In view of those regulatory trends, there has been an increase overseas in the "futurization of OTC derivatives," which refers to the clearing of transactions through CCPs by listing futures contracts on exchanges in advance, mirroring the contractual conditions of OTC derivatives deals made with a certain frequency.
It remains important that banks make adequate provisions and undertake prudent capital planning. They should be attentive to credit risk and remain alert to potential flaws in their internal models as the risk environment evolves.