Background
In September 2009 global leaders committed to reform
over-the-counter (OTC) derivatives markets with the key objectives
of reducing systemic risk, improving transparency, supporting
financial stability and combatting market abuse. These high level
commitments have now been translated into concrete rules and
actions, with global jurisdictions at differing stages of
implementation.
However the implementation of these rules at a global level has
thrown up challenges as the constraints of domestic law,
differences in market structure and timing hamper the ability for
rules to work globally across the spectrum of market participants.
The need for a consistent and co-ordinated approach from regulators
is essential. Without it there is a real risk that market
participants will be subject to conflicting, duplicative or
over-lapping requirements.
