Banks Agree to Provide Derivatives Info

NEW YORK (TheStreet) -- Major investment banking players agreed on Tuesday to provide some clarity on the opaque over-the-counter derivatives market.

The Federal Reserve Bank of New York released a letter from 15 top derivatives dealers, saying they would each submit 90% of new eligible interest-rate derivative trades, and 95% of new eligible credit default swap trades for clearing. The submissions will start in December for interest-rate products and next month for CDS.

They will also submit monthly reports on transactions and outstanding trades.

New York Fed President William Dudley said the new targets will "push major dealers to accelerate their progress." He added that regulators expect them to expand eligible products and increase clearing levels beyond the initial targets.

Firms that signed the letter include Bank of America (BAC)-Merrill Lynch, JPMorgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MS), Citigroup (C), Wells Fargo's (WFC) Wachovia, Deutsche Bank (DB), Credit Suisse (CS), Barclays (BCS), UBS (UBS), Societe Generale, HSBC (HBC), Royal Bank of Scotland (RBS), BNP Paribas, Commerzbank and the International Swaps and Derivatives Association.

-- Written by Lauren Tara LaCapra in New York.

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