Standard setters consult on incentives for OTC derivatives clearing

The FSB,  Basel Committee, the CPMI and IOSCO have published a joint consultation on incentives to centrally clear OTC derivatives. The organisations want to look at how the post-crisis measures have worked and whether there is a need to fine-tune them. A post-reform evaluation suggests that there are overall good incentives for using central clearing, but there is less attraction for some categories of client than others. It also found that external factors can affect willingness to clear centrally, and that only a relatively small number of clearing firms offer client clearing services.

Consultation closes on 7 September.