This, in turn, reduces uncertainty regarding asset values, which translates into greater market confidence; a lower probability of unwarranted price volatility; and a lower risk of contagion, liquidity spirals, and market freezes. Trade repositories are central to G-20 commitments to enhance the transparency of OTC derivatives markets.
Consequently, the G20 have moved shadow banking high up on their agenda. Third, regulation needs to be consistent across asset classes. Take the regulatory treatment of government bonds as an example.