On July 24 the Financial Stability Board, the international body that coordinates financial sector reforms under the authority of the Group of 20 nations, published its ninth progress report on the global implementation of derivatives market reforms.
“Implementation of OTC derivatives market reforms is well underway, with the foundational authority needed to give effect to the full range of these reforms in place in most FSB member jurisdictions,” the report said.
Progress is most advanced in the areas of trade reporting and capital requirements for uncleared swaps. The implementation of central clearing is also advancing. The report said five jurisdictions—China, India, Japan, Korea and the U.S.—now mandate central clearing for one or more types of swaps, and several others, including Australia, the European Union and Mexico, will begin mandating clearing by mid-2016.
Implementation of the trading mandate is less advanced, however. Only four jurisdictions have regulatory frameworks in place to promote execution of standardized contracts on organized trading platforms, the report said, and several jurisdictions have taken the view that “current conditions do not support further steps.”