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Federal Reserve Bank
OF DALLAS
ROBERT

D. M C T E E R , J R .

P R E S ID E N T
A N D C H IE F E X E C U T IV E O F F IC E R

DeCCmbeT 20 1995

DALLAS, TEXAS
7 5 2 6 5 -5 9 0 6

Notice 95-119
TO: The Chief Executive Officer of each member
bank, bank holding company, and foreign agency
in the Eleventh Federal Reserve District
SUBJECT
Joint Report on the Public Disclosure of
Trading and Derivatives Activities of
Banks and Securities Firms
DETAILS
A joint report on the public disclosure of trading and derivatives activities of
banks and securities firms worldwide has been issued by the Basle Committee on
Banking Supervision and the Technical Committee of the International Organisation of
Securities Commissions (IOSCO).
This joint report provides an overview of the disclosures about trading and
derivatives activities in the 1994 annual reports of a sample of the largest, internationally
active banks and securities firms in the G-10 countries, and notes improvements since
1993. The analysis builds, in part, upon a framework used by the Federal Reserve in
analyzing the trading and derivatives disclosures of major U.S. banking organizations.
The analysis revealed that there have been general improvements as well as
significant voluntary innovations in the annual report disclosures of a number of large,
internationally active banks and securities firms. However, despite encouraging advances
in disclosure practices by a number of institutions in the G-10 countries, many institu­
tions continued to disclose very little about their trading and derivatives activities.
In addition, the report makes recommendations for further improvements in
disclosures of qualitative and quantitative information about institutions’ involvement in
trading and derivatives activities, including their risk exposures and risk management
policies, and the earnings impact of these activities.
The report’s recommendations draw on concepts developed in the Discussion
Paper on Public Disclosure of Market and Credit Risks by Financial Intermediaries released

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastale (800) 592-1631, Interstate (800) 351-1012; Houston
Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

by the Euro-currency Standing Committee and the G-10 central banks in September
1994, and in the joint report of the Basle Committee and the IOSCO Technical Commit­
tee, Framework for Supervisory Information About the Derivatives Activities of Banks and
Securities Firms.
MORE INFORMATION
For a copy of the joint Basle Committee/IOSCO supervisory information
framework, please contact Brenda Craine at (214) 922-5254.
For more information regarding the joint report, please contact Gayle Teague
at (214) 922-6151 or Julie Mills at (214) 922-6229.
Sincerely yours,


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102