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When representatives from the G-20 met in the aftermath of the 2008 financial crisis, they set an ambitious goal to bring greater stability and transparency to the previously opaque over-the-counter (OTC) derivatives market. While policymakers and industry participants have made a great deal of progress in recent years to deliver on this promise, in particular by mandating the reporting of transactions to trade repositories, many challenges remain to securing the level of transparency and risk mitigation necessary to protect the integrity of the financial system and re-establish public trust in financial institutions and markets.
Summary
A combination of ongoing legal and market issues, including the lack of a harmonised set of global rules and the extraterritorial application of new regulations, has the potential to undermine the G-20 vision of creating a global view of financial risks. As we approach the five-year anniversary of the start of financial crisis, policymakers and industry participants need to increase their collaboration in order to allow trade repositories to reach their full potential – as well as to create new opportunities to leverage them to enhance the transparency of a wider spectrum of financial markets and products in the future, including repos, cash instruments and collateral.
Download the Congressional Testimony: The future of trade repositories: opportunities, challenges and the pursuit of global market transparency
Related Content
When representatives from the G-20 met in the aftermath of the 2008 financial crisis, they set an ambitious goal to bring greater stability and transparency to the previously opaque over-the-counter (OTC) derivatives market. While policymakers and industry participants have made a great deal of progress in recent years to deliver on this promise, in particular by mandating the reporting of transactions to trade repositories, many challenges remain to securing the level of transparency and risk mitigation necessary to protect the integrity of the financial system and re-establish public trust in financial institutions and markets.