Global regulators' failure to align efforts to reform the $693trillion derivatives market threatens to undermine economic growth,according to the International Swaps & DerivativesAssociation.

Investors are struggling to adapt to regional differences tochanges agreed by the Group of 20 nations as the industry meets forits annual conference in Munich today. In the U.S. traders havebeen reporting derivatives transactions to data repositories andhave been required to have central clearinghouses back theircontracts since last year, while European regulators are stilldefining the requirements.

Rules introduced after the collapse of Lehman Brothers HoldingsInc. to reduce systemic risk have increased transparency, thoughthey've also made hedging more expensive, according to an ISDAsurvey published yesterday. Legislators say the changes willenhance their ability to monitor risk taking, curb market abuse andmake it easier to identify holdings when a financial institutionfails.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.