At first the domestic financial institutions felt the impact of increased competition, but they now seem to have adapted well to the changed circumstances and have introduced various measures to improve their efficiency. The depth, breadth and stature of South Africa’s financial markets has been increased by a number of important developments in recent years.
Challenges in cross-border supervision Let me start with challenges in cross-border supervision. Arrangements for cross-border supervision need to be commensurate with the cross-border systemic risk implications of central clearing. This is particularly true in extreme scenarios in which a CCP has exhausted its prefunded financial buffers.