-77-
is supported by contributions from private sources such as banks
and nonbank corporations. During the relevant years, the
chairman of the G-30 was Paul Volcker.
2. G-30’s Review of Industry Practices
The G-30 establishes study groups, committees, and
subcommittees to study various matters of interest to the
international financial community. In 1992, the G-30
commissioned an authoritative review of industry practices and
performance with respect to financial derivatives. The G-30 did
so in order to define a set of sound risk management practices
for dealers, end users, and regulators. Later that year, the
G-30 established a Derivatives Project Steering Committee, which,
in turn, created a working group of specialists (working group)
in the financial derivatives field.
The working group conducted a comprehensive study of
financial derivatives and financial derivatives markets drawn
from the experience of market participants. In July 1993, the
working group issued its report (G-30 report), entitled
“Derivatives: Practices and Principles”. The G-30 report
focused on bank regulatory concerns and generally defined a set
of sound risk management practices for dealers and end users.
The working group followed that report with various surveys
published in 1994 as to industry practices. These surveys were
incorporated into the G-30 report.
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