Derivatives markets and central counterparties
The G20 Leaders agreed in 2009 on a comprehensive reform agenda for over-the-counter (OTC) derivatives markets, with the objectives of improving transparency, mitigating systemic risk, and protecting against market abuse.
To achieve these objectives, the G20 agreed that:
all OTC derivatives contracts should be reported to trade repositories (TRs);
all standardised contracts should be cleared through central counterparties (CCPs);
all standardised contracts should be traded on exchanges or electronic trading platforms, where appropriate; and
non-centrally cleared (bilateral) contracts should be subject to higher capital requirements and minimum margining requirements.
To support the implementation of these reforms, the FSB and other international standard-setting bodies have developed standards and guidance on financial market infrastructures (FMIs) and market participants. The FSB has undertaken and continues to undertake work on the resolution of FMIs, in particular CCPs. This complements the work undertaken by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) on the resilience and recovery of CCPs and other FMIs.