The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
Regional & Community Outreach connects the Bank to Main Street via structured dialogues and two-way conversations on small business, mortgages, and household credit.
Economic Education improves public knowledge about the Federal Reserve System, monetary policy implementation, and promoting financial stability through the Museum and programs for K-16 students and educators, and the community.
Statement Regarding Developments in the Credit Derivatives Markets
October 5, 2005
The Federal Reserve Bank of New York welcomes the initial commitments made today by fourteen major market participants to improve the infrastructure that supports the credit derivatives markets. Of particular importance are:
the commitments to move quickly to a regime of substantially improved controls around assignments, ensuring assignments will have consent of all parties,
the targets and deadlines set to reduce confirmation backlogs,
the steps to increase substantially the use of electronic matching platforms, and
the efforts underway to improve the credit default swap settlement process
We will be working closely with other U.S. and international industry supervisors to monitor progress in all of these areas in the coming weeks and months on the basis of common metrics and take stock of the effectiveness of the measures taken to meet these commitments. We will assess in the next few months what additional steps will be necessary to build on this progress.
The Bank is encouraged by the progress made to date and the commitment of all participants to continue to work together on these and other credit derivatives settlement issues.