Regulators report on derivative reform equivalence: The OTC Derivatives Regulators Group (ODRG) has published its report to the G-20 on cross-border implementation issues. The G-20 leaders requested this report after reaffirming that, in the context of overlapping cross-border regulatory regimes and the risk of regulatory arbitrage, jurisdictions should be able to defer derivatives regulation to each other where their respective regimes ensure similar outcomes. The report updates on the status of the understanding on equivalence and substituted compliance, and on how this approach is being tested for addressing the issue of branches and organised trading platforms. It also comments on the need for convergence in clearing determinations and in the application of margin requirements on non-centrally-cleared derivatives. To monitor the implementation of the latter, the Basel Committee and IOSCO will set up a joint group in 2014. Regulators have also agreed to explore direct access to trade repositories' (TR) data and to pursue further standardisation of non-margin risk mitigation techniques. Other cross-border issues, which ODRG says should be dealt with in bilateral fora, are supervisory access to foreign entities' information and barriers to trade reporting posed by data protection and bank secrecy laws. ODRG does not agree that the existence of these barriers justifies exemptions from the reporting obligation, except on an interim basis. (Source: ODRG Report)