Review of a self-regulatory financial market model in South Africa

Genesis was commissioned by the National Treasury to conduct a technical review of the effectiveness of the SRO (self-regulatory organisation) model in South African financial markets in the context of the move toward a Twin Peaks regulatory framework. The focus of the analysis was on the SRO status of the JSE and STRATE as frontline regulators with delegated authority by the Financial Services Board.

The review consisted of three primary components: An evaluation of the effectiveness and efficiency of the SRO model, economic analysis of the impact of the SRO model on market structure and competition informed by a study of international trends, and a recommendation as to the appropriate model of financial regulation from a set of alternatives. The findings of the report informed the regulatory changes being considered under Twin Peaks.