N.Y. Fed pushes for more clearing of OTC derivatives trades

06/22/2010 | Risk.net (subscription required)

The Federal Reserve Bank of New York plans to discourage the use of bespoke derivatives, favoring increased central clearing of over-the-counter derivatives trades. Central bankers are looking into ways to encourage standardization of derivatives, said Theo Lubke, head of financial infrastructure at the New York Fed. "We want to explore what incentives the banks have to use more standardized or bespoke transactions so we can give them incentives to use the standardized transaction types," Lubke said.

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