In September 2009, G-20 Leaders agreed in Pittsburgh that:
All standardised OTC derivative contracts should be traded on exchanges or electronictrading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements. We ask the FSBand its relevant members to assess regularly implementation and whether it is sufficient toimprove transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.
At the initiative of the Financial Stability Board (FSB), in April 2010, a working group led byrepresentatives of the Committee on Payment and Settlement Systems (CPSS), theInternational Organization of Securities Commissions (IOSCO) and the EuropeanCommission was formed to make recommendations on the implementation of the G-20objectives. The working group was comprised of international standard setters and authoritiesresponsible for translating the G20 commitments into standards and implementing regulation.It focused on common approaches to OTC derivatives market reforms to achieve consistencyin implementation across jurisdictions, while promoting greater use of OTC derivatives products in standardised form and minimising the potential for regulatory arbitrage. Theworking group will make regular reports on progress in implementing reforms to the FSB,with the first report to be given in March 2011.