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OTC Principles

The Principles and Practices for Wholesale Financial Market Transactions (OTC Principles) were developed by a drafting committee consisting of EMTA, the Foreign Exchange Committee of the FRBNY, the International Swaps and Derivatives Association (ISDA), the New York Clearing House Association (NYCHA), Securities Industry and Financial Markets Association (SIFMA) (formerly, TBMA and SIA), under the coordination of the FRBNY.

The OTC Principles have been widely heralded as a successful, industry-wide cooperative effort to provide greater clarity regarding market practices in the U.S. OTC financial marketplace and a better common understanding among market participants of their relationship to each other. The OTC Principles confirm the arms-length nature of the relationship between institutional participants in the U.S. OTC financial markets and prescribe various guidelines and best practices in such areas as supervision and training of employees, control and compliance, risk management, confidentiality and the mechanics of specific transactions.
  August 17, 1995 - Memorandum  
  Final Version