Corporate Advisory

Proliferation of OTC Repositories causing regulator concern

EU and US industry and regulatory figures have warned that the number and nature of repositories listing over-the-counter (OTC) derivatives trades is threatening to blind regulators to market risk.

The collapse of Lehman Brothers in 2008 – which triggered the financial crisis – led to calls by the G20 in 2009 for the introduction of swap data depositories, in order to bring clarity to the OTC marketplace.

Now however there are around 25 of these facilities, not really communicating with one another and actually the much required data transparency is more opaque than ever in this space.

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