The Financial Stability Board (FSB) has published two reports on implementation of the reforms to over-the-counter (OTC) derivatives markets.

The Thematic Peer Review of OTC Derivatives Trade Reporting recommends that further work be undertaken to ensure that the data collected by trade repositories (TRs) can be effectively used by regulators.

The report finds, amongst other things, that:

  • there are widespread legal and regulatory barriers to reporting complete transaction information. FSB members have agreed to address remaining legal and regulatory barriers to reporting complete information by June 2018 at the latest. Masking of counterparty-identifying data will be discontinued by end-2018.
  • Barriers that impede authorities’ access to TR data are also widespread. FSB members have agreed that by June 2018 all jurisdictions should have legal frameworks in place to facilitate data access for domestic and foreign authorities.

FSB members will be asked to report on their planned actions by June 2016.

The Tenth Progress Report on Implementation of OTC Derivatives Market Reforms details, amongst other things, the following:

  • 19 out of the 24 FSB jurisdictions have trade reporting requirements in force covering over 90% of transactions in their markets. Authorities’ ability to access, use and aggregate TR data remains challenging.
  • 12 out of 24 FSB jurisdictions have central clearing frameworks in force that apply to over 90% of transactions in their markets. Eight jurisdictions' platform trading frameworks are in force that apply to over 90% of transactions. The report recommends that all jurisdictions have frameworks in place for assessing when it is appropriate for transactions to be centrally cleared, or executed on organised trading platforms.
  • Most jurisdictions are in the early phases of implementing the BCBS-IOSCO framework for margin requirements for non-centrally cleared derivatives. The report suggests that authorities should continue to advance implementation of these requirements to ensure the agreed phase-in period commences in September 2016.

The FSB welcomes feedback from the public on this tenth progress report. Feedback should be submitted by 4 December 2015.