On 15 October 2019, the Financial Stability Board (FSB) published its annual progress report on the implementation of the G20 reforms to over-the-counter (OTC) derivatives markets.
The headlines in the report include:
- trade reporting: 23 out of 24 member jurisdictions have comprehensive requirements in force, an increase of one during the reporting period;
- central clearing: 18 jurisdictions have in force comprehensive standards/criteria for determining when standardised OTC derivatives should be centrally cleared;
- margin requirements: 16 jurisdictions have in force comprehensive margin requirements for non-centrally cleared derivatives, which represents an increase of one during the reporting period;
- higher capital requirements for non-centrally cleared derivatives: interim higher capital requirements for non-centrally cleared derivatives are in force in 23 of the 24 FSB member jurisdictions. Only 7 jurisdictions have implemented the final capital requirements;
- platform trading: comprehensive platform trading requirements are in force in 13 jurisdictions, a number which has remained unchanged during the reporting period; and
- cross-border coordination and issues: one jurisdiction started exercising deference during the reporting period with regard to foreign jurisdictions’ regimes. Several other jurisdictions extended deference to further jurisdictions.