Last week the Colombian stock market, Bolsa de Valores de Colombia (bvc), announced it is joining the Colibrí blockchain consortium and collaborating with fintech Contrato Marco. The latter is a technology specialist in managing collateral for OTC derivatives margin requirements.
OTC derivatives are the largest capital markets in the world. While stock markets are worth $90 trillion globally, the derivatives market is valued at more than $625 trillion, with about 86% of that traded off exchanges or over the counter (OTC).
Following the 2008 crisis, the Basel Committee and IOSCO brought in new margin rules for OTC derivatives, which started to phase in 2016, first applying to larger entities. Currently, organizations with month-end balances of more than €750 billion have to comply. Next year entities with balances above €50 billion fall into the rules.
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