1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
45
40
35
30
25
20
15
10
5
0
Volume, MWh
dic-11 jan-12 feb-12 mar-12 abr-12 may-12 jun-12 jul-12 ago-12 sep-12 oct-12 nov-12 dic-12
MWh
Nº Participants
Lineal (volume registered , MWh)
MEFFPower: Registered volume and participants
Derivatives, at the centre of international financial
regulation
Markets for derivative product continued to be subject
to intense pressure over the course of 2012. An extraordi-
narily high proportion of these products are traded bilat-
erally and are not subject to standard trading rules or
conditions (known as the over the counter, OTC, market),
raising concerns about the systemic risks they pose
and the need to improve these markets’ transparency.
According to the Bank of International Settlements (BIS),
in the first half of 2012 the outstanding notional volume
of OTC derivative contracts worldwide totaled $638 tril-
lion, almost 10 times the global GDP, and 9% less than
the previous years. Meanwhile, the outstanding notional
volume of contracts traded through stock markets and
organised derivatives markets all over the world stands
at 60 trillion dollars, less than 10% of the total value of
the outstanding derivatives in the world at that date.
Among the agreements made by the G20 in 2009 to
reform the global financial architecture we would high-
light the measures relating to the functioning of OTC
derivatives. These include shifting the trading of these
products from the OTC markets for bilateral trading to
organised electronic markets as a way of standardising
and settling them through Central Counterparty Clear-
inghouses (CCP), as well as requiring the use of trade
repositories in OTC derivatives transactions that are
difficult to standardise. The reforms seek to mitigate
systemic risk by improving risk management, reducing
the interconnection of positions and improving transpar-
ency. The basic legislation behind many of these meas-
ures has already been approved (Dodd-Frank Act in the
United States and EMIR in the EU) and is starting to be
implemented. The obligation to use the Central Coun-
terparty Clearing Houses (CCP) has turned out to be the
most complex in terms of execution, due to the fact that
not all the OTC derivatives transactions are sufficiently
standardised to be settled by a CCP, although they may
still pose a systemic risk. The Basel Committee and IOSCO
have proposed that guarantee deposits and margins
also be required for this type of derivative, which is not
settled through CCPs.
46
BME Business Areas
4
Annual
Report 2012
/ BME
1...,36,37,38,39,40,41,42,43,44,45 47,48,49,50,51,52,53,54,55,56,...222