Last week, the Federal Reserve Bank of New York (FRBNY) held another meeting [http://www.newyorkfed.org/newsevents/news/markets/2010/ma100114.html] for major market participants and their international and domestic supervisors to discuss progress made in improving the infrastructure of the over-the-counter (OTC) derivatives market. This meeting marks the sixth such meeting held for market participants at the FRBNY, and follows the commitments made by market participants last September [http://www.alston.com/financialmarketscrisisblog/blog.aspx?entry=2513] to expand central clearing for OTC derivatives.

At the meeting, market participants agreed to improve transparency and reduce risk in the OTC markets by taking the following actions:

  • Expand central clearing for interest rate and credit derivatives;
  • Expand analysis and regulatory reporting on OTC derivatives transactions; and
  • Improve risk-management for non-cleared derivatives transactions.

These market participants have agreed to address these priorities through newly-issued commitments by March 1, 2010.