The International Swaps and Derivatives Association has detailed the industry’s roadmap for making the over-the-counter (OTC) derivatives markets safe and efficient. It lays out measures to improve four key areas - boosting standardization, expanding central clearing, enhancing bilateral risk management and raising transparency.
To expand central clearing a coordinated, phased-in approach will be used to centrally clear more transactions in eligible products. Robust bilateral risk management practices will be employed and improved, such as the implementation of standardized methods for reconciling portfolios and resolving disputed margin calls.
Click here for the release from ISDA.