MSN MoneyCentral – Leading credit derivatives dealers have committed to take steps that could lead to a “dramatic improvement” in market practices and to cut further the backlog of outstanding tradesthat has plagued the fast-growing market.<\/p>\n
The pledges come amid continuing scrutiny from the New York Federal Reserve and other US and European regulators, and represent a continuation of industry efforts that began last October after the New York Fed had summoned 14 dealers to discuss the problems in the market.<\/p>\n
In contrast to last year, when some hedge funds initially criticised the dealers’ proposed actions, the latest commitments were quickly supported by the Managed Funds Association, a hedge fund industry group.<\/p>\n
“We applaud the major dealers for reaching out to our members for their support in achieving the 2006 targeted objectives,” said John Gaine, president of the MFA.<\/p>\n
“We firmly believe that we can achieve broad market support and a dramatic improvement in credit derivative market practices,” the MFA added.<\/p>\n