OTC Derivatives Regulators Issue Report to the G20

The OTC Derivatives Regulators Group (“ODRG”) released a report that identifies the current list of remaining cross-border implementation issues related to the global reform of OTC derivatives markets.  The report includes a summary of the status of such issues, as well as a timetable for addressing them through a series of reports to the G20 Finance Ministers and Central Bank Governors over the course of 2014.

The main focus of this initial report to the G20 was to address cross-border issues on which the ODRG is working in relation to developing approaches to the treatment of branches and affiliates, and the implementation of the trading commitment through organized trading platforms. The report further addresses the following:

  • how ODRG members are working to implement understandings reached in four key areas:
    • equivalence and substituted compliance,
    • clearing determinations,
    • margin requirements for non-centrally cleared derivatives transactions and
    • access to trade repository data;
  • how the ODRG is monitoring cross-border issues with respect to:
    • risk mitigation techniques for noncentrally cleared OTC derivatives transactions,
    • access to registrants’ books and records and
    • barriers to reporting to trade repositories; and
  • bilateral progress to address timing differences in the implementation of trading frameworks, and to develop mechanisms to enhance cooperation and information sharing.

The ODRG is made up of authorities with responsibility for the regulation of OTC derivatives markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland and the United States.

See:  ODRG Report.