Time to end derivatives data disaster

By Hazel Sheffield
13 Nov 2014

European regulators have published a new consultation updating the rules governing trade reporting of derivatives. Market participants have welcomed further guidance on how to report data. But the consultation shies from the crux of the problem: without global oversight, the point of trade reporting — to identify systemic risk in derivatives markets before it becomes too large — eludes regulators. There must be a super-repository created to take control of the mess.

Trade reporting is a global initiative that was implemented regionally. When G20 leaders agreed, in 2009, that over-the-counter (OTC) or bespoke derivatives contracts should be reported to trade repositories, they imagined a new global system that would act as a clear window on the dark corners where derivatives ...

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