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| Tuesday, 21 May 2013, 12:00 HKT/SGT | |
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Source: Promontory | |
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HONG KONG, May 21, 2013 - (ACN Newswire) - Market participants in Asia still face uncertainty and unique challenges as global and local over-the-counter derivative reforms are finalized, says Promontory Financial Group.
The G-20 has made reducing the systemic threat posed by OTC derivatives a priority and significant progress has been made on trading and clearing them through open platforms and central counterparties. But challenges remain, including the lack of a global consensus on data sharing, and formatting between different jurisdictions or between platforms in the same jurisdiction.
"Even a basic agreement in these areas has not yet been globally embraced, which means financial companies may face additional changes to proposed regulations in the coming months," said Ronald Gould, Managing Director of Promontory in Greater China, in the Spring issue of 'Promontory Sightlines'. He is a former senior adviser to the U.K. Financial Services Authority and advises Promontory clients in strategy and regulatory supervision.
Other challenges include a lack of interoperability, which may trap collateral and prevent it from being used across different clearing platforms, as well as requirements for single-jurisdiction central counterparties.
"Given the relatively small size of the Asia OTC derivatives market, participants and regulators, in practice, must follow the lead of larger markets such as the U.S. and Europe. It is essential for them to work together to solve these issues and present a clear and united front in discussion with authorities in key jurisdictions. The eventual answers will have important ramifications on cost, complexity and market stability," said Mr. Gould.
The Spring issue of 'Promontory Sightlines' also includes articles on:
-- The risks associated with different payment instruments
-- A summary of the new U.S. regulatory regime for mortgages
-- Common risk-management failures
-- Heightened expectations from regulators on enterprise risk management
-- Tightening scrutiny of trading operations following the 'London Whale' loss
-- Central bank perspectives on systemically important interest rate benchmarks
-- Next steps for swap dealers after registering under Title VII of the Dodd-Frank Act
-- UK Information Commissioner's Office's new monetary penalties
'Promontory Sightlines' is regularly published at www.promontory.com .
Contact:
Asia
Anne Pang
College Hill
+852-3791-2287
anne.pang@collegehill.com
Americas
Debra Cope
+1-202-384-1011
dcope@promontory.com
Topic: Research / Industry Report
Source: Promontory
Sectors: Daily Finance, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network
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