WASHINGTON — Fifteen big banks that dominate worldwide trading of derivatives have committed to greater transparency in a $600 trillion market that regulators say needs stricter oversight to protect the financial system.
The international group of banks — including Bank of America, Citigroup, Deutsche Bank, Goldman Sachs and JPMorgan Chase — made the commitment for targets in expanded central clearing systems to the Federal Reserve Bank of New York in a letter Tuesday. It is part of a series of voluntary steps by the banks to expand use of clearinghouses for the over-the- counter market in derivatives.
Congress is weighing a legislative proposal by the Obama administration to subject the banks that trade derivatives to new capital requirements and other rules, and establish a new network of clearinghouses to provide transparency for trades. The Associated Press
