Welcome to theassetmanager.com, the website that reports on the activities and events of The Asset Managers Forum.
This website is a resource for sell side and buy side operations professionals to pursue development of industry-wide securities processing and operations projects and enhancements.
The Asset Managers Forum’s current activities are summarized here.
July 21, 2010
Regulatory Reform – Senate Colloquies
The Senate has engaged in scripted conversations between Senators that take place on the Senate floor. These floor speeches are called colloquies and may provide regulators more information about the original intent of the new legislation in the Dodd-Frank Bill. The colloquies were compiled by Davis Polk, and are available HERE.
July 15, 2010
TMPG Release
The Treasury Markets Practice Group (TMPG) released on July 15, 2010 best practice recommendations for industry review. These recommendations relate to trading and settlements in the US Treasury, Agency debt and Agency MBS markets. Feedback on these recommendations can be provided to TMPG through July 29, 2010.
The TMPG release is available HERE.
The related press release is available HERE.
June 16, 2010
AMF Comments on Tri-Party Repo
The Asset Managers Forum Tri-party Repo Working Group responded to the questions the Federal Reserve Bank of New York posed on the Tri-Party Repo Infrastructure Reform and related recommendations.
The AMF response is available here.
May 17, 2010
Tri-party Repo Infrastructure Reform
Two important papers were published on the tri-party infrastructure reform today.
The first is the final report by the Task Force on Tri-Party Repo Infrastructure. The report identifies several areas for improvement, and makes recommendations for those areas that include operational arrangements, dealer liquidity risk management, margining practices, contingency planning, and transparency.
Press Release on Task Force Report
Task Force on Tri-Party Repo Infrastructure Report
The second paper was published by the NY Fed. It is a white paper on the work of the Task Force and it highlights policy concerns and seeks public comment on the Task Force recommendations.
If you are interested in joining the AMF Tri-party Repo Working group please contact Elisa Nuottajarvi at enuottajarvi@sifma.org.
Current Initiatives – May 2010
AMF Same Day Affirmation (SDA) Working Group
- This working group was established to analyze the need and cost / benefit of a regulatory mandate for same day affirmation. The group has discussed the confirmation / affirmation process for both asset managers and custodians, including various vendor solutions used in the process; explored risks involved in the full trade verification process; and analyzed the risk reduction that matching and SDA introduce. Based on its work, the working group recommends requiring matching as a condition to settlement, and SDA as an industry best practice.
AMF TMPG Working Group
- The Treasury Market Practices Group (TMPG) recommended a fail charge for treasuries in spring 2009. The AMF TMPG Working Group was created to address the asset manager and custodian workflow in connection with the fails and related claims; and released the “Industry Procedures” white paper to guide the claims process. The working group continues to address issues related to the treasury fails claims process; and anticipates providing feedback for the upcoming recommendations TMPG will make on the MBS market.
AMF TBA Working Group
- The purpose of the TBA Working Group is to address the accounting issue relating to collateralizing TBAs, and to determine whether the working group could seek relief for this issue. Collateralizing a TBA roll (a buy and sell transaction in a future month) will make it a financing transaction from accounting policy standpoint under FAS rule 140. It is unfortunate that this accounting issue arises when asset managers are looking to use collateralization as a risk mitigation tool in TBA transactions (especially since the Lehman collapse). Collateralization would be especially helpful for 40 Act funds where it would help the risk profile of the fund. The working group is in the process of establishing some examples that can be presented to accounting professionals.
AMF Derivatives Operations Committee
- The Committee is focused on the operational industry commitments for OTC derivatives and ensuring that asset managers and custodians are aware of the commitments and offers help with operational guidance to meet the commitments. The industry focus has been on CDS clearing and overcoming the impediments that exist for asset managers to fully participate in the clearing process. The Derivatives Operations Committee will determine operations focused impediments once the major legal and regulatory impediments have been fully scoped out.
AMF Tri-party Repo Working Group
- The NY Fed Task Force on Tri-Party Repo Infrastructure has work underway to develop a set of recommendations to improve the tri-party repo transactions process and to mitigate related risk. The Task Force is expected to publish its recommendations soon. The AMF Working Group will look at the upcoming recommendations and comment on them from the asset management industry perspective. The working group will also offer guidance on operational implementation of the ultimate recommendations.
