Dealers were working overtime to downplay regulators' worries about unconfirmed credit derivatives trades. "Our confirm backlog has massively decreased," said Derek Smith, head of investment grade default swap trading at Goldman Sachs. Improvements in electronic trading have been largely responsible for this, said Smith. Peter Axilrod at The Depositary Trust & Clearing Corporation said, "Where you have paper, you have backlogs."
But, at an earlier panel, Gay Huey Evans, director of the Markets Division at U.K. regulator the Financial Services Authority, sounded a broad warning to derivatives dealers. "I want all of you to recognize the risks," said Evans, speaking on the chairman's panel. "Do not ever wait for the train to derail," she warned.