On Friday, APRA, ASIC and the RBA release the 'Survey of the OTC Derivatives Market in Australia' report. The report summarises the key findings of a survey conducted by the regulators over recent months and identifies areas in which operational and risk management practices could be enhanced. The survey was carried out in response to an April 2008 recommendation by the Financial Stability Forum (now the Financial Stability Board, post the G20 meeting in March) that regulators take action to ensure a sound legal and operational infrastructure for OTC derivatives markets.More than 30 firms responded to the survey, providing information on institutional details, risk management and infrastructure, and products and counterparties. The regulators note that the market plays an important role in the overall functioning of Australia's financial system and any disruption to activity could have wide ranging implications.For example, in the turbulence that followed the collapse of Lehman Bros last September, there was widespread uncertainty among market participants that resulted in price volatility and a deterioration in liquidity across products. The regulators wish to strengthen market resilience in the face of such shocks.While the report identifies a number of positive developments in recent years, the regulators have concluded that there remains scope for further improvements in operational and risk management practices, particularly in the areas of market transparency, legal documentation, collateralisation, and the use of infrastructure. The regulators will contact industry participants over the next few weeks to discuss possible enhancements in these areas.A move towards centralised exchange-based trading where practicable appears to be on the agenda.