The Macroeconomic Assessment Group on Derivatives (MAGD) which comprises financial and economic modelling experts from central banks and other authorities has published a report on the macroeconomic impact of regulatory reforms
applicable to over-the-counter (OTC) derivatives.
The report focuses on the effects of:
(i) mandatory central clearing of standardised OTC derivatives;
(ii) margin requirements for non-centrally-cleared OTC derivatives; and
(iii) bank capital requirements for derivatives-related exposures.
It concludes that the reforms, once fully implemented, will result in net benefits
to economies in the long term.