The CNMV commissioner, Angel Benito, is to chair the review group of the implementation in Mexico of the G20 reforms on OTC derivatives.
For the first time, the CNMV is to chair a Financial Stability Board (FSB) review group as part of its Standards Implementation Committee (SCSI) peer reviews. The CNMV commissioner, Angel Benito, shall lead, as chair, the review group, which is to review the implementation of the G20 reforms in the OTC (Over-The-Counter) derivatives markets in Mexico. The other members of the review group are Nancy R. Doyle (Commodity Futures Trading Commission, United States), Kevin Fine (Ontario Securities Commission, Canada) and Sergio Schreiner (Comissão de Valores Mobiliários, Brazil). José Manuel Portero, senior economist at the CNMV, is also to collaborate with the group by assisting the Chair.
The group’s mission is to analyse the progress achieved in Mexico in the implementation of the reforms recommended by the G20 on the OTC derivatives markets, mainly regarding data reporting, centralised clearing and trading on platforms.
The review of the reforms implemented in Mexico are to deal with matters such as:
- the legal and regulatory context of OTC derivative markets in Mexico
- plans to implement measures to mitigate the risk of unsettled derivatives in a central counterparty
- data reporting issues
- definition of mandatory centralised clearing and market-trading instruments.
The group, which has already started its work, plans to present its preliminary report at the SCSI meeting in December, and its publication on the FSB website is scheduled for early 2020, once the report is approved by the Plenary.
The FSB develops and implements G20 recommendations and requirements relating to the financial sector in priority areas such as strengthening the resilience of the financial sector, procedures to address global systemic entities, non-bank financial intermediation and OTC derivatives.
To this end, the Standards Implementation Committee (SCSI), in which the CNMV participates through its chair, devises the following lines of action:
- ensure implementation of the international financial standards agreed by the G20 and the FSB;
- report to the FSB plenary, and indirectly to the G20, on the degree of implementation of the standards in each of the member jurisdictions;
- conduct what are known as thematic or country peer reviews among its members; and
- encourage global adherence to FSB validated prudential regulatory and supervisory standards developed by standards-setting organisations such as IOSCO and the Basel Committee.