"As market participants begin operating in a more regulated environment, supervisors of major market participants must continue to work cooperatively and proactively to drive structural improvements, monitor emerging risks, and support consistent supervisory approaches across jurisdictions. The ODSG will continue to play a key role in meeting these objectives," said William C. Dudley, president and chief executive officer of the Federal Reserve Bank of New York.
Market participants provided supervisors with updates on recent work and agreed to commit to further improvements in support of G-20 objectives for reducing risks in global OTC derivatives markets. Participants agreed to communicate next steps and commitments in a collective letter to the ODSG by March 31, 2011, in accordance with the recommendations of the Financial Stability Board (FSB) in its October 2010 report entitled "Implementing OTC Derivatives Market Reforms."
Industry commitments to the ODSG will continue to focus on increasing standardization and transparency, as well as the further development and innovation of central clearing facilities to reduce counterparty credit risk among a broader set of participants in the OTC derivatives markets. "We must continue to advocate for solutions that will extend central clearing benefits to a broader set of participants in a safe and sound manner," said Mr. Dudley.