
Authorised user is required to submit documentation for the purposes of any exemptions that
are applied for.
The Rules of the Bond Exchange of South Africa is a mandatory Registered Persons
Examination module which must be successfully completed before registration or within the 6
month dispensation period.
All Traders shall be required to register with the South African Institute of Financial Markets
for the purposes of completing the Rules of the Bond Exchange of South Africa module.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 18 of 20
4.6
Usage of Codes
Registration of Traders is handled by the Market Regulation Division. Please submit written
notification to our User Administrator at the MRD on marketregulation@bondexchange.co.za
should any of your registration details change.
The allocation of Trader codes is facilitated by the CIC of BESA only on instruction from the
MRD.
Should a Trader leave the employ of the Authorised User firm under whose name they were
registered, their registration will be suspended and they will be required to re-register with
BESA on employment with another Authorised User firm.
It is the responsibility of the Compliance Officer to notify BESA on any change of particulars
relating to Authorised User Traders. Failure to do so shall attract a penalty in accordance with
Directive C12.1.3.2
A fine shall be imposed in accordance with Directive C12.1.3.2 should an authorised user
Trader be found to be utilising an un-authorised trader code.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 19 of 20
5
TERMINATION OF USER STATUS
5.1
Procedures Performed
An authorised user who wishes to resign authorised user status is required to –




Submit written notice of the voluntary intention to resign authorised user status to the
MRD, at least one calendar month prior to the proposed date of resignation.
Liaise with the MRD to ensure notice was received and to confirm any outstanding
obligations as prescribed in the Rules.
Ensure that all financial and Settlement obligations to be discharged prior to resignation
have been approved.
authorised user should note that they will still be liable for membership fees in the notice
period.
The Bond Exchange of South Africa Limited will –



Notify the market of the intention to resign;
Notify the market association of the authorised user’s intention to resign and approves
resignation on the recommendation of management.
Notify the market via a Regulatory Bulletin of resignation being effective.
Bond Exchange of South Africa
Application for User status
29 May 2009
Page 20 of 20