End users' disclosure of their derivatives positions is unsatisfactory despite some general improvements in transparency, according to Hung Tran, deputy director in international capital markets development at the International Monetary Fund.
Tran, echoed the position held by Alan Greenspan, chairman of the Federal Reserve, that transparency and disclosure are not the same thing. Derivatives users generally disclose their exposures in aggregate form with no clear indication about the exact risks that have been transferred and who now holds them. For this reason disclosure is not as meaningful as it could be, he said. For example, a 10K filing will list the total interest rate exposure and gains or loses on the aggregate portfolio, but will not disclose the type of positions.
