OTC reforms: Numbers only tell part of the story

The derivatives industry has made significant progress towards the goals set by the Group of 20 nations, but regulators are not completely happy with the results – and may have some tidying up to do. Fiona Maxwell reports

On paper at least, it looks like regulators have what they wanted. Nearly five years after the Group of 20 (G-20) nations first demanded reform of over-the-counter derivatives, the vast majority of eligible trades are now being cleared, while the use of electronic confirmations and bilateral collateral agreements has also increased. But regulators believe there is more work to do – not least, by themselves.

“The G-20 mandate makes sense, but it is unrealistic to think regulators are going to get