A group of major financial market participants, industry groups and regulators agreed at a meeting at the Federal Reserve Bank of New York (NY Fed) yesterday to certain steps to improve the infrastructure of OTC Derivatives trading, including to reduce counterparty risk.
The steps are listed in this Statement released by the NY Fed, and detailed further in this speech by Timothy F. Geithner, President of the NY Fed. These improvements follow on a request made by the Presidents Working Group on Financial Markets.
In related news on the Derivatives front, FASB released for public comment last week an Exposure Draft of a proposed amendment to FAS 133, "Accounting for Hedging Activities." The comment period ends August 15.
Separately, FASB released another Exposure Draft last week, “Disclosure of Certain Loss Contingencies,” which would amend FAS 5 “Accounting for Contingencies,” and certain portions of FAS 141R “Business Combinations.” The comment deadline is August 8.
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