Major banks reduce unconfirmed trades by 70%

Dealers with large derivatives portfolios have made significant progress in reducing the number of unconfirmed credit derivatives trades, according to the latest meetings organised by the Federal Reserve Bank of New York which were held in New York yesterday.

Since September 2005, when they were first called upon to address their operational deficiencies, major firms have reduced the number of unconfirmed trades by 70% on average, and the number of confirmations outstanding for more than 30 days by 85%.

But banks and regulators alike placed more emphasis on the collaborative efforts that the process has produced. “In the last year, the single most impressive thing is that we now have a forum to express issues and what we need to achieve together,”