Early and comprehensive consultation among regulators is key to any cross-border changes in OTC derivatives rules, according to a report by regulators in the U.S., European Union, Japan and five other countries, along with provincial authorities in Ontario and Quebec.
The report, released Aug. 30, also called for a “stricter-rule” approach to address gaps in mandatory over-the-counter trading or clearing obligations, according to a news release on the U.S. Commodity Futures Trading Commission website, meaning if there's a difference in rules between countries, people should follow the narrower definition. Also recommended was a framework for consultation on mandatory clearing determinations and the removal of jurisdictional barriers to reporting by market participants and to access to data by regulatory authorities.
It also called for a reasonable but limited transition period for regulatory agencies implement OTC derivatives reforms.
The report was requested by finance ministers and central bank governors of the Group of 20 nations who are looking to resolve cross-border regulatory conflicts by the St. Petersburg G-20 Summit in Russia on Thursday and Friday.