Particular concerns regarding bilateral clearing were identified with regard to OTC derivatives markets, as the opacity of the underlying exposures, together with uncertainty regarding counterparty creditworthiness and the inherent leverage and complexity of OTC derivatives, had been a major factor, if not in triggering the collapse of Lehman Brothers and the near-default of AIG, at least in amplifying market disruptions in their aftermath.
At the Pittsburgh summit in September 2009, G20 leaders committed themselves to increasing the resilience and transparency of OTC derivatives markets, including through mandatory central clearing of standardised OTC derivatives. As a result, the share of OTC derivatives cleared centrally has increased markedly, especially in the OTC interest rate and credit derivatives segments (see Chart 1).