In September 2009, G20 leaders agreed that as part of their overall commitments to reforming the over-the-counter (OTC) derivatives market, that OTC derivative contracts should be reported to trade repositories (TRs), and asked the Financial Stability Board (FSB) and its members to assess regularly implementation and whether it is sufficient to improve transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.

The FSB has now released two reports on the progress made in implementing the OTC derivatives market reforms. These are:

  • Peer Review Report – Thematic Review on OTC Derivatives Trade Reporting. In summary, the report notes that most jurisdictions have made and are making substantial reforms to their regulatory regimes to meet the G20 commitment that OTC derivatives should be reported to TRs, and good progress in implementation is underway. To ensure that reporting of OTC derivative transactions delivers on the G20 goals, further work needs to be undertaken, including addressing various issues that span the extent of reporting, legal barriers to reporting and authorities’ access, and operational and technical frameworks to support data quality and usability. To monitor progress on the report’s recommendations, FSB member jurisdictions will be asked to report to the FSB by June 2016 on their planned actions. The FSB will also monitor progress on these recommendations as part of its regular reporting on the implementation of OTC derivatives market reforms; and
  • Tenth Progress Report on Implementation – OTC Derivatives Market Reforms. In summary, the report notes that FSB member jurisdictions continue to take steps to implement OTC derivatives market reforms. Overall, 12 jurisdictions have central clearing frameworks in force that apply to over 90% of transactions in their markets, and in eight jurisdictions platform trading frameworks are in force that apply to over 90% of transactions. Also, the implementation of capital requirements for non-centrally cleared derivatives has remained most advanced for some time, and there have been no changes in this reform area since the FSB’s July 2015 progress report. Most jurisdictions are in the early phases of implementing the BCBS-IOSCO framework for margin requirements for non-centrally cleared derivatives; since July two jurisdictions have proposed standards in this area. Finally, almost all FSB jurisdictions have in force trade reporting requirements covering over 90% of transactions in their markets.

View FSB reports describe progress in implementing OTC derivatives market reforms, and highlight where further work is needed, 4 November 2015