April 29, 2010
New AMF Working Group on Triparty Repo
As you may know, there is work underway to develop a set of recommendations to improve the triparty repo transactions process and to mitigate related risk. The Task Force on Tri-Party Repo Infrastructure was formed in September 2009, and operates under the Payments Risk Committee of the NY Fed. The Task Force put out a Progress Report in December 2009, and is expected to publish its recommendations soon.
The Asset Managers Forum is creating a Working Group to look at the upcoming recommendations from the asset management industry perspective, and to comment on the recommendations. The working group will also offer guidance on operational implementation of the ultimate recommendations.
Please send the name and contact info of the person from your firm that will participate in the AMF’s Triparty Repo Working Group to Elisa Nuottajarvi of the AMF staff at enuottajarvi@sifma.org. If you have any further questions regarding this working group, please email Elisa or call at 212-313-11166.
Here is a summary of the type of issues the Task Force on Tri-Party Repo Infrastructure is looking at:
Operational Arrangements: Development of efficiencies and standardization to reduce the massive amount of intraday credit provided by the Clearing Banks. Operational advancement can be achieved through; standardization of Trade Booking and formalization of a three-way trade confirmation practice to result in a significant reduction of the daily “unwind” processes.
Margining Practices: Anticipation of the extent to which market conditions could worsen and set margins accordingly. Develop policies and procedures through the analysis of margin levels, valuation of collateral practices and enhancing the transparency of the margining process.
Contingency Planning: Cash Investors are unprepared to manage a Dealer default, specifically liquidation of collateral. Overall, Cash Investors should be prepared for a Dealer default through having the necessary policies, procedures and systems in place to manage/liquidate the delivery of collateral.
Transparency: With the lack of transparency to many aspects of the repo market (size, composition, margin levels, etc.), establish market practices for the publication of key information provided by the Clearing Banks.
Here is a link to the December 22, 2009 Progress Report by the Task Force on Tri-Party Repo Infrastructure: http://www.newyorkfed.org/prc/report_091222.pdf
December 17, 2009
AMF Member Survey Results
The AMF member survey is designed to provide valuable information about AMF members’ current priorities and to help the Steering Committee and staff in the process of developing the agenda for the year 2010 ahead. The foremost goal of the AMF is to represent the interests of our member firms and to ensure that we address the critical issues facing asset management operations. We would like to thank those AMF members that filled out the survey during November 2009. 27 individual responses were received, from 17 firms. By publishing the results, we hope that next year we’ll get an even better response next year. The responses are presented here for your information.
December 15, 2009AMF Derivatives Operations Committee Update
In the latter part of the year 2009, the AMF Derivatives Operations Committee has been very focused on derivatives clearing, and specifically the regulatory deadline of 12/15/09 for the central counterparty platforms to offer access to the buy side for CDS clearing. The Committee, co-chaired by Ila Eckhoff of BlackRock, Lara Gilman of Fidelity Investments; and Neil Wright of State Street, has distributed updates from the CCP providers, including CME, ICE, Eurex and LCH Clearnet. The Committee also devised a questionnaire for the CCP platforms that asks how they each handle various items that are important to asset managers. The CCP provider responses to the questions were then put into a matrix and distributed to committee members as well as posted on the AMF web site in order to help AMF members to gather information about the various CCP providers and to help in the decision making on which platforms to utilize. The Committee is planning to continue to follow this important topic and to assist asset managers as more AMF members begin clearing CDS in 2010. Other topics that the Committee will work on in 2010 are monitoring the Fed letter commitments, and on helping the derivatives market overcome processing challenges. The Committee also closely follow's the SIFMA Asset Management Group efforts, and its proposed amendments, related to the derivatives legislation moving through the House and the Senate in Capitol Hill, Washington DC.
Since the inception of AMF Derivatives Operations Committee in January 2008, the Committee's distribution list has grown tremendously and now includes over a hundred asset management industry professionals. The meetings, which take place via a conference call, on the third Wednesday of the month, at 10 am Eastern time, are very well attended with usually over 50 participants calling in to get the latest information relevant to the asset management business. For more information regarding the Committee, of if you, or a colleague at your firm, would like to joint the Committee, please contact Elisa Nuottajarvi at enuottajarvi@sifma.org.
