General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 29, 2017

FSB published three reports setting out progress on reforms to over-the-counter (OTC) derivatives markets. These reforms are trade reporting of OTC derivatives; central clearing and exchange or electronic platform trading of standardized OTC derivatives; and higher capital and minimum margin requirements for non-centrally cleared derivatives. The three reports look at the effectiveness of these reforms and their broader effects since the crisis; progress in implementation since June 2016; and progress in addressing legal barriers to reporting and accessing OTC derivatives trade data.

The report on review of OTC derivatives market reforms, which will be delivered to the Hamburg G20 Summit, finds that implementation of the reforms is now well-progressed. However, this has taken longer than originally intended due to the scale and complexity of the reforms and other challenges. Implementation is still ongoing and is generally most advanced in the largest OTC derivatives markets. Further effort will be required to finish the job. Further study should be made of the effects of the reforms in protecting against market abuse. Meaningful progress has been made toward mitigating systemic risk and improving transparency, with some authorities reporting use of trade repository data for market surveillance purposes. However, significant challenges remain and it is important to complete work quickly to improve the quality of, and ability to aggregate, trade repository data, including by removing legal barriers to the full reporting and sharing of such data. In addition, cross-border cooperation, including over the timing of implementation, is important to help reduce market fragmentation.

 

The twelfth progress report on implementation of OTC derivative reforms reports the latest steps taken by jurisdictions since June 2016. Since the last progress report, the number of FSB member jurisdictions with comprehensive margining requirements for non-centrally cleared derivatives increased by 11 to a total of 14. However, 10 jurisdictions still do not have margin requirements in force in accordance with the internationally agreed implementation schedule for these reforms, and these jurisdictions should urgently take steps to implement these reforms. Comprehensive trade reporting requirements for OTC derivatives and higher interim capital requirements for non-centrally cleared derivatives are now mostly in force across member jurisdictions. Since June 2016, progress continued, albeit at a slower pace, in implementing central clearing frameworks, final capital requirements for non-centrally cleared derivatives, and platform trading requirements. The number of central counterparties (CCPs) available to clear OTC derivatives increased to 32 and cross-border availability of CCPs has also increased. Authorization of new trade repositories also continued. FSB, working with standard-setting bodies, will use its new post-implementation evaluation framework (to be published ahead of the July G20 Summit) to assess the interaction of the reforms on incentives to centrally clear OTC derivatives and will publish the results from this work in late-2018.

 

The progress report on plans by FSB member jurisdictions to address legal barriers to reporting and accessing trade data sets out the steps jurisdictions have taken to meet the agreed deadlines (end-June 2018 for the key commitments) for removing these barriers, following the publication of jurisdictions’ plans in August 2016. The progress report describes a number of significant actions taken by authorities of the EU, France, Singapore, and the U.S. in the last year to address barriers. However, major gaps and issues remain to be addressed across the FSB membership. It is essential that FSB member jurisdictions address the remaining issues by the committed deadlines in 2018. The FSB will continue to monitor progress and will publish, ahead of the G20 Leaders’ Summit in Argentina in 2018, a report on the extent to which member jurisdictions have met their commitments to remove barriers.

 

Related Links

Review Of OTC Derivatives Market Reforms

Twelfth Progress Report on Implementation

Progress Report on FSB Member Plans

Keywords: International, FSB, OTC Derivatives, Regulatory Reforms, Trade Repository, Central Clearing, Securities

Related Insights

EBA Updates Data Used for the Identification of G-SIIs

August 11, 2017 WebPage Regulatory News

Basel III Monitoring Updates for August 2017

August 10, 2017 WebPage Regulatory News

ESMA Published Opinions on Position Limits Under MiFID II

August 10, 2017 WebPage Regulatory News

FED Updates Reporting Form FR Y-14Q in August 2017

August 08, 2017 WebPage Regulatory News

MAS Consults on Revisions to the Deposit Insurance Scheme

August 04, 2017 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for August 2017

