Newsletter Oct 2006: Derivatives firms make progress, but must do more

NEW YORK – Despite very considerable progress by the credit derivatives industry in reducing sloppy back-office practices and strengthening operational infrastructure, regulators on both sides of the Atlantic intend to keep the pressure on financial firms to do much more. This has been made clear by three of the most powerful regulators, from Britain and the US, writing in the Financial Times newspaper in late September; and by a surprisingly tough speech from a senior regulator at Britain’s financial watchdog, the Financial Services Authority (FSA), to an International Swaps and Derivatives Association (ISDA) conference in London.