1 Agenda  Bond Market Development  Debt Issuer Services  Fixed Income Regulatory Issues  Prudential Committee  Infrastructure Investment Work Group Town Hall Meeting June 2013 Adré Smit

2 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 (BMDC)  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 update

3 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

4 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

5 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

6 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 infrastructure  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