Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

20 August 2010

IMF: Mandatory central clearing for OTC derivatives should be phased in gradually


Default: Change to:


The IMF warns that moving OTC derivatives contracts to CCPs will bring high transition costs. However, if approved, mandatory central clearing for OTC derivatives should be phased in gradually.


The Following main points were presented in the IMF position paper:
 
·         The reform proposals should be internationally coherent, in order to reduce the risk of disjointed policies, distorted capital flows and regulatory arbitrage.
·         Moving OTC derivatives contracts to CCPs will bring high transition costs due to the need to post large amounts of additional collateral at the CCPs.
·         If approved, mandatory central clearing for OTC derivatives should be phased in gradually.
·         IMF supports some exemptions for end-users that are involved in “real” hedging transactions.
·         IMF supports the threshold but calls on the Commission to clarify what exactly will be the threshold.

 
 


© International Monetary Fund


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment