Global regulators and financial firms pledge to continue pursuing more standardization, improving transparency, and developing central clearing, in an effort to reduce risk in the over-the-counter derivatives market.

A collection of supervisory authorities from the United States, Europe and Japan met with a collection of the largest investment banks and asset management firms at the Federal Reserve Bank of New York on Thursday to discuss ongoing efforts and future priorities for improving infrastructure and reducing risk in the OTC derivatives markets.

The firms provided supervisors with updates on recent work and agreed to commit to further improvements in support of G20 objectives for reducing risks in global OTC derivatives markets. They agreed to set out those plans in a letter to the OTC Derivatives Supervisors Group by March 31.

The industry’s commitments to the ODSG, “will continue to focus on increasing standardization and transparency, as well as the further development and innovation of central clearing facilities to reduce counterparty credit risk”, they said.

“We must continue to advocate for solutions that will extend central clearing benefits to a broader set of participants in a safe and sound manner,” said William Dudley, president and CEO of the New York Fed.

“As market participants begin operating in a more regulated environment, supervisors of major market participants must continue to work cooperatively and proactively to drive structural improvements, monitor emerging risks, and support consistent supervisory approaches across jurisdictions,” he added.