FSB updates on OTC derivatives progress: FSB has published its ninth progress report on implementation of OTC derivatives market reforms. It found good progress overall, and noted:

  • reform is most advanced for trade reporting and for higher capital requirements for non-centrally cleared derivatives;
  • five jurisdictions now have central clearing requirements in effect for one or more specific product types, with progress anticipated in several more jurisdictions over the next year;
  • not many jurisdictions have regulatory frameworks in place to promote execution of standardised contracts on organised trading platforms; 
  • most jurisdictions are only in the early phases of implementing the Basel Committee–IOSCO framework for margin requirements for non-centrally cleared derivatives (internationally agreed phase-in periods are now not due to begin until September 2016); and 
  • availability and use of centralised infrastructure to support OTC derivatives reforms continues to expand.

FSB also reported on steps to harmonise transaction reporting and to agree to a framework for uniform trade and product identifiers; further coordinated consideration of CCP resilience, recovery and resolution, and central clearing interdependencies; and ongoing multilateral and bilateral discussions to address cross-border regulatory issues. FSB welcomes comments on the report by 24 August. (Source:FSB Updates on OTC Derivatives Progress)