Compliance
Course correction: Derivatives trade reporting
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For the past decade, individual jurisdictions have fallen short of achieving the standardisation in trade reporting that would enable regulators to reach the level of transparency and global risk monitoring in the over-the-counter (OTC) derivatives markets as originally envisioned by the Group of 20 (G20) at its historic 2009 summit in Pittsburgh.

Insufficient coordination of reporting requirements among regulators has impeded the global aggregation and analysis of OTC derivatives transaction data reported to trade repositories across multiple jurisdictions. This has created a serious challenge of regulators lacking market transparency across jurisdictions, which inhibits their ability to fully monitor systemic risk.

Regulatory bodies are now embarking on the adoption of critical data elements (CDEs) for derivatives trade reporting as identified by the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) working group on harmonisation (Harmonisation Group). This initiative was designed to promote the data harmonisation critical to enabling data aggregation and transparency across jurisdictions.