Moreover, the March 1999 update to the Federal Reserve’s Trading and Capital Markets Activities Manual will incorporate the specific sound practices identified in the Basle documents in a special hedge fund subsection of its existing Counterparty Credit Risk Management section.
How will the phasing out process proceed? Our decisions will be guided by gradualism and steadiness and will be consistent with improvements in financial market conditions and real activity. In my view, conditions in both money and financial markets have improved significantly over recent months, notwithstanding the most recent tensions in some segments of the European sovereign debt market.