Regulation and innovation are working in concert to promote greater transparency, efficiency and liquidity in derivatives markets, says Andrew Bernard, head of Asia at Tradeweb, writing in Regulation Asia.
Legislators around the world are working to realise the commitment made by G20 nations at Pittsburgh in 2009, which requires all standardised OTC-derivatives trades to be executed on electronic platforms, cleared through central counterparties and reported to trade repositories.
It’s a move which promises to reduce systemic risk and increase transparency in the market. But it is not working alone. Technology is also being developed and rolled out alongside it – simplifying the compliance requirements for institutional investors and providing them with a considerable boost to both liquidity and efficiency.
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