Additionally, they may wish to conduct more of their trading and hedging on more organized exchanges or with clearinghouses, to benefit from the safeguards I noted earlier in my remarks. BIS Review 156/2008  5  Some banks, acting on a collective basis, may decide to take action to improve the quality assurance performance of markets during future times of stress.
Trade associations in the banking industry may consider additional safeguards to reduce the impact of systematic risks among counterparties; for example, banks may collectively act to remove uncertainty associated with back-office inefficiencies and related risks in the credit default swaps market.