In the spotlight

Credit derivatives

It’s not everyday that confirmation and settlement is the biggest talking point in the derivatives markets. But a letter from UK regulator, the Financial Services Authority (FSA), warning banks about the level of unsigned confirmations in the credit derivatives market, has put back-office operational issues firmly in the spotlight.

The credit derivatives market has surged over the past few years, with the International Swaps and Derivatives Association reporting that volumes had increased 123