December 3, 2009Lunch and Learn on CDS Clearing Buy-Side Access to Central Counterparties in the CDS Market
Final Information Session Prior to Go-Live
Thursday, December 10, 2009
11:30 a.m. to 2:00 p.m. ET / 120 Broadway, 2nd Floor, New York City
The Asset Management Group of SIFMA is hosting this Lunch and Learn event to discuss the buy side's readiness to begin clearing CDS on central counterparty platforms on 12/15/2009.
The event will discuss the following important buy side topics:
-Documentation
-The various options for segregation of collateral and margin (including considerations for 40-Act funds)
-Portability of positions in case of clearing member default
-Clearing platform pricing and availability of prices (including method and timing)
-Clearing platform procedures for when trades do not clear
-Credit events
-Clearing platform's initial margin calculation, as well as eligible collateral requirements
-Process flow of clearing a CDS transaction
-Reporting
Moderators:
James Wallin, Alliance Bernstein and Joe Sack, SIFMA AMGSpeakers:
- Mazy Dar, ICE
- Bill DeLeon, PIMCO
- Frank DeMaria, MarkitSERV
- Chris Dopp, Eurex
- Ila Eckhoff, BlackRock
- Ben Lis, ICE Link
- Brian Oliver, CME
- David Olsen, JP Morgan Chase
Registration:
$150 for Members of SIFMA, $195 for Non-members. Telephone dial-in available for SIFMA members only for a fee of $35.For more information regarding this event please contact Laura Crispo of SIFMA staff at lcrispo@sifma.org or 212-313-1167.
To register for this event online, please click here.
November 16, 2009Industry's Commitment to Record CDS Trades to a Trade Repository
The OMG committed (as per the 6/2 letter to NY Fed and other regulators) to universally record all electronically eligible CDS trades to a trade depository, and is encouraging all market participants to follow this best practice. DTCC has established a "copper" repository service for submission of non-electronically confirmed CDS trades. Attached please find a letter to industry participants, and a DTCC Deriv/SERV Copper Practical Guide.
To view the industry letter, please click here.
To view the Practical Guide, please click here.
October 29, 2009Corporate Actions Committee sends a Letter to the SEC
The Asset Managers Forum Corporate Actions Committee sent a letter to the SEC to support of the “Issue to Investor: Corporate Actions” initiative, led by DTCC, SWIFT and XBRL US. The Committee states that it supports this initiative because it addresses a common issue that all market participants face, the effective processing of corporate reporting, such as issuer announced corporate actions. To view the letter, please click here.
The best practices white paper, (click here to view white paper) released in 2006 by the AMF Corporate Actions Committee, spells out the need for standardization for interactions within the market place to reduce operational, financial and reputational risk involved in processing corporate actions. The Committee has since worked to create standard templates of several corporate actions types and will continue to support DTCC as it continues to spearhead the effort to standardize more corporate actions types.
The 10/26 letter, which was addressed to Ms. Meredith Cross, Director of the Division of Corporate Finance at the SEC, discusses many issues that would be helped by standardizing issuer announced corporate actions by requiring issuers to use the XBRL language.
October 26, 2009The AMF Chairman's Review
Please click here to read the review by AMF Chair, Steven Chittenden of Loomis Sayles.
September 23, 2009Save-the-Date - October 22, 2009 - AMF Member Meeting
The Asset Managers Forum will host a Member Meeting in New York City on Thursday, October 22nd to offer AMF members the exclusive opportunity to hear about and interactively discuss the current important themes of the asset management industry and asset management operations. The Member Meeting will feature topics that are being formulated at present with legislators, such as the Money Market Reform; as well as discuss the lessons that asset managers have learned one year later after the Lehman collapse.
There is no fee to attend this event because it is offered as a valuable service to AMF members. The AMF Member Meeting is open to members only. Also, before you register, please note that we have established a new cancellation policy.
AMF Members, please click here to register.
For more information about this event, please contact Elisa Nuottajarvi of the AMF staff at enuottajarvi@sifma.org or 212-313-1166.
September 10, 2009Buy Side Access to Derivatives Central Clearings
Presentations on Central Counterparty Provider Updates of Event on Thursday, September 10, 2009
Click here to view the CME Presentation.
Click here to view the Eurex Clearing Presentation.
Click here to view the SwapClear Client Clearing Service Update Presentation.
