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.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
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.