The UK’s Financial Services Authority has said that while it supports greater standardisation of over-the-counter derivatives, coupled with more central counterparty clearing, it does not support mandatory requirements.
The FSA’s stance is at odds with the views of European Commission and US policymakers, who have committed themselves to requiring mandatory clearing of standardised derivatives.
In a 48 page report on the future of the OTC market, published in mid-December, the FSA said: “We...