The Financial Stability Board (FSB) has published two reports on the implementation of key aspects of reforms to the over-the-counter (OTC) derivatives market.

The first report, OTC Derivatives Market Reforms: Eleventh Progress Report on Implementation, sets out progress on implementation of the reforms to the OTC derivatives market agreed by the G20. The report finds that progress implementing the reforms is continuing. Trade reporting requirements for OTC derivatives and higher capital requirements for non-centrally cleared derivatives (NCCDs) are mostly in force; central clearing frameworks are being implemented. However, a significant number of jurisdictions may not have margin requirements for NCCDs in force in accordance with the internationally agreed implementation schedule and platform trading frameworks appear to be relatively undeveloped in most jurisdictions.

The second report, Report on FSB members’ plans to address legal barriers to reporting and accessing OTC derivatives transaction data, summarises FSB members’ planned action to remove legal barriers to reporting complete transaction information to trade repositories and to authorities’ access to data held in trade repositories. The report finds that while some work is in progress to remove barriers to both reporting of, and access to, complete OTC derivatives transaction information, significant work remains across FSB member jurisdictions to achieve this, including that concrete plans to address the barriers have yet to be formulated in a number of cases. Further significant planning and implementation efforts appear to be needed in order to meet the agreed June 2018 deadlines. A further progress report on plans to remove legal barriers will be published ahead of the G20 leaders’ summit in July 2017.

View FSB publishes progress reports on implementation of reforms to the OTC derivatives market and on removal of barriers to trade reporting, 26 August 2016

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