South Africa is already known for being a one of the best-regulated financial markets – ranked first in the world by the World Economic Forum, no less. Now the country’s desire to keep in line with international market standards has prompted the Johannesburg Stock Exchange to strengthen its exchange traded derivatives market with a new default fund to protect investors.

The fund, announced on March 14, is aimed at protecting investors in the event of a clearing member defaulting – a necessity for clearing houses following the 2008 financial crisis. The question is – in the event it is needed, who ultimately pays? Continue reading »