Tackling Teething Troubles: Examining the Current State of the OTC Derivatives Market


This white paper will examine the impact of new regulations on financial firms active in the world’s major markets. By surveying experiences and opinions in relation to issues such as trade data reporting, implementation timelines and the overall outlook for global regulation to date, this white paper aims to provide insight into successes and failures from the point of view of those on the front lines of regulatory change.



WatersTechnology conducted an exclusive survey of senior data management executives in April 2014. The aim was to find out about the effects of the new OTC derivatives regulations on market participants and their thoughts about implementation to date. Are financial firms confident that regulators have designed and implemented a practical system of rules that will enable proper oversight of the market? Is there any apprehension about the global nature – or lack thereof – of the new regulatory regime? How easy has it been to build compliance infrastructure in advance of the implementation of these new rules?

Survey respondents raised concerns about several data-related issues, including the lack of a global framework for consistent reporting and the sharing of information across borders by the authorities. More than half of the survey participants said regulators have yet to meet the primary regulatory objectives of increasing financial transparency and minimizing systemic risk.

When it comes to using the data repositories established to collect this information, the majority of WatersTechnology survey participants have not experienced any technical or operational problems. But there have been other difficulties with the regulatory rollout. For instance, more than a third of respondents stated that differences among jurisdictional implementation schedules have made it more difficult to achieve full compliance. Unsurprisingly, greater clarity is seen as a key driver behind the future development of these regulatory regimes and the internal systems and processes that market participants must create to remain compliant.

This white paper will examine the impact of new regulations on financial firms active in the world’s major markets. By surveying experiences and opinions in relation to issues such as trade data reporting, implementation timelines and the overall outlook for global regulation to date, this white paper aims to provide insight into successes and failures from the point of view of those on the front lines of regulatory change.

photo credit: Dr PS Sahana * Kadamtala Howrah via photopin cc



Equinix, Inc. (Nasdaq: EQIX) operates a global interconnection platform of more than 200 International Business Exchange™ (IBX®) data centers in 52 markets in the Americas, EMEA, and Asia-Pacific. Our mission is to protect, connect and power the digital economy.
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