G20 derivative reform lag

Steve Dinneen
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THE Financial Stability Board (FSB) – the body set up to help coordinate global financial policy – has warned some G20 countries will struggle to meet its deadline for derivatives market reforms.

The FSB is overseeing the agreed move towards greater transparency in the industry, including the encouragement of electronically traded exchanges and cross-country standardisation.

However, in a progress report FSB said it is “concerned that many jurisdictions may not meet the G20’s end-2012 deadline.”

It also said “differences in approaches” are emerging between countries that could “weaken the effectiveness of reforms in these markets, create potential opportunities for regulatory arbitrage, or subject market participants and infrastructures to conflicting regulatory requirements.”