The crisis showed that legislation, supervision and oversight of global derivatives market arrangements need to be improved – and that this needs to be done in a consistent way globally. Following agreement by the G20 on high-level objectives, new legislation has recently been introduced in the US and is in an advanced stage in the European Union.
Such legislation stipulates, inter alia, that all OTC derivatives trades will need to be reported to trade repositories and to the extent possible be subject to central clearing via a central counterparty (CCP).