During the G-20 Summit, held in Washington DC, from November 14 to 15, Brazil 's Finance Minister, Guido Mantega, addressed world leaders on regulations for the derivatives market.
In an interview with the press, Mr. Mantega recommended BM&FBOVESPA's clearinghouse settlement, collateral and custody systems as a model for the rest of world to follow. He also suggested that technical meetings be held by the G-20 members in order to discuss the regulatory instruments that should be put into practice by world markets.
During an interview with the Agencia Estado in Washington on the eve of the Summit meeting, Friday (Nov/14), Mr. Mantega cited the need to evaluate how hedge funds and derivatives should be regulated in the future, explaining to a reporter: “I believe the procedure we use in Brazil should be one of the solutions, which is to establish clearinghouses, like the ones in BM&F, where a derivatives transaction must be registered, the client must deposit collateral, and the client becomes subject to additional margin requirements if necessary. They don't have this here. This is a proposition for the derivatives market and for CDS (credit default swap) market, which perhaps today represents the largest volume of derivatives that have not yet been dealt with, and currently stands at USD55 trillion in derivatives activities that must be regulated together with other markets.”