Published Work
At its two-day annual meeting the FER discusses a specific policy issue and, if there is consensus (⅔ majority) among members, subsequently issues a statement to the public summarizing its analysis, conclusions, and policy recommendations. FER statements are distributed to policy makers and the media.
Full articles are available for download within each Statement page.
Derivative Markets and Financial Risk
Current concern about derivatives centers on the expanding use of customized off- exchange (or OTC) derivative instruments, the largest component of which are interest rate and currency swaps. Although acknowledging that the growth of derivatives is a reflection of the market's demand for better instruments with which to manage risk, both the Congress and regulators remain uneasy about the misuse of derivative instruments and the potential consequences that might flow from a major default in derivatives markets.