Operational uncertainty still a concern in OTC reform

More guidance needed on CCP rules, study finds

Operational complexity and regulatory uncertainty are the biggest worries for banks facing reform of the over-the-counter derivatives market, according to a study published today. Plans to move derivatives transactions from bilateral clearing to clearing through a central counterparty (CCP) are expected to work as expected in terms of reducing settlement, counterparty and systemic risk, according to a survey of financial institutions conducted by UK consultancy Greyspark Partners, but the added