Derivatives Industry Sceptical of Global Reporting Plan – 23rd Sept 2014
Plans for a global snapshot of risks in the financial derivatives market are a “dream” that must not detract regulators from tackling discrepancies in trade reporting, a top industry official said on Tuesday. Following market mayhem after the collapse of Lehman Brothers bank in 2008, the Group of 20 economies (G20) agreed that data should be collected on who holds derivatives contracts like interest rate or credit default swaps. The aim is to have a snapshot of who is exposed to any failing lender and where risks are building up in the market. But so far 25 trade repositories in 11 countries have been set up to collect data, making it impossible for regulators to obtain the timely, clear picture they are looking for. Last week, the G20’s regulatory task force, the Financial Stability Board (FSB), published proposals for a mechanism to collate and share data from repositories.
Source – Reuters