Derivative trade-reporting gaps hobble policymakers, global survey to show

3 September 2018 9:23am
An international survey to be released soon will show “considerable” gaps in derivative contracts data reported to trade repositories, as well as limited use of this information by policymakers, said Claudia Buch, the German central bank’s No. 2 official. The limited usefulness of this data, which is intended to let authorities compile banks’ overall derivatives-risk exposure, stems from “incomplete coverage, reporting lags and the complexity of the existing data,” said Buch, who also heads the global panel that conducted the survey.

An international survey to be released soon will show “considerable” gaps in derivative contracts data reported to trade repositories, as well as limited use of this information by policymakers, said Claudia Buch, the German central bank’s No. 2 official.

The limited usefulness of this data, which is intended to let authorities compile banks’ overall derivatives-risk exposure, stems from “incomplete coverage, reporting lags and the complexity of the existing data,” she told a Basel, Switzerland conference* Thursday.

Buch, head of the global Irving Fisher Committee on Central Bank Statistics, which conducted the survey, also noted that a 127-page Financial Stability Board evaluation in August “mentions important shortcomings in the use and availability” of trade repository data.