Progress on global derivatives reform is at a critical juncture. The lack of transparency, identified during the 2008 crisis as critical to the supervision of the financial system, remains only partly addressed.As a result, the cross-border identification of systemic risk remains beyond the reach of macroprudential authorities. Trade repositories, heralded as essential to achieving greater transparency in the global derivatives markets, have not been able to reach their full potential as tools for systemic risk oversight. It is imperative that a plan of action, together with a concrete timetable, is agreed upon to remove the remaining barriers, practical and legal, that would turn the aspiration of global derivatives market transparency, and the identification and management of global systemic risk, into a reality.
Click here to read a DTCC paper on G20’s Global Derivatives Transparency Mandate (PDF).