As the legislative process is usually long drawn and requires political support, the approach should not mandate legislative changes for all aspects of the reform agenda. 43. One of the biggest challenges for EMDEs remains meeting recognition/ equivalence requirements of major financial centres in OTC derivatives.
While the concerns relating to uneven implementation of reforms may be an issue, forcing home country jurisdictional requirements onto host country entities, particularly financial market infrastructure entities could become a sensitive subject. From an EMDE perspective, this also comes in the way of achieving other objectives, such as, mandating central clearing for certain standardised OTC products.