Home Jurisdiction OTC derivatives market reforms: implementation progress in 2021

OTC derivatives market reforms: implementation progress in 2021



This report tracks international progress in finalizing standards and national and regional progress in implementing G20 reforms in global over-the-counter (OTC) derivatives markets following the 2008 global financial crisis. .

The overall implementation of the G20 reforms on OTC derivatives was already well advanced by 2020, but further progress has been made in the FSB member jurisdictions since the previous annual report in October 2020.

  • Capital requirements for non-centrally cleared derivatives (CCNS): 15 of the 24 FSB member jurisdictions have higher capital requirements for NCCDs (significantly up from 8 in 2020). More jurisdictions are expected to implement these requirements in 2022.

  • Margin requirements for NCCDs: The number of jurisdictions where margin requirements are in effect remains unchanged at 16. Two jurisdictions have published draft standards. Some jurisdictions that have not yet implemented the requirements plan to do so before the final implementation phase takes effect on September 1, 2022.

  • Commercial reports: The number of FSB jurisdictions where transaction reporting requirements are in effect remains unchanged at 23. In the remaining jurisdiction, preparations for the authorization of a trade repository and the implementation of jurisdiction requirements are underway. . Some jurisdictions report having further strengthened the functioning of trade repositories and reporting requirements.

  • Central compensation: 17 FSB member jurisdictions have central clearing requirements in effect, unchanged since the 2020 report. Some jurisdictions are taking steps towards the implementation of mandatory central clearing, including authorization of a central counterparty ( CCP) in the jurisdiction.

  • Trading platform: The number of jurisdictions with valid platform trading requirements remains unchanged at 13.

Number of CSF jurisdictions in the final phase of implementation

Number of jurisdictions where a legislative framework is in place and standards / requirements are in effect for more than 90% of transactions

The report also notes that most jurisdictions have withdrawn or have not extended measures previously introduced to ease the operational burden on OTC derivatives market participants in response to COVID-19. Changes in market and counterparty credit risk frameworks and margin practices to limit and mitigate excessive procyclicality have been incorporated into jurisdictional oversight frameworks.