In view of the above, it seems odd for the market to charge for large risk premium while pricing SDLs. The pricing anomaly needs to be looked at seriously. For market integrity, the price must reflect true value of the bond and valuation must reflect the market reality. V.IV  OTC derivatives market reforms  34.
In September 2009, G-20 leaders declared in Pittsburgh that all standardised OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties (CCPs) by end-2012 at the latest;  8  BIS central bankers’ speeches  OTC derivative contracts should be reported to trade repositories and non-centrally cleared contracts should be subject to higher capital requirements.