FSB: Need For Speed On OTC Derivs Reform

The Financial Stability Board has warned that countries must step up pace to meet the Group of Twenty deadline for implementing laws to regulate the $600 trillion over-the-counter derivatives market.

The Financial Stability Board (FSB) has warned that countries must step up pace to meet the Group of Twenty deadline for implementing laws to regulate the $600 trillion over-the-counter (OTC) derivatives market, Financial Times reports. The Basel-based board, comprising regulators and central bankers, found most jurisdictions had fallen behind schedule in meeting commitments made in 2009 in the wake of the 2008 financial crisis. Only a few of its member countries have the legislation or regulations in place to meet these commitments. The bulk of derivatives are trading in the U.S. and the European Union, which have yet to finalize all the rules. This has left some countries in standby mode, it said.

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