The Financial Stability Board (FSB) has published its seventh 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.

Although the report highlights that significant progress has been made with international policy development and the adoption of legislation and regulation in areas such as trade reporting, capital requirements and central clearing, further work is still required. Thus, authorities still need to:

  • put in place remaining legislation and regulation promptly, and in a form flexible enough to respond to issues of cross-border consistency;
  • provide clarity on their processes for making equivalency or comparability decisions including considering whether additional authority may be needed to defer to other jurisdictions’ regimes; and
  • continue to closely co-ordinate and co-operate, as needed, to promptly seek to resolve cross-border regulatory issues when they are identified.

Additionally, the FSB also states that it will continue to monitor jurisdictions’ implementation of the OTC derivatives reform programme, as well as the extent to which the implemented reforms meet the G20’s underlying goals of improving transparency, mitigating systemic risk and protecting against market abuse.

Feedback on the report can be submitted until 8 May 2014. The FSB will publish its next progress report ahead of the November 2014 G20 leader’s summit.

View Press Release: Progress reports on OTC derivatives reforms, 8 April 2014