The International Organisation of Securities Commissions (IOSCO) published a report on 18 February 2011 on the trading of over-the-counter (“OTC”) derivatives.
This report examined:
- the characteristics of both exchanges and electronic platforms;
- the characteristics of OTC derivatives products relevant to organised platform trading, including standardisation and liquidity considerations;
- the benefits and costs of increasing organised platform trading: these were discussed in relation to the G20 leaders’ stated objectives of improving transparency, mitigating systemic risk and protecting against market abuse in the OTC derivatives markets, and also the various benefits derived from increased standardisation of contracts, central clearing and reporting to trade repositories; and
- regulatory actions that could be used to increase the movement of OTC derivatives trading to organised platforms.