New capital markets regulations in Australia, the EU, US and in some Asian countries mandate reforms to the trading of OTC derivatives and the structure of markets for the products. In several countries, these new regulations include plans to set up so-called trade repositories designed to give regulators a new level of oversight into trading in one of the largest markets by volume.
In the short term, questions abound as to the ability of national-level regulators to utilise such trade repositories to prevent systemic liquidity crises from occurring again. However, in the long term, a consolidated, global view across all the trade repositories and the data they warehouse is necessary, prompting questions of whether it is realistic to expect regulators to piece together an accurate global picture of the health of derivatives markets overall.
GreySpark Partners consultant Malavika Shekar explores the options that could greatly enhance the usefulness of trade repository data and make the G20 commitment to market transparency a reality.