From Bloomberg.com: U.S.

Traders in the $8 trillion market for credit derivatives will be able transfer obligations to a third party electronically, no longer requiring a faxed signature that contributed to a backlog of paperwork and raised concern among regulators.

The agreement, which takes effect Oct. 24, was announced by the International Swaps and Derivatives Association today, two days before a meeting of 14 of the world’s largest banks at the Federal Reserve’s New York office to address the delays in confirming trades.

Banks and securities firms are struggling to keep up with administration as the credit derivatives market grows. They risk being overwhelmed by investors seeking settlement of contracts if there is a corporate default, an industry group led by E. Gerald Corrigan, managing director at Goldman Sachs Group Inc. and a former New York Fed president, said in a report in July.