International regulators are likely to miss their 2012 deadline to push most derivatives trading onto central counterparties, the Bank of England believes, and need to engage more with industry participants. The G20 group of nations and the Financial Stability Board (FSB) want financial derivatives, such as interest rate swaps, to be cleared centrally rather than traded “over the counter” (OTC) to boost transparency and reduce systemic in the market. However, progress has been slow because many products are individually tailored to each customer, and some markets may be too illiquid for a central process to help. “The industry may need more specific guidance from the authorities as to which OTC derivatives should be centrally cleared,” said the Bank’s financial stability paper. “There is also an urgent need to develop precise and timely metrics to monitor central clearing progress.” The FSB has already admitted it risks failing to implement central clearing by the end of the year.