The leaders of the G20 group of nations have released a statement at the G20 summit in Pittsburgh summarising the state of the global economy and the progress made towards recovery since their meeting last April.
The main elements of agreement reached at the summit regarding the strengthening of the international financial regulatory system included improving the OTC (over the counter) derivatives markets. By the end of 2010 OTC derivatives contracts should be traded on exchanges with central counterparty clearing. OTC contracts should be reported to trade depositaries and contracts not centrally cleared will be subject to higher capital requirements. The FSB has been asked to keep a continuous watch in order to decide whether this approach provides enough additional transparency to mitigate against systemic risk and protect against market abuse.
View Leaders' Statement: The Pittsburgh Summit, 25 September 2009