The need for a more resilient infrastructure for over-the-counter derivatives Another issue which warrants your attention is the need to improve the infrastructure for over-the-counter (OTC) derivatives. Despite the rapid growth of OTC derivatives in recent years, the infrastructure for clearing and settling OTC trades is still predominantly bilateral and non-standardised, and continues to require a considerable degree of manual intervention.
Against this background, it is not surprising that OTC markets have struggled to  BIS Review 141/2008  5  cope with the increasing volumes and complexity of derivatives trades, particularly during the financial turmoil. Therefore, we fully agree with the Financial Stability Forum and the European Commission that measures must be taken to improve the market infrastructures for OTC derivatives.