Abhatoo - Centre Nationale de Documentation

This report analyses the possible implications for public debt management practices arising from regulatory changes for over the counter derivatives (OTCD) that are being developed worldwide to strengthen the resiliency of the financial system.

Many OECD sovereigns use OTCD in their debt management activities (mainly interest rate swaps and cross-currency swaps). Some of the regulatory initiatives for OTCD markets may lead to changes in sovereign and dealer practices. Potential changes include modifications to collateralization requirements, the use of central clearing for OTCD trades, and increased pre- and post-trade reporting. Issues around sovereign exemptions and the transition of existing OTCD portfolios may also require attention from sovereign debt managers.

Moreover, as sovereigns develop their debt and asset management policies, they may also need to account for the broader public policy implications of their decisions. To maintain well-functioning domestic capital markets and help ensure effective implementation of the regulatory changes, sovereigns may also need to consider adjusting their funding strategies.

The current publication is the outcome of recent background work and discussions by the OECD Working Party on Public Debt Management. OECD debt managers provided input to the study, while it was prepared by a collective of experts from the OECD Working Party on Public Debt Management. All chapters were edited by Hans J. Blommestein, Co-ordinator of the Working Party‘s activities and Ron Morrow, Chair of the Working Party.

Other studies and reports by the OECD Working Party on Public Debt Management include OECD Public Debt Markets: Trends and Recent Structural Changes (Paris, 2002); Hans J. Blommestein, ed., (2002), Public Debt Management and Government Securities Markets in the 21st Century (OECD, Paris), Hans J. Blommestein, ed., (2005), Advances in Risk Management of Government Debt (OECD, Paris), A Public Debt Management Perspective on Proposals for Restrictions on Short Selling of Sovereign Debt ( 2010, Paris).

In parallel, the OECD publishes annually Central Government Debt: Statistical Yearbook, African Central Government Debt: Statistical Yearbook and the Sovereign Borrowing Outlook.