FSB Releases Progress Report on OTC Derivatives Reforms

The Financial Stability Board (“FSB”) published the seventh of its semiannual progress reports on the implementation of OTC derivatives market reforms. The seventh report found that substantial progress has been made toward meeting the G20 commitments, through (i) international policy development, (ii) jurisdictions’ adoption of legislation and regulation and (iii) expansion in the use of market infrastructure.

Additionally, the report identified several areas in which further work was needed. In particular, Agencies were urged to:

  1. put in place their remaining legislation and regulation promptly, and in a form flexible enough to respond to issues of cross-border consistency;
  2. provide clarity on their processes for making equivalency or comparability decisions (including whether additional authority may be needed to defer, where appropriate, to other jurisdictions’ regimes); and
  3. continue to coordinate closely and cooperate as needed to seek to resolve cross-border regulatory issues as and when they are identified.

See: OTC Derivatives Reform Report.