This report provides an update on the progress made across the G20’s over-the-counter (OTC) derivatives reform agenda. This includes trade reporting of OTC derivatives; central clearing and, where appropriate, exchange or electronic platform trading of standardised OTC derivatives; and higher capital and minimum margin requirements for non-centrally cleared derivatives.

Overall, good progress continued to be made across the G20’s reform agenda including work to assess whether the implemented reforms meet the intended objectives. The report concludes that:

  • Trade reporting: Twenty-one out of 24 FSB member jurisdictions have comprehensive trade reporting requirements in force, up by two since end-June 2017. Authorities are using trade repository data for a wide range of tasks, and incorporating it in their published work. Work continues internationally, including on data harmonisation.

  • Central clearing: Eighteen member jurisdictions now have in force comprehensive standards/criteria for determining when standardised OTC derivatives should be centrally cleared, and two more jurisdictions adopted mandatory clearing requirements during the reporting period.

  • Margin requirements for non-centrally cleared derivative (NCCDs): Sixteen jurisdictions have implemented comprehensive margin requirements for NCCDs, an increase of two. Estimated collateralisation rates have risen since end-2016.

  • Higher capital requirements for NCCDs: Interim higher capital requirements for non-centrally cleared derivatives are in force in 23 of the 24 member jurisdictions, unchanged over the reporting period. However, the number of jurisdictions that have implemented the final standardised approach for counterparty credit risk and capital requirements for bank exposures to central counterparties is much lower. Having regard to the 1 January 2017 recommended implementation date, jurisdictions are urged to implement those requirements without further delay.

  • Platform trading: Thirteen jurisdictions have in force comprehensive assessment standards or criteria for determining when products should be platform traded. New determinations entered into force for specific derivatives products to be executed on organised trading platforms in six jurisdictions. Transparency of information about OTC derivatives transactions has increased since end-2016.

  • Cross border coordination and issues: Jurisdictions reported continuing progress, both in establishing broad legal powers to exercise deference with regard to foreign jurisdictions’ regimes, but more particularly with regard to exercising those powers in particular cases. Notably, the EU and US (Commodity Futures Trading Commission (CFTC)) recognised each other’s regulatory regime for trading venues, while Australia, Japan and the US (CFTC) recognised one or more jurisdictions for the purposes of their margin requirements.