FSB to report on Margin for Non-Cleared Trades in April 2013

The Financial Stability Board (FSB) has published a press release regarding the meeting which took place in Zurich on 28 January 2013 to discuss vulnerabilities affecting the global financial system and progress to strengthen global financial regulation.

On the subject of over-the-counter (OTC) derivatives reforms, the FSB confirmed that, in April, it will submit to the G20 a progress report on implementation together with a status report on the work necessary to complete the reforms, including:

• capital requirements for exposures to CCPs;
• margin requirements for non-centrally cleared transactions;
• guidance on resolution of CCPs;
• authorities access to trade repository data, and
• aggregation of data across trade repositories.

The FSB also noted the increasing use of collateral transformation as a means of mitigating collateral scarcity and stated that it will monitor growth and associated risks in this area.