Trade Repositories & Regulation

With the move towards establishing central clearinghouses and data repositories, politicians and regulators around the world are debating whether to establish a national central clearinghouse and national data repository for over-the-counter derivatives in their jurisdictions. Given the globalization of this market, the proliferation of data repositories would actually impede the ability of the international regulatory community to assess global systemic risk. While the impulse is for each jurisdiction to implement its own data repository, this approach would prove to be counterproductive in the long run.