Regulators seek to plug derivatives data gaps

Global regulators have set out plans for reducing the "data gaps" in OTC derivatives trading that are hitting efforts to assess systemic risk in the market.

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Regulators seek to plug derivatives data gaps

Editorial

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Following the collapse of Lehman Brothers, the G20 called on measures to strengthen rules on OTC derivative - increasing the use of clearing houses and trade repositories - to improve transparency.

In their latest report on the matter, the Committee on Payment and Settlement Systems (CPSS) and International Organization of Securities Commissions (IOSCO) outlines the OTC derivatives data that they say should be collected, stored and disseminated by trade repositories.

The report calls for data on netting arrangements between counterparties on bilateral swaps, market values of individual transactions and assets that are applied to portfolios.

It also calls for a system of standard legal entity identifiers (LEIs), calling it an "essential tool" for aggregation of such data. It says trade repositories should actively participate in the LEI's development and use the system once it becomes available.

You can read the full report - which is now open to public consultation - here:

Download the document now 840.2 kb (PDF File)
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