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Federal R eserve Bank
OF DALLAS
ROBERT

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

DALLAS, TEX AS

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

DeCCIXlber 31 1996

75 2 6 5 -5 9 0 6

Notice 96-126

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 1995 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
voluntary innovations in the annual report disclosures of a number of large, internationally
active banks and securities firms. In particular, there were notable improvements in
quantitative disclosures about market risk in 1995 and 1994. However, despite encouraging
advances in disclosure practices by a number of institutions in the G-10 countries, many
institutions continued to disclose very little about their trading and derivatives activities.
In addition, the report includes recommendations made by the Basle Committee
and IOSCO last year for farther 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.

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank o f Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston
Branch Intraslate (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)

The report’s recommendations draw on concepts developed in the Discussion
Paper on Public Disclosure o f Market and Credit Risks by Financial Intermediaries released 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 Committee, Frame­
work for Supervisory Information About the Derivatives Activities o f Banks and Securities Firms,
issued in May 1995.
MORE INFORMATION

For a copy of the joint Basle Committee/IOSCO supervisory information frame­
work, please contact Brenda Craine at (214) 922-5254. Please refer to the notice number at
the top of the page.
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