Global regulators have drafted guidelines for standardizing the reporting of derivatives trades to safeguard against systemic risks between dealers of over-the-counter products, Financial News reports. The International Organization of Securities Commissions and the Bank for International Settlements (BIS) said all derivatives trades ought to be reported to central information warehouses, called trade repositories, using a common format. Trades must be tagged with codes known as “legal entity identifiers”, which would be recognized across different global trade repositories. The BIS said that further information on off-exchange trades will help in reviewing systemic risk and financial stability and suggested that banks report a global minimum set of data on their derivatives trades, adds Financial Times.
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