FSB has issued a peer review and a progress report on the implementation of reforms to the over-the-counter (OTC) derivatives market. The peer review assesses progress of FSB member jurisdictions in implementing trade reporting requirements. It reports good progress in implementing these requirements but further work is needed to ensure regulators can effectively use the data that trade repositories collect. The review finds that:

  • comprehensive reporting is in place in the majority of member jurisdictions. Those yet to fully implement reporting requirements should do so promptly;
  • there are widespread legal and regulatory barriers to reporting complete transaction information. There are often mechanisms to overcome these barriers (such as through obtaining counterparty consent), but in other cases barriers cannot be addressed in these ways. FSB members agreed to address remaining legal and regulatory barriers to reporting complete information by June 2018, which should enable discontinuance of masking of counterparty-identifying data by the end of 2018;
  • barriers impeding authorities’ access to trade repository data are also widespread. FSB members agreed that all jurisdictions should have legal frameworks in place to facilitate data access for both domestic and foreign authorities by June 2018; and
  • there remain a number of challenges in the quality and usability of trade repository data, and several international workstreams are underway that will help address these issues. Several authorities are starting to make good use of trade repository data.

Member jurisdictions should report by June 2016 on their plans to address remaining barriers to full reporting. In terms of implementation progress:

  • 19 of the 24 FSB jurisdictions have trade reporting requirements in force covering over 90% of transactions in their markets;
  • 12 FSB jurisdictions have central clearing frameworks in force applying to over 90% of transactions in their markets, while in eight jurisdictions platform trading frameworks are in force that apply to over 90% of transactions; and
  • most jurisdictions are in the early phases of implementing the Basel Committee and IOSCO framework for margin requirements for non-centrally cleared derivatives.

FSB invites feedback to this report until 4 December. (Source: FSB Reports on OTC Derivatives Implementation)