FSB Issues Fourth Progress Report on OTC Derivatives Reform (with Lofchie Comment)

The Financial Stability Board has published its fourth bi-yearly progress report on the implementation of OTC derivatives market reforms. The key points of the report are that:

• the development of market infrastructure does not appear to be a stumbling block to meeting G20 commitments;
• international policy work on global clearing is substantially complete, with implementation proceeding at a national level; and
• regulatory uncertainty remains the greatest obstacle to further progress.

The FSB invites the public to provide feedback on its report by November 30, 2012.

Once you open the progress report, you may link from the foreword to the prior progress reports and to the initial October 2010 report that made a series of recommendations.

Lofchie Comment: Page 13, Table 2, provides a "Summary of National Progress of OTC derivatives markets reforms." I can only comment as to the United States, but I would say that looking at the chart with its simple grid in which proposals are either "Adopted" or "Proposed" would give one an overly optimistic view of "progress" made by the United States (or it may just be that I am skeptical as to how much of this is progress). The more significant questions are whether what is "adopted" or "proposed" actually makes sense and is working; these are more qualitative questions that the report does not take up.