Global policymakers Tuesday published a final report on the over-the-counter derivatives data that should be collected and shared by trade repositories.
The Committee on Payment and Settlement Systems, a forum for central bankers, and the International Organization of Securities Commission’s key policymaking body, the technical committee, have published their final report on the OTC derivatives data and trade repositories.
In the report, the committees note that by collecting such data centrally trade repositories would provide authorities and the public with better and more timely information on OTC derivatives. This would make markets more transparent, help to prevent market abuse, and promote financial stability, they say.
The report indicates that some questions remain regarding how best to address current data gaps and define authorities’ access to trade repositories, and that two working groups will address these questions in the coming year. The Financial Stability Board will establish an ad hoc group of experts to further consider means of filling current data gaps, while the CPSS and IOSCO will establish a joint group to examine authorities’ access to trade repositories.
The requirements and data formats recommended in the report would apply both to market participants reporting to trade repositories and to the repositories reporting to the public and to regulators. It also examines issues relating to data access, and it covers the mechanisms and tools that the authorities will need for the purpose of aggregating OTC derivatives data.
The CPSS-IOSCO final report addresses a recommendation in a report from the FSB, which called on the CPSS and IOSCO to consult with the authorities and the OTC Derivatives Regulators Forum in developing: minimum data reporting requirements and standardised formats, and the methodology and mechanism for data aggregation on a global basis. The final report reflects public comments received in response to a consultative version of the report published in August 2011, and recent international developments in data reporting and aggregation requirements stemming from efforts to create a global Legal Entity Identifier.
Back in June of last year, the Canadian Securities Administrators published a consultation paper, the first in a series of eight papers addressing OTC derivatives regulation, proposing a regulatory framework that would require all OTC derivative transactions entered into by a Canadian counterparty to be reported to an approved trade repository, and that Canadian regulators would have access to that data. The comment period ended in September, and the CSA has yet to publish any rules in this area.