The aim of the new  4  BIS central bankers’ speeches  financial regulatory framework is to reduce risk in the global financial system, not to turn it upside down. Furthermore, the measures adopted in this area are, in my view, not sufficient to capture the macro-prudential dimension of the problem. To this end it will be necessary to achieve, in addition to controlling the role of global dealers within each central counterparty, also a better understanding of the interdependencies between central counterparties. Indeed, even though OTC derivatives central counterparties are typically not interoperable, they are still closely linked owing to the fact that the major clearing banks typically participate in several of them at the same time. In order to be able to better identify and monitor the related contagion risks, we will need to significantly enhance information-sharing across central counterparties, including through access to relevant participant-level data, and conduct analytical work in this field. However, it is not clear at this stage to what extent this analysis can and will be carried out. For instance, the European Market Infrastructure Regulation (EMIR) colleges focus on individual central counterparties. While major central banks of issue, such as the Eurosystem, could in principle support a horizontal risk assessment across central counterparties, given our participation across several EMIR colleges, it is still unclear what type of information we will receive and, in particular, to what extent this will include participant-level data.

In an unprecedented act of international cooperation, the G20 leaders met in 2008 and 2009 in Washington, London and Pittsburgh to coordinate action and address the regulatory gap. As the crisis has shown, deregulation and reliance on self-regulation just do not work. In the area of OTC derivatives, the objective was to have all standardised OTC derivatives contracts traded on exchanges or electronic trading platforms and cleared through central counterparties by the end of 2012. OTC derivatives contracts were to be reported to trade repositories, and non-centrally cleared contracts subject to higher capital requirements. No doubt, a vast amount of technical work has been undertaken during the last four years, and substantial progress has been made in regulatory and supervisory reform in response to the financial crisis. Just to mention some examples: the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) issued, in 2012, new and more demanding international standards for payment, clearing and settlement systems and trade repositories, and have also recently published guidance on authorities’ access to data stored at trade repositories. The clearing and reporting obligation has been implemented in major jurisdictions. The CPSS and the Financial Stability Board (FSB) have issued guidance on the recovery and resolution of financial market infrastructures, including central counterparties. However, it should also be highlighted that little more than half the FSB jurisdictions have legislative frameworks in place that implement the G20 Pittsburgh commitments. Other important reforms are still underway or have only recently been adopted and implementation is outstanding.