Regulators unite to call for more reporting on derivatives trading

GLOBAL regulators will require banks to report certain data on derivatives trades from the end of next year, in an effort to monitor stability and get a clearer picture of the off-exchange market.

From the end of 2012, banks will have to post minimum information on derivatives trades to a repository, according to a consultation from the Bank of International Settlements yesterday.

Trades are currently reported on a voluntary basis, but regulators are keen to standardise the process to keep track of the estimated $600 trillion market.

“Public dissemination of data... promotes the understanding of OTC derivatives markets by all stakeholders, underpins investor protection, and facilitates the exercise of market discipline,” the report said.