Improving processing of credit derivatives

In response to concerns about backlogs of unconfirmed trades in the over-the-counter (OTC) derivatives market, a group of dealer banks have written to the New York Federal Reserve committing to improving the trade processing of credit derivatives.

In recent years, the volume of trades has increased and many banks are struggling to process them.  Many OTC trades are still confirmed by email or fax rather than on electronic trading platforms.