should be reported to trade repositories. i see two particular priorities at the current juncture. first, i have the impression that international discussions in recent months have focused heavily on the implementation of the mandatory clearing obligation and paid much less attention to objectives in the fields of standardisation and trading. we should not forget that standardisation is a pre - condition for centralised clearing. second, as the eu and the us are moving to finalise the technical details of their new legislative requirements for otc derivatives, i believe that further efforts are necessary to ensure consistent requirements. to this end, it will be essential that both the final eu and us rules converge to fully reflect the substance of the updated principles for financial market infrastructures, which the committee on payment and settlement systems and the international organization of securities commissions will release next month. let me briefly touch on the further development of financial market infrastructures for otc derivatives, focusing on the role of central clearing counterparties ( ccps ) and trade repositories. the rationale for fostering the use of ccps is that a ccp reduces systemic risk by acting as counterparty to every trade, applying multilateral netting, and particularly stringent risk management practices. in this way, potential contagion risks in the case of a default of a ccp clearing member are minimised both for the ccp itself and for the financial system more broadly. on the other hand, trade repositories play a critical role in providing centralised data record services for otc derivatives transactions regardless of their degree of standardisation. this enables a comprehensive overview of open positions and the corresponding exposures arising from otc derivatives transactions. there is a longer - term trend towards global and offshore financial market infrastructures which is linked to the economies of scale inherent in network industries and intensified by the introduction of mandatory clearing for otc derivatives. as a consequence, we are seeing a growing concentration of systemic risks in a limited number of global ccps. such risks have not yet been adequately addressed. in particular, cross - border oversight arrangements often do not exist or are insufficiently developed, which implies that foreign authorities do not have the appropriate information to assess possible risks to their jurisdictions and / or to take action to reduce them. furthermore, procedures and loss - sharing in the case of the default or resolution of global / offshore ccps have not yet been developed. let me also mention that, in parallel, an increasing number of jurisdictions are considering the

chaudron and r. de sousa van stralen. developing macroprudential policy for alternative investment funds, towards a framework for macroprudential leverage limits in europe : an application for the netherlands ; to be published in october 2017 13 see www. esrb. europa. eu / pub / pdf / reports / 20160718 _ strategy _ paper _ beyond _ banking. en. pdf, page 4 : “ to operationalise macroprudential instruments for which a legal basis has already been created, in particular by providing advice to the european securities and markets authority ( esma ) on the aifmd framework for leverage requirements. ” 14 “ margins and haircuts as a macroprudential tool ”, remarks by vitor constancio, vice - president of the ecb, at the esrb international conference on the macroprudential use of margins and haircuts, frankfurt am main, 6 june 2016. 5 / 5 bis central bankers'speeches