OTC Derivatives Regulation - Paper - Report on Cross-Border Implementation Issues

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August 2013

On August 30, 2013, per the request of the G20, a consortium of authorities responsible for OTC derivatives regulation in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland and the United States issued a report regarding common understandings to improve the cross-border implementation of OTC derivatives reforms. The report reflects a number of substantive understandings to improve the cross-border implementation of OTC derivatives reforms.

Among the understandings:

  • Early and comprehensive consultation among relevant authorities when equivalence or substituted compliance assessments are being undertaken is essential.
  • A flexible, outcomes-based approach should form the basis of final assessments regarding equivalence or substituted compliance assessments.
  • A “stricter-rule” approach would apply to address gaps in mandatory trading or clearing obligations.
  • Authorities have a framework for consultation on mandatory clearing determinations.
  • Jurisdictions should remove barriers (1) to reporting to trade repositories by market participants and (2) to access to trade repository data by authorities.
  • There should be appropriate transitional measures and a reasonable but limited transition period for foreign entities to implement OTC derivatives reforms.<ref>OTC Derivatives Regulators Issue Report to the G20. CFTC. Retrieved on August 30, 2013.</ref>

2014 Update[edit]

The 2014 update concentrates on two areas:

  • potential gaps and duplications in the treatment of branches and affiliates; and
  • treatment of organized trading platforms and implementation of the G20 trading commitment.

The report also addressed four areas in which it was working to implement understandings reached previously:

  • equivalence and substituted compliance;
  • clearing determinations;
  • risk mitigation techniques for non-centrally cleared derivatives transactions (margin); and
  • data in trade repositories and barriers to reporting to trade repositories.

2015 Update[edit]

The 2015 update highlights the progress made since November 2014, including:

Related Documents: 2013, 2014, 2015 Reports[edit]



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