Global Derivatives Regulations Pose Compliance Challenges Amid Fragmented Landscape
The global derivatives market, a cornerstone of modern finance, enables businesses to hedge risks tied to interest rates, currencies, and commodities. Post-2008 crisis reforms mandated by G-20 nations introduced central clearing and trade reporting—ushering in transparency but also a labyrinth of conflicting regional rules.
Financial institutions now grapple with duplicative compliance burdens across the US, EU, and Asia-Pacific. Regulatory divergence costs the industry billions annually, compounded by emerging complexities in digital assets and ESG frameworks. Proactive, tech-driven strategies are replacing reactive compliance as the new imperative.