The benefits and costs of over-the-counter (OTC) derivatives reform depend on how measures affect derivatives portfolios and the structure of the derivatives market more broadly, according to BIS monetary and economic department head Stephen Cecchetti, who added that "in particular, responses will alter the degree of netting of counterparty exposures."

Commenting on the findings of the Macroeconomic Assessment Group on Derivatives (MAGD) on the market impact of OTC reform during a speech today