Incentives to Centrally Clear Over-the-Counter (OTC) Derivatives

Item Type Monograph (Work Report)
Abstract This final report from the FSB, the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) examines the effects of G20 financial regulatory reforms on the incentives to centrally clear over-the-counter (OTC) derivatives. The central clearing of standardised OTC derivatives is a pillar of the G20 Leaders’ commitments to reform OTC derivatives markets in response to the financial crisis. A number of post-crisis reforms are, directly or indirectly, relevant to incentives to centrally clear. A large majority of the relevant international standards have been agreed upon and are being implemented. This evaluation is one of the first using the FSB framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms. The report concludes that the reforms – particularly capital requirements, clearing mandates and margin requirements for non-centrally cleared derivatives – are achieving their goals of promoting central clearing, especially for the most systemic market participants. This is consistent with the goal of reducing complexity and improving transparency and standardisation in the OTC derivatives markets. Beyond the systemic core of the derivatives network of CCPs, dealers/clearing service providers and larger, more active clients, the incentives are less strong.
Authors FSB, Evaluation Team & Kartasheva, Anastasia
Language English
Subjects finance
HSG Classification contribution to practical use / society
Date 19 November 2018
Publisher Financial Stability Board
Official URL
Depositing User Prof. Dr. Anastasia Kartasheva
Date Deposited 12 Jul 2020 12:07
Last Modified 20 Jul 2022 17:42


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FSB, Evaluation Team & Kartasheva, Anastasia: Incentives to Centrally Clear Over-the-Counter (OTC) Derivatives. Financial Stability Board, 2018.

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