Nineteen of the largest banks in the $8 trillion (€6.5 trillion) credit derivatives market have agreed to boost their use of electronic trading just days before they are to attend a US Federal Reserve meeting to address concerns about inefficiencies in the trade process.

The International Swaps and Derivatives Association, the industry body, said the dealers have signed up to its so-called Novation Protocol, which is designed to make it easier to transfer existing trades to third parties.