Implementation of OTC Derivatives Market Reforms: FSB Report

The Financial Stability Board (FSB) has published its fifth progress report on the global implementation of OTC derivative markets reforms.  The reports charts the regulatory reform progress across all 19 FSB member jurisdictions.  In respect of trade reporting it outlines that reporting for at least some asset classes will have come into force for mid 2013.  Issues remain in respect of:

• ensuring the necessary data is reported to a Trade Repository - in connection with data privacy and confidentiality concerns;
• the ability to aggregate data held in Trade Repositories - as different data fields and formats are used so there are challenges in aggregating and comparing data; and
• access to data by authorities – clear and consistent international guidance is needed.

The report includes useful summaries on the national progress of reforms detailing, by country, the status of each country’s legislative and implementation actions.  The details of the availability of Trade Repositories are also reported by asset class and location together with their current operating status.

Progress in meeting the G20 commitments is expected to accelerate over the remainder of 2013 as jurisdictions finalise their legislative and regulatory frameworks.

The FSB calls for regulators when preparing legislation to preserve a sufficient degree of flexibility to allow for the uncertainties of application of requirements on cross-border trades to be resolved without unnecessary market disruption.

RELATED LINK

http://www.financialstabilityboard.org/publications/r_130415.pdf