The mandated use of Central Counterparty (CCP) clearing for standardized over-the-counter (OTC) derivatives was a core policy response to the Great Financial Crisis, committed to at the 2009 Pittsburgh Summit of G20 leaders. The allure of central counterparty credit enhancement was not new....

We investigate regulatory arbitrage during the G20's global derivatives market reform. Using hand-collected data on staggered reform progress, we find that banks shift their trading towards less regulated jurisdictions. The result is driven by agenda items – such as the promotion of central...

This chapter provides an overview of market practices, market structure, and official supervision and regulation in financial markets. This paper also highlights the key features of modern banking and over the counter (OTC) derivatives markets that seem to be relevant for assessing their...