Hod said: "We welcome Mr. Maijoorâs comments. We host one of the most actively used derivatives management systems in the financial markets, which gives us a unique insight to how they are used and traded.
âConceptually the notion of a central clearing house for all derivatives trades is the logical next step to instilling transparency and liquidity in the industry. However, in practice the investment required in the people and infrastructure required to efficiently handle bespoke complex derivatives still remains a significant barrier to progress.
âIt has long been clear to us that markets need the flexibility which bespoke derivatives instruments deliver. Regulations that limit flexibility impair organisationsâ ability to hedge effectively, and could therefore have an adverse effect on the market.
âLegislation to bring greater oversight to the OTC derivatives market must take into account the differences between the various products used and their specific functions and ensure the investment in the necessary resources is made prior to any legislative change.
"It is encouraging to hear this realisation openly expressed by Mr. Maijoor.â