Call for responses to surveys on incentives to centrally clear OTC derivatives

Updated 25 January 2018: Frequently asked questions are available for those completing the surveys. For information or if you have any questions, please contact [email protected].

The deadline for all survey responses, which must be completed in English, has been extended to 17.00 (CET) on Friday 2 February 2018.

The Financial Stability Board (FSB), the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have agreed to undertake an evaluation of the effects of the interaction of the post-crisis regulatory reforms on incentives to centrally clear over-the-counter (OTC) derivatives. Over 2017-18, a joint BCBS-CPMI-FSB-IOSCO Derivatives Assessment Team (DAT) is undertaking a review of the incentives for central clearing arising from the interaction of a number of reforms (see attached background note for more information on the study). A previous study was published in 2014.

The DAT study is being carried out under the FSB’s framework for post-implementation evaluation of effects of the G20 financial regulatory reforms (“evaluation framework”). The study began in July 2017 and the final report is expected to be completed in late 2018. 

In addition, the BCBS is carrying out a review of the impact of the Basel III leverage ratio on banks’ provision of clearing services and any consequent impact on the resilience of central clearing.

To support their work, the DAT and BCBS have prepared qualitative surveys to be completed by different participants in central clearing, i.e. central counterparties, clearing members (as both OTC derivatives dealers and providers of client clearing services), and indirect clearers/end-users. The surveys cover areas such as the effects of G20 reforms on derivatives markets, client clearing service provision, and other market structure issues and observations.

Survey responses should be provided on a group-wide basis. Respondents are encouraged to complete the survey (i.e. clearing member – as derivatives dealer and client clearing service provider (CCSP), CCP or end-user) that best fits their main role in derivatives markets. However, where a respondent considers itself to be active in more than one role and wishes to respond to more than one survey, then it may do so, but still providing responses on a group-wide basis in each case.

Responses to the surveys, together with other input analyses, will be used to evaluate the effects of reforms on incentives to centrally clear. Survey responses may also be used by CPMI and IOSCO Policy Standing Group regarding its potential future work on client.

If you would like to respond to the survey, the survey templates, together with instructions for completion and confidentiality arrangements, are available to download. Please read all documents carefully before completing the survey.

If you wish to respond to the surveys and are a firm subject to financial regulation or supervision by a central bank, prudential supervisor or market regulator (authority), you may need to contact your group’s lead authority to enquire whether that authority wishes either to intermediate or receive a copy of the survey response. Please see the confidentiality arrangements.

For information or if you have any questions, please contact [email protected].