On 4 November 2015, the Financial Stability Board (FSB) released two reports on the implementation of reforms to the over-the-counter (OTC) derivatives market agreed by the G20.

The Thematic Peer Review of OTC Derivatives Trade Reporting assessed progress of FSB member jurisdictions in implementing trade reporting requirements. Whilst comprehensive trade reporting is in place in the majority of FSB member jurisdictions, the report noted that further work is required to ensure data collected by  trade repositories can be effectively used by regulators.

The report noted the widespread legal and regulatory barriers to reporting complete transaction information. While mechanisms exist to overcome certain barriers  (for example, through obtaining counterparty consent) 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 at the latest. FSB members also agreed that all jurisdictions should have legal frameworks in place to facilitate data access for both domestic and foreign authorities by no later than June 2018. The report further noted several workstreams under the auspices of the Committee on Payments and Market Infrastructures (CPMI), FSB and International Organisation of Securities Commissions (IOSCO) are underway which, once completed and adopted, are expected to improve the quality and usability of trade repository held data.

The OTC Derivatives Market Reforms: Tenth Progress Report on Implementation provided an update on the key developments in OTC derivatives reforms since the previous report published in July 2015. Since July 2015, some additional steps have been taken in a small number of jurisdictions to implement frameworks for promoting central clearing of standardised transactions and for exchange or platform trading of standardised transactions, where appropriate.

The main highlights include:

  • 19 of the 24 FSB jurisdictions have trade reporting requirements in force covering over 90% of transactions in their markets. However there remains persistent challenges to the effectiveness of trade reporting, such as authorities’ ability to access, use  and aggregate trade repository data, that are being addressed through international workstreams;
  • 12 out of the 24 FSB jurisdictions have central clearing frameworks in force that apply to over 90% of transactions in their markets, whilst in eight jurisdictions platform trading frameworks are in force that apply to over 90% of transactions;
  • Most jurisdictions are in the early phases of implementing the Basel Committee on Banking Supervision/International Organisation of Securities Commissions (BCBS-IOSCO) framework for margin requirements for non-centrally cleared derivatives.

The FSB will continue to monitor and report on the OTC  derivatives  reform  implementation progress.


On 17 September 2015, the International Swaps and Derivatives Association, Inc (ISDA) announced that it was launching a new industry data project, aimed at developing an open-source standard derivatives product identification system that can be applied consistently and comprehensively across all derivatives facilities, including trading venues, clearing houses, repositories and other infrastructures.

The initiative comes in response to a variety of   regulatory changes, including the European Union’s revised Markets in Financial Instruments Directive/ Regulation (MIFID II/MIFIR) and the US Securities and Exchange Commission’s reporting rules, which require a standardised means of identifying derivatives instruments at a granular level. A common methodology for   classifying and identifying derivatives instruments across all platforms will cut complexity and costs for market participants that need to connect to multiple trading venues, and simplify the distribution of liquidity.

ISDA is overseeing the ‘Symbology Project’ which   involves a consortium of 18 major buy and sell side  market participants, vendors, platforms and trade association. The consortium will initially work to produce globally standardised symbols for credit, rates and equity derivatives. ISDA has created a Symbology Governance Committee which will provide oversight and governance for the clear classification and identification standard that meets both industry and regulatory requirements.