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Bailey McCann, Opalesque New York: The International Swaps and Derivatives Association, Inc. (ISDA) today published a paper that outlines a number of key principles and initiatives for regulators, market participants and industry service providers in order to further improve regulatory transparency of derivatives activity.
In the paper, regulators cite the decision at the recent G20 meeting to improve overall clarity and transparency around financial regulations. This paper is meant to be part of that effort.
The principles include making regulatory requirements for derivatives similar if not the same across borders; the broad adoption of standards including legal entity identifiers (LEIs), unique trade identifiers (UTIs), unique product identifiers (UPIs) and Financial products Markup Language (FpML); and establishing benchmarks for requirements.
"At the most basic level, efforts to improve regulatory transparency of derivatives markets depend
on the ability to consistently compile, aggregate and analyze a portfolio of data related to
derivatives transactions within and across jurisdictions.
Toward this end, regulators around the world should identify and agree on the trade data they
need to fulfill their supervisory responsibilities, and then issue consistent reporting requirements
across jurisdictions," paper authors write.
"This lack of consistency is magnified on an international level. Regulators differ in their
approaches as to whethe...................... To view our full article Click here
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