OTC derivatives reforms creep ahead: FSB

Regulators are continuing to make progress on reforms to the global over-the-counter (OTC) derivatives markets that were developed in the wake of the 2008 global financial crisis, the Financial Stability Board (FSB) reports.

The global policy group published a report detailing the status of the OTC derivatives market reforms around the world that tracks progress in finalizing standards and adopting the G20’s post-crisis reforms.

Overall implementation of the G20’s OTC derivatives reforms is already “well advanced,” the report noted, but there has been further progress over the past 12 months.

For instance, there are now 15 jurisdictions that have raised capital requirements for non-centrally cleared derivatives, up from just eight last year.

“More jurisdictions are expected to implement these requirements in 2022,” it noted.

Almost all FSB jurisdictions now have trade reporting requirements in place, and 17 have adopted central clearing requirements (a number unchanged from last year).

The report also noted that most jurisdictions have allowed temporary measures that were adopted in response to the pandemic — such as relaxed deadlines for regulatory filings in Canada — to expire or have withdrawn them.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.