Newsletter Dec 2006: Equity derivative dealers promise to shape up

NEW YORK – After the striking progress in reducing sloppy back-office practices and strengthening operational systems in the credit derivatives market, the major financial firms are turning their attention, with similar apparent zeal, to the equity derivatives sector. Some 17 major US and European banks and investment banks have written to Timothy Geithner, president of the Federal Reserve Bank of New York, setting out their plans to improve the efficiency of the equity derivatives market. They also registered an intention to monitor the interest rate, currency and commodity derivatives markets.