OTC derivatives markets after financial reforms

Over the past five years, OTC derivatives markets have received heightened regulatory attention aiming at improving transparency, reducing counterparty risk and increasing the resilience of this market segment. The progress in the follow-up of the G20 commitments in the EU (EMIR, MiFID II) and US (SEF, Title VII of Dodd-Frank Act) is of particular importance for the future shape of global derivatives markets, given that these two jurisdictions account for roughly 80% of the global OTC derivatives markets. As mandatory clearing and trading obligations kick in, this event looks into how market infrastructure is developing to serve new needs. This event will also host the presentation of the newly released report drafted by ISDA (International Swaps and Derivatives Association) on the current state of central clearing and trade reporting in the global OTC derivatives market. 

• How much of the OTC derivatives market is centrally cleared? How much remains to be cleared? What is the composition of the non-cleared segment of the market? What it is deemed as non-clearable? What incentivises the use of central clearing?
• Do uncertainties about the treatment of cross-border activity (whether of market participants or infrastructure) and misaligned regulatory frameworks create the potential for regulatory arbitrage, increased systemic risk or induce market fragmentation?
• How to prevent that the global OTC derivatives reforms do not simply substitute one group of “too big to fail” (TBTF) entities for another? What type of organisational, conduct of business and prudential requirements for CCPs should be in place? What needs be taken into account when designing a recovery and resolution regime for CCPs?  
• How will mandatory trading and open access obligations change the way how derivatives are traded today? Will this impact trading of complex derivatives contracts?

Speakers

• Stephen O'Connor, Chairman, International Swaps and Derivatives Association (ISDA)
• Michael Davie, CEO, LCH.Clearnet
• Alexander Broderick, CEO and President, Deriv/SERV, Depository Trust & Clearing Corporation (DTCC)
• Uzma Wahhab, Member of Secretariat, Financial Stability Board (FSB)
• Nicolas Gauthier, Policy Officer, Financial Markets Infrastructure Unit, DG Internal Market and Services, European Commission
• Stephen Taylor, Vice President, Head of Market and Product Development, NASDAQ OMX NLX
• Diego Valiante, Head of Capital Markets Research, ECMI and CEPS [moderator]

Downloads

• ECMI Commentary, May 2014:The OTC Derivatives Markets after Financial Reforms by Cosmina Amariei and Diego Valiante, ECMI
• Presentation of Alexander Broderick, CEO and President, Deriv/SERV, DTCC
• Presentation of Michael Davie, CEO, LCH.Clearnet
• Presentation of Stephen O’Connor, Chairman, ISDA

Registration

• Participation in ECMI-CEPS meetings is a benefit of ECMI and CEPS membership. ECMI and CEPS members register free of charge. EU and national officials, academics (including PhD students), NGOs (not representing a commercial interest) as well as press are also admitted free of charge.
• Other participants may be admitted for €100 (21% VAT included, payable at registration). If you have questions regarding membership or participation, please contact diana.musteata@ceps.eu before registering.