INTERNATIONAL: FSB report on implementation of OTC derivatives market reforms

Tuesday September 3 2013

The Financial Stability Board (FSB) has published a report to the G20 Leaders summarising progress in over the counter (OTC) derivatives reforms, together with the sixth of the FSB’s semi-annual comprehensive progress reports on implementation of OTC derivatives market reforms.

G20 Leaders agreed in 2009 to a comprehensive reform agenda to improve transparency in these markets, mitigate systemic risk, and protect against market abuse.

To achieve these objectives, the G20 agreed that by end 2012:

• all OTC derivatives contracts should be reported to trade repositories (TRs);

• all standardised contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties (CCPs);

• non-centrally cleared contracts should be subject to higher capital requirements and minimum margining requirements should be developed.

The published reports find that substantial progress has been made by standard- setting bodies, national and regional authorities and market participants toward meeting the G20 commitments, through international policy development, adoption of legislation and regulation, and expansion of infrastructure. However, the reports have also identified areas where further work is needed to complete the reforms and meet the G20 objectives.

Public feedback on the reports should be submitted by 2 October 2013.

Click on the above link for more details.