These cases also illustrated the potential systemic repercussions of malfunctioning OTC derivatives markets, particularly in view of their large size and close linkages with the underlying cash markets.
To enhance the functioning of OTC derivatives markets, the G20 agreed that standardised OTC derivatives contracts should be traded on exchanges or electronic trading platforms and cleared through central counterparties by the end of 2012; in addition, OTC derivative contracts should be reported to trade repositories. I see two particular priorities at the current juncture.