FSB and Others Consult on Incentive to Centrally Clear OTC Derivatives
FSB, BCBS, CPMI, and IOSCO published a consultative document that examines the effects of G20 financial regulatory reforms on the incentives to centrally clear over-the-counter (OTC) derivatives. The document evaluates how these reforms interact and how they could affect incentives. The consultation closes on September 07, 2018.
The analysis suggests that, overall, the reforms are achieving their goals of promoting central clearing, especially for the most systemic market participants. This is consistent with the goal of reducing complexity and improving transparency and standardization in the OTC derivatives markets. Beyond the systemic core of the derivatives network of CCPs, dealers/clearing service providers and larger, more active clients, the incentives are less strong. Also, analysis of quantitative and qualitative survey data and market outreach suggest that the treatment of initial margin in the leverage ratio can be a disincentive for banks to offer or expand client clearing services. Considering the original objectives of the reform, additional analysis would be useful to further assess these effects.
This is the second evaluation under the FSB framework for the post-implementation evaluation of the effects of G20 financial regulatory reforms. The report identifies reform areas that may merit consideration by the relevant standard-setting bodies. The findings from the report will inform relevant standard-setting bodies about any subsequent policy efforts and potential adjustments, keeping in mind the original objectives of the reforms. The final responsibility for deciding whether and how to amend a particular standard or policy remains with the body that is responsible for issuing that standard or policy.
Related Links
Comment Due Date: September 07, 2018
Keywords: International, Banking, Securities, OTC Derivatives, Central Clearing, Regulatory Reforms, FSB/BCBS/CPMI/IOSCO
Previous Article
IMF Publishes Reports on 2018 Article IV Consultation with IndiaRelated Articles
|
News
PRA Finalizes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
June 17, 2019
WebPage
Regulatory News
|
|
News
IAIS Consults on Revisions to IAIS Supervisory MaterialIAIS has launched a public consultation on revisions to the IAIS supervisory material.
June 14, 2019
WebPage
Regulatory News
|
|
News
IMF Paper on Implementing Prudential Standards in Developing EconomiesIMF published a working paper that provides practical guidance on how developing economies, including non-Basel Committee member countries, could incorporate international standards into their prudential framework.
June 14, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for June 2019EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.
June 14, 2019
WebPage
Regulatory News
|
|
News
FSB Releases Update on Meeting of Regional Consultative Group for AsiaFSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia.
June 14, 2019
WebPage
Regulatory News
|
|
News
BoE, FCA, and MAS Announce Collaboration on Cyber SecurityMAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.
June 13, 2019
WebPage
Regulatory News
|
|
News
CBIRC Advisory Committee Holds Meeting, Discusses Regulatory IssuesThe first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.
June 13, 2019
WebPage
Regulatory News
|
|
News
ECB and EIOPA Publish Common Minimum Standards for Data Revision in EUECB and EIOPA published the common minimum standards for supervisory and statistical reporting data by the undertakings in EU.
June 13, 2019
WebPage
Regulatory News
|
|
News
IMF Reports on 2019 Article IV Consultation with Czech RepublicIMF published its staff report and selected issues report under the 2019 Article IV consultation with Czech Republic.
June 13, 2019
WebPage
Regulatory News
|
|
News
APRA Response to Proposal on Revisions to Capital Framework for BanksAPRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.
June 12, 2019
WebPage
Regulatory News
|
