Opening Remarks by OFR Acting Director James Martin at the 2025 Over-the-Counter Derivatives Regulators’ Forum

Good morning, and welcome to the 2025 meeting of the Over-the-Counter Derivatives Regulators’ Forum (ODRF). It is a privilege to open this important gathering, and I want to thank all of you for joining us today. As the Acting Director of the Office of Financial Research (OFR), I am honored to host this forum, which plays a critical role in fostering collaboration, information exchange, and regulatory coordination across jurisdictions.

The ODRF was established to provide financial regulators across the world with a platform to discuss developments in the OTC derivatives markets. Over the next two days, you will address key topics that are crucial for maintaining market integrity and financial stability. These include the use of trade repository data and the effective monitoring practices of central counterparties (CCPs) worldwide. Your work in these areas is vital, especially in an era of rapidly evolving financial markets, to ensure that regulatory responses are both informed and effective.

At the OFR, our mission is to improve financial stability through better data and analysis. A core part of our work is closing critical data gaps that hinder the work of the Financial Stability Oversight Council in understanding systemic risks. For instance, the OFR’s collection of data on non-centrally cleared bilateral repo transactions underscores our commitment to shedding light on opaque market segments. Because Treasuries are the predominant source of collateral in trades, the data also support the resilience of Treasury markets.

The OTC derivatives space is another area where comprehensive, standardized, and timely data are limited. Trade repositories have improved access to transaction-level information, but there remains work to be done to harmonize reporting standards and enhance data quality. Through collective efforts such as those undertaken within the ODRF, we can bridge these gaps and build a more resilient financial system.

The OFR has also been actively engaged in research on CCP resilience, examining topics such as stress testing methodologies, margin requirements, and risk transmission channels. Our findings have helped inform policymakers on how CCPs manage liquidity risk and respond to market shocks.

As you engage in conversations over the next two days, I encourage all of you to share insights, challenges, and best practices from your respective jurisdictions. Financial markets are interconnected, and so too must our efforts be coordinated and collaborative. Collaboration is the key to ensuring that our approaches remain relevant and effective in the face of evolving risks.

I look forward to a productive and insightful dialogue on these critical issues. Thank you for your participation, and I wish you all a successful meeting.