The Financial Stability Board (FSB) has published three reports concerning the progress on reforms to the over-the-counter (OTC) derivatives markets:

  • Review of OTC derivatives market reforms: Effectiveness and broader effects of the reforms. This report provides a comprehensive review of the OTC derivatives market reforms and their effects;
  • OTC Derivatives Market Reforms: Twelfth Progress Report on Implementation. This report provides a detailed update on progress since 2016 in implementation of the reforms across FSB member jurisdictions; and
  • Progress report on FSB members’ plans to address legal barriers to reporting and accessing OTC derivatives trade data. This reports on progress since the plans were published in August 2016.

Mark Carney, Chair of the FSB, said: “Reforms to OTC derivative markets are replacing a complex and dangerous web of exposures with a more transparent and robust system that better serves the real economy. Global banks now hold over $800bn more collateral against their OTC derivative counterparty exposures, and the coverage of exposures by collateral has doubled to nearly two-thirds. More resilient central counterparties are reducing the risk of contagion to the banking sector from the failure of individual institutions. FSB jurisdictions need to do more, however, to address remaining legal barriers which are preventing authorities from fully realising the benefits of trade reporting.”

View FSB reports on reforms to OTC derivatives markets, 29 June 2017

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