Regulators have been told to work faster to iron out cross-border spats over new rules to reduce risks in the $650 trillion derivatives market as progress stalls ahead of a December deadline. The vast market has traditionally been opaque, with contracts traded between big banks like Goldman Sachs, Deutsche Bank and HSBC. The reforms will alter the sector's economics and business models while raising costs for customers. The Group of 20 economies (G20) agreed in 2009 during the financial crisis that derivatives like interest rate swaps and credit default swaps should be traded on electronic platforms, centrally cleared and recorded, by the end of 2012. The changes will allow regulators to spot risks and identify who is behind each transaction faster and avoid the confusion seen when U.S. insurer AIG hit the rocks in 2008 and needed a $182 billion bailout. The Financial Stability Board (FSB), the G20's regulatory arm, said in a report for a G20 finance ministers' meeting in Mexico
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