August 04, 2017 WebPage Regulatory News

EBA Consults on Its Approach to Financial Technology

August 04, 2017 WebPage Regulatory News

OCC Seeks Comments on Revising the Volcker Rule

August 02, 2017 WebPage Regulatory News

PRA Update on BEEDS Portal UAT for Capital+ Reporting

July 31, 2017 WebPage Regulatory News

IAIS Consults on Revisions to ICP 24

July 31, 2017 WebPage Regulatory News

EBA Single Rulebook: Final Q&A Updates in July 2017

July 28, 2017 WebPage Regulatory News

ESRB Publishes Its Annual Report for 2016

July 28, 2017 WebPage Regulatory News

EIOPA Consults on Information Requests on IORPs

July 26, 2017 WebPage Regulatory News

Bundesbank Updates Structured Q&A on AnaCredit

July 25, 2017 WebPage Regulatory News

EIOPA Q&A on Regulations for July 2017

July 24, 2017 WebPage Regulatory News

BOM Updates Guidelines and Guidance Notes in July 2017

July 21, 2017 WebPage Regulatory News

OSFI Revises Implementation Timeline for the FRTB Rules

July 20, 2017 WebPage Regulatory News

FSB Report on the Peer Review of France

July 20, 2017 WebPage Regulatory News

IMF Report on the Use of Supervisory Standards in FSAP

July 20, 2017 WebPage Regulatory News

APRA Announces Stronger Capital Benchmarks for Banks

July 19, 2017 WebPage Regulatory News

IAIS Newsletter for July 2017

July 18, 2017 WebPage Regulatory News

ESMA Updates Q&A on UCITS and AIFMD

July 11, 2017 WebPage Regulatory News

ESRB Report on Resolving Non-Performing Loans in Europe

July 11, 2017 WebPage Regulatory News

SRB Publishes the 2016 Annual Report

July 11, 2017 WebPage Regulatory News

ESMA Updated Q&A on MiFID II/MiFIR Investor Protection

July 10, 2017 WebPage Regulatory News

EC Consults on Development of Secondary Market for NPLs

July 10, 2017 WebPage Regulatory News

ESMA Updates Q&A on Implementation of MiFID II

July 07, 2017 WebPage Regulatory News

ESMA Consults on Simplifications for Prospectuses

July 06, 2017 WebPage Regulatory News

ESMA Updated Q&A on Market Abuse Regulation

July 06, 2017 WebPage Regulatory News

FSB Progress Report on Financial Regulatory Reforms

July 03, 2017 WebPage Regulatory News

FED Reporting Updates for July 2017

July 03, 2017 WebPage Regulatory News

EBA Single Rulebook: Final Q&A Updates in June 2017

June 30, 2017 WebPage Regulatory News

FED Reporting Updates for June 2017

June 28, 2017 WebPage Regulatory News

DNB Issued Banking Newsletter for June 2017

June 28, 2017 WebPage Regulatory News

EBA Publishes Annual Consumer Trends Report for 2017

June 28, 2017 WebPage Regulatory News

DNB Issues Insurance Newsletter for June 2017

June 28, 2017 WebPage Regulatory News

FPC Publishes Financial Stability Report in June 2017

June 27, 2017 WebPage Regulatory News

ECB Recommends Amendment to Article 22 of its Statute

June 23, 2017 WebPage Regulatory News

HKMA Circular on AML/CFT Amendment Bill 2017

June 23, 2017 WebPage Regulatory News

JFSA Consults on BCBS Pillar 3 Disclosure Requirements

June 23, 2017 WebPage Regulatory News

PRA Updates SS35/15 on Guidelines for Completing MLAR

June 23, 2017 WebPage Regulatory News

HKMA Consultation on Implementation of IRRBB Standards

June 22, 2017 WebPage Regulatory News

IAIS Newsletter for June 2017

June 22, 2017 WebPage Regulatory News

FCA Update on Regulatory Sandbox Under Project Innovate

June 22, 2017 WebPage Regulatory News

EBA Launched 2016 CVA Risk Monitoring Exercise

June 21, 2017 WebPage Regulatory News

PRA Published Consultation Paper on Recovery Planning

June 21, 2017 WebPage Regulatory News

EBA Responds to the EC Consultation on Fintech

June 15, 2017 WebPage Regulatory News

ESAs Published Annual Reports for 2016

June 15, 2017 WebPage Regulatory News

EIOPA Q&A on Regulations for June 2017

June 15, 2017 WebPage Regulatory News

RBI Accredits Another Credit Rating Agency INFOMERICS

June 13, 2017 WebPage Regulatory News

PRA Published CP6/17 on Regulatory Reporting

June 12, 2017 WebPage Regulatory News

Bundesbank Updates on AnaCredit Project for June 2017

June 12, 2017 WebPage Regulatory News

EC Approved Resolution of Banco Popular

June 07, 2017 WebPage Regulatory News

ESMA Chair Says Preparation for MiFID II is on Track

June 07, 2017 WebPage Regulatory News

Response of ESMA to EC Consultation on Fintech

June 07, 2017 WebPage Regulatory News

EC Report on Information Barriers in SME Funding Market

June 06, 2017 WebPage Regulatory News