October 11, 1999

TO: Banks

Federally Regulated Trust and Loan Companies

Federally Regulated Life Insurance Companies

Federally Regulated Property and Casualty Insurance Companies

Subject: Release of Paper on Recommendations for Public Disclosure of Trading and Derivatives Activities

On October 5, 1999, the Basel Committee on Banking Supervision and the Technical Committee of the International Organization of Securities Commissions (IOSCO) issued guidance to banks and securities firms on public disclosures in the trading and derivatives areas. The document identifies categories of information, which, if publicly disclosed, will greatly assist markets and counterparties in undertaking sound risk assessment of financial institutions’ trading and derivatives activities.

This initiative forms part of a continued effort by the two Committees to encourage banks and securities firms to provide markets participants and the general public with meaningful information on their trading and derivatives activities.

OSFI has taken an active role in the Basel Committee and endorses the principles put forward in the paper. The paper is available in English only on our web site at http://www.osfi-bsif.gc.ca and on the BIS web site at http://www.bis.org. Questions on the paper should be directed to Nancy Sinclair, Financial Analysis and Data Management Division, at (613) 990-7286 (voice) or (613) 991-6248 (fax).

John Thompson

Deputy Superintendent

Regulation Sector