LONDON (Reuters) - The world's top derivatives markets are making good progress in implementing tougher rules for the $640 trillion sector but much still needs to be done, a G20 task force said on Friday. The new rules will force banks to record and clear transactions and are among the world's core response to the financial crisis that toppled Lehman Brothers, the U.S. bank whose fate was sealed because of its huge derivatives holdings.
The G20 has agreed an end of 2012 deadline for introducing the rules, and with just six months to go "much remains to be completed", the Financial Stability Board said in a report prepared for next week's summit of G20 leaders in Mexico.
"Broadly speaking, the jurisdictions currently with the largest markets in OTC derivatives - the EU, Japan and the U.S. - are the most advanced in structuring their legislative and regulatory frameworks," the FSB report said.
"They expect to have regulatory frameworks in place by end-2012 and practical implementation
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