Data fragmentation hampers oversight

The G-20 had hoped the reporting of OTC derivatives trades would give regulators an opportunity to spot the build-up of systemic risk. But domestic reporting requirements, a lack of standard data formats and local privacy laws are preventing supervisors from getting a clear picture of overall activity. Luke Clancy reports

When the Group of 20 (G-20) nations agreed a package of measures to reform the over-the-counter derivatives market in September 2009, a requirement to report all OTC derivatives to trade repositories looked to be the least controversial – and, arguably, the easiest to achieve. The Depository Trust & Clearing Corporation’s (DTCC) Trade Information Warehouse was already up and running for credit derivatives, and a series of industry-run beauty contests were quickly held to choose a single