The Financial Stability Board (FSB) published its ninth progress report reviewing progress made by standard-setting bodies, national and regional authorities and market participants towards meeting the G20 commitments for reforms to global over-the-counter (OTC) derivatives markets.

The report finds that implementation of OTC derivatives market reforms is well underway, with the foundational authority needed to give effect to the full range of these reforms in place in most FSB member jurisdictions. The main findings of the report include:

  • implementation of reforms is most advanced for trade reporting and for higher capital requirements for non-centrally cleared derivatives;
  • there has been further incremental progress to promote central clearing of standardised OTC derivatives. At present five jurisdictions have central clearing requirements in effect for one or more specific product types, and over the next year further progress is anticipated in many jurisdictions for assessing if certain products should be required to be centrally cleared;
  • few jurisdictions have regulatory frameworks in place to promote execution of standardised contracts on organised trading platforms;
  • most jurisdictions are only in the early phases of implementing the BCBS–IOSCO framework for margin requirements for non-centrally cleared derivatives (internationally agreed phase-in periods were recently delayed, and now begin in September 2016); and
  • availability and use of centralised infrastructure to support OTC derivatives reforms continues to expand.

Additionally, the FSB also states that it will continue to monitor and report on OTC derivatives reform implementation progress, including the effects of OTC derivatives reforms over time.

Feedback on the report can be submitted until 24 August 2015.

View OTC Derivatives Market Reforms – Ninth Progress Report on Implementation, 24 July 2015