and we are not yet there. in fact, at the current stage, no authority has a complete overview of the risks in otc derivatives markets or is able to examine the global network of otc derivatives in depth. hence, fragmentation of data, both at the data storage level and at the access level, is putting at risk the implementation of the overall objective of the g20. the good news is that the g20 leaders, who continuously monitor the implementation of the reform, are aware of this issue. the financial stability board, assisted by the cpss and iosco, has only very recently begun a feasibility study on various approaches to address these shortcomings and intends to issue a report in the first half of next year. bis central bankers ’ speeches central clearing the second area i would like to concentrate on is central clearing. a lot of progress has also been achieved in the area of central clearing. however, although legislation is in force in europe, it may still take more than one year before the clearing obligation becomes effective. actually, this sunday ( 15 september ), the deadline by which central counterparties in europe have to apply for authorisation under eu legislation will expire. within another six months – by mid - march 2014, at the latest – the authorisation process should be completed, after which the mandatory clearing obligation will be determined. the good news is that the share of cleared contracts in relation to total otc derivatives transactions outstanding has consistently increased over the last five years. in the case of interest rate derivatives, for example, the share of cleared transactions increased from 16 % in 2007 to over 50 % by the end of 2012. we expect this share will increase continuously as the clearing obligation comes into effect in many countries. progress is, however, different among asset classes, and substantial scope still exists for further increasing central clearing. a number of challenges still remain. let me mention two key points in this regard. first, i would like to recall that the introduction of mandatory clearing obligations raises new challenges in terms of the distribution and management of financial risk beyond the risk concentration in central counterparties. indeed, mandatory clearing implies that an increasing share of the risks arising from otc derivatives transactions will also be concentrated in a few major clearing banks. this is because the mandatory clearing requirement implies that a larger pool of market participants will need to have access to central counterparties, while only a small part of this pool will be able to access the counterparties directly. indeed, central counterparties

60 ( series 14 ) itraxx main europe 5 yr 23. 04 * 206. 55 88. 00 ( apr 8, 2011 series 14 ) 186. 00 ( series 14 ) wti 61. 47 145. 29 ( on july 3, 08 ) 72. 66 ( sep 22, 2010 ) 88. 91 us treasury 10 yr 5. 29 2. 05 3. 74 ( feb 8, 2011 ) 1. 98 dow jones ( april 29, 2011 ) implied value of dow jones ( feb 8, 2011 ) dxy 80. 08 88. 19 72. 93 ( apr 29, 2011 ) 76. 83 since last one year as on sep 14, * data pertains to may 1, 2007. the data for the entire period ( april 1, 2007 to 1st week of aug, 2007 ) is not available. bis central bankers ’ speeches