The Financial Stability Board (FSB) has published its eighth progress report on the implementation of the OTC derivatives market reforms.
The FSB notes that the extent of implementation of detailed regulations varies across jurisdictions and across policy reform areas. The greatest progress to date has been in adopting regulations implementing higher capital requirements for non-centrally cleared derivatives and trade reporting requirements. Implementation in other reform areas is also proceeding, though timetables stretch well into 2015 and beyond.
The FSB also notes that, overall, the shape of the regulatory landscape across jurisdictions has become clearer since its previous report. In particular, there is more certainty around the implementation and functioning of regulation in some of the largest jurisdictions. International standards and guidance in key areas (such as bank capital requirements for central clearing exposures and recovery and resolution for financial market infrastructures) have been finalised. In addition, bilateral and multilateral discussions addressing outstanding cross-border issues have intensified over 2014.
Section 2 of the report and Appendices A to E provide more detail on jurisdictional progress in each commitment area (trade reporting, central clearing, capital and margin requirements, exchanges and electronic trading platforms and cross-border coordination). The FSB states that many authorities are making progress with the implementation of most of the commitment areas, but some practical issues have been identified and are discussed further in section 3 of the report.
View Eighth progress report on implementation of OTC derivatives market reforms, 7 November 2014