G20 acknowledges slippage on swaps reform
* New rules aimed at limiting risk in swaps market
* Goal to implement swaps reforms unlikely before year end
By Alexandra Alper and Louise Egan
MEXICO CITY, Nov 5 (Reuters) - International groups tasked with safeguarding the world banking system conceded they would miss a deadline for new rules aimed at limiting risk and boosting transparency in the $648 trillion over-the-counter swaps market.
At a meeting of the Group of 20 leading economies in Mexico City, the head of the G20's regulatory arm said the goal of having strong global swaps reforms in place by the end of 2012 was not in the cards.
"We are going to use all the time that is left in 2012 to get as much done in 2012 and then take stock instead of what remains to be done in a reasonable time frame," Financial Stability Board chief Mark Carney told reporters.
With memories of the 2007-2009 financial crisis still raw, the G20 agreed in late 2009 that derivatives like interest rate swaps and credit default swaps should be traded on electronic platforms, centrally cleared and recorded, by the end of 2012.
The FSB, the group's regulatory arm , has been tracking each country's progress on implementing the rules.
In a communique, the G20 economies stuck to an end-of-year deadline for new bank capital rules but acknowledged that cross-border disputes had hampered timely implementation of the swaps rules. Continued...