Following the financial crisis, the leaders of the Group of Twenty (G20) nations agreed to a series of measures to increase the transparency of the over-the-counter (OTC) derivatives market and to reduce systemic risk. These reforms bring sweeping changes for all financial institutions.

They fundamentally alter the structure of the OTC derivatives markets, significantly impacting the business models, profitability, legal entity structures, operations, data and technology of financial institutions’ derivatives businesses.

Global regulatory reform initiatives are underway to implement these measures – e.g., the US Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the Markets in Financial Instruments Directive/Regulation (MiFID II/ MiFIR) and the European Market Infrastructure Regulation (EMIR).

The uncertain and evolving regulatory timelines are challenging firms to strategically prioritize imminent market developments and rulemaking against the longer-term, global regulatory change process and related jurisdictional challenges.

By proactively responding to the new business environment and effectively structuring their OTC derivatives business, institutions can take advantage of opportunities, protect franchise value, and avoid the potential downside impacts of these changes.

For more information on OTC derivatives and capital markets reform, and the issues and actions that need to be addressed, please read our materials below.

AIFMD: prepare for European depositary reform

Read about the key requirements of the proposed AIFMD’s depositary reforms on the European alternative investment industry and the potential cost for depositaries, managers and investors.

Summary of Singapore OTC derivatives regulation

The Monetary Authority of Singapore released two consultation papers. Our regulatory compliance table summarizes some points for key industry players (market operators and clearing facilities).

What's driving the MiFID review?

The European Commission released proposed rules to amend MiFID I, but is it incremental change or fundamental reform? Our summary examines the potential impacts.

What defines OTC derivatives readiness?

We surveyed financial institutions to understand how they're preparing for and responding to Dodd-Frank, particularly given the aggressive timelines set by regulators.

12 actions for risk management

Based on our Risk Management for Asset Management survey, we've identified 12 actions that will likely help firms improve their risk management processes.

OTC derivatives reforms: facilitating change

In this evolving environment, institutions can uncover opportunities and avoid potential risks by structuring their derivatives business.

Managing a ‘rule implementation’ framework

With the steady pace of regulation, financial institutions need to understand which rules pertain to their business models.

The Dodd-Frank Act and OTC derivatives regulation

With regulators adopting rules at a steady pace, CCOs are shifting their priorities to ensure their businesses comply with rules.

Navigating OTC derivatives reforms

This article discusses considerations relating to important issues that deserve CCO attention, including CCO designation, registration and clearing.