The Financial Stability Board ("FSB") provided an update on FSB member progress on (i) G20 reforms for the over-the-counter ("OTC") derivatives markets and (ii) legal barriers to reporting and accessing trade data sets that were identified in a 2015 peer review.
With respect to the G20's OTC reform agenda, the FSB found that:
- 21 out of 24 FSB member jurisdictions have trade reporting requirements fully implemented (up by two since June 2017);
- 18 member jurisdictions have standards for requiring clearing of standardized OTC derivatives;
- 16 jurisdictions have adopted margin requirements for non-centrally cleared derivatives;
- 23 jurisdiction impose higher capital requirements for non-centrally cleared derivatives (however, the report notes that less progress has been made in implementing the "standardised approach for counterparty credit risk" and capital requirements for CCP exposures);
- 13 jurisdictions have standards for requiring exchange-trading of swaps; and
- jurisdictions have reported progress in creating "legal powers to exercise deference with regard to foreign jurisdictions' regimes."
As to addressing legal barriers to trade reporting, the FSB reported that:
- all but three FSB member jurisdictions have removed barriers to full trade reporting;
- five FSB member jurisdictions allow "masking of counterparty identifiers for some transactions"; and
- changes have been made or are in progress to remove barriers to access to trade repository data by foreign authorities in 12 jurisdictions.
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