The OTC Derivatives Regulators Group (ODRG) has published a report which updates G20 Leaders on how it has addressed or intends to address identified cross-border issues relating to OTC derivatives reforms since the September 2013 St Petersburg summit. The report also discusses areas of focus for the ODRG, including further progress made bilaterally and in other fora.

In the report the ODRG notes that it has continued its work to resolve identified cross-border issues and in this regard further progress has been made by reaching understandings on the topics of organised trading platforms (OTPs) and the implementation of the G20 trading commitment, where its focus is on the status of foreign OTPs and OTP eligibility for discharging trading mandates. ODRG members continue to discuss the development of a framework for early consultation among authorities on mandatory trading determinations.

In relation to the treatment of branches and affiliates, the report states that ODRG members have focused on defining in what circumstances guarantor jurisdictions may extend regulation to transactions undertaken by guaranteed foreign affiliates. While a definitive resolution has not been reached, a range of factors relevant to this issue have been identified and their application to particular cases continues to be explored. The ODRG also intends to explore the treatment of branches and non-guaranteed affiliates going forward.

The Annex attached to the report sets out in detail the progress made by the ODRG. It covers:

  • a report to G20 Leaders since the 2013 Leaders’ summit;
  • identified cross-border issues the ODRG has addressed or intends to address;
  • identified cross-border issues on which ODRG members continue to work to implement understandings reached previously; and
  • progress on issues identified by the ODRG as appropriate for other fora or bilateral engagement.

View Report of the OTC Derivatives Regulators’ Group to G20 Leaders on cross-border implementation issues, 7 November 2014