IOSCO Publishes Consultation Report on “Risk Mitigation for Non-Centrally Cleared OTC Derivatives”

IOSCO published a consultation report, titled ”Risk Mitigation for Non-Centrally Cleared OTC Derivatives,” which proposes standards across nine different areas aimed at mitigating the risks in the noncentrally cleared OTC derivatives markets. 

The areas for the proposed standards include:

  • scope of coverage;
  • trading relationship documentation;
  • trade confirmation;
  • valuation with counterparties;
  • reconciliation;
  • portfolio compression;
  • dispute resolution;
  • implementation; and
  • cross-border transactions. 

The proposed standards were developed by IOSCO in consultations with the Basel Committee on Banking Supervision and the Committee on Payments and Market Infrastructures, and are intended to complement the margin requirements developed by those groups in September 2013.

Comments on the consultation report are due by October 17, 2014. 

See: IOSCO Consultation Report
Related news: Basel Committee and IOSCO Release Margin Requirements for Non-Centrally Cleared Derivatives Final Framework (September 3, 2013).