- Data fragmentation risks G20 derivatives objective
- No authority has complete overview of OTC derivative risk
- Jurisdictions may curb access to derivatives data and ECB must have access to be able to aggregate data
- Access to foreign data key for ECB to assess bank risk
- Global cooperative oversight on counterparties lagging.
The moves to get OTC trades regulated and onto exchanges and clearing houses is fast becoming a logistical nightmare for banks. I know people involved at some of the biggest banks and they are pulling their hair out over trying to nail down the regulations. As Coeure has mentioned , one of the biggest problems is the jurisdiction and where OTC trades should be registered and who exactly is going to manage them. It could come to the point where banks will cease doing certain types of business because the regulatory side is such a chore.
