FSB has reported on the progress of OTC derivatives markets reform measures. It is pleased with progress and comments specifically on:

  • the fact that by the start of 2014 three quarters of FSB member jurisdictions plan to have legislated to require reporting of transactions to trade repositories (TRs). Most large derivatives markets are already moving towards central clearing;
  • the fact that international minimum standards are in place for sound risk management of Financial Market Infrastructures (FMIs), including central counterparties (CCPs);
  • the work of a group of major market regulators who have reached understandings to improve the cross-border implementation of OTC derivatives reforms; and
  • the good progress market participants are making in their preparations for implementation of OTC derivatives market reforms.

It also notes that centralised infrastructures for reporting and clearing of OTC interest rate and credit derivatives are advancing quickly.

Further work the report recommends includes:

  • increased use of central clearing, and a renewed focus on increasing the use of exchanges and electronic trading platforms;
  • establishment of resolution regimes for FMIs, including CCPs;
  • continued work on cross-border co-operation and mutual recognition of rules that achieve the same result, and more clarity on the treatment of cross-border transactions; and
  • ensuring that authorities can make full use of TR data.

FSB will report again in April 2014 and asks for feedback on this report by 2 October 2013. (Source: FSB Reports on Derivative Market Reforms)