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The Committee on Payment and Settlement Systems, along with the International Organisation of Securities Commissions – the body of international regulators that helps set standards for the G20 post-crisis reform agenda - last week published its latest report on requirements on OTC derivatives data-reporting and the creation of trade repositories.
Policymakers believe trade repositories will help prevent the build-up of systemic risk by providing a central location for storing and monitoring data on OTC derivatives trading. But many in the industry have raised concerns that the proliferation of multiple repositories could increase systemic risk by fragmenting data across several jurisdictions, leading to double-reporting and visibility gaps.
Trading firms and repository providers – in particular US post-trade group, The Depository Trust & Clearing Corporation, which operates two repositories and is building three others – have warned that the industry must devise a framework for sharing data on a secure basis.
The latest report concedes, however, that questions remain regarding how data ought to be shared and how regulatory access to repositories will be defined.
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