Click here to view the ICE Global Markets Presentation.
Please click here to listen to the audio recording.
August 18, 2009AMG Lunch and Learn on Current Buy-side Developments
The audio recording of the AMG Lunch and Learn on Current Buy-Side Developments Relating to Credit Default Swaps and Central Clearing is now available on the link below. This Lunch and Learn, which took place on 8/12/2009 covered issues such as the points that were made to the Fed by the industry regarding segregation of initial margin, what steps are being taken by market participants to prepare for Central Clearing, what do industry participants expect from central counterparties and how does the industry's work on CCPs match up with the dialogue in Washington, both on the Hill and with the Administration. The event also covered the potential impact of proposed legislation that recognizes the need for custom derivatives, as well as other proposals which mention mandatory exchange trading and a possible ban on naked CDS purchases by non-dealers. The featured speakers at the event were: Ila Eckhoff, BlackRock; Seth Grosshandler, Esq., Cleary Gottleib; Cory Strupp, SIFMA; and James Wallin, AllianceBernstein (moderator).
Please click here to listen to the audio recording.
July 29, 2009AMG Comment Letter to SEC on Advisers Act Custody Rule
The Asset Management Group of SIFMA sent a comment letter to the SEC on July 28, 2009 on the proposed changes to the Advisers Act Custody Rule. The comment letter can be found by clicking here.
June 25, 2009SIFMA’s Asset Management Group Supports Proposed Retention Requirements
New York, NY, June 25, 2009— The Asset Management Group (AMG) of the Securities Industry and Financial Markets Association (SIFMA) today issued the following statement on the proposed retention requirements in the Obama Administration’s regulatory reform proposal:
“SIFMA’s Asset Management Group supports the administration's proposed requirements for asset originators and transaction sponsors to retain a meaningful economic interest in securitized loans. We believe that retention of such an interest will help to align the incentives of originators and sponsors with securitization investors, thereby helping to restore confidence and functionality to the securitization markets, an essential step in the path to economic recovery and growth.
“Further, AMG agrees with the administration that Federal regulators should be given the authority to design and apply retention requirements in a manner that specifies permissible forms and amounts of retention, how retention requirements may be calculated and measured, the duration of retention requirements, whether and to what extent hedging of retained interests is permissible, and other important implementation details. We would like to suggest that the form of risk retention for various asset classes should be determined through public-private discussion. In this connection, industry and staff representatives of AMG look forward to working directly with policy makers to achieve what we believe are mutual objectives in the interest of the investment community and the clients of asset management firms.”
SIFMA’s AMG represents U.S. asset management firms whose combined assets under management exceed $20 trillion. The clients of AMG member firms include state and local pension funds, universities, and individuals saving for retirement. AMG members conduct their businesses as fiduciaries for their clients even if they are part of a larger financial organization.
June 23, 2009AMF Member Meeting
The Asset Managers Forum is hosting a full day meeting for members on Thursday, July 16th at our new conference center 120 Broadway, 2nd Floor, New York City. In addition to checking out the brand new space, you will have a chance to share ideas and insights with other professionals in the asset management industry.
Set yourself ahead of the pack by participating in this unique event for the buy side where you will obtain information about the following important topics:
The state of the buy-side industry, its future trends and the impacts of upcoming regulatory changes;
Key issues in pricing and valuation;
Insights on sell-side and buy-side operations;
TBA matching and FICC membership for the buy-side;
FICC presentation on mortgage backed securities services;
SIFMA Washington Office on regulatory reform and government programs;
A presentation on same day affirmation.
You will also have a chance to attend one of the following Committees during a breakout session: AMF Derivatives Operations Committee or Asset Manager & Custodian Working Group on TMPG.
Register online now for the Asset Managers Forum Member Meeting, on Thursday, July 16th from 8:30 a.m. to 4:30 p.m. EST. The meeting is open to all AMF members and there is no charge to attend.
Click here to register.
Click here for more information.
For questions regarding the AMF Member Meeting, please contact Diane Trupia of the AMF staff at 212-313-1170 or dtrupia@sifma.org.
June 9, 2009TMPG and SIFMA Finalize Closing Time Practice Recommendations
TMPG and SIFMA announced on May 28, 2009 the final closing time practice recommendation for delivering Fed-wire eligible securities. These updated closing time practices take effect on July 1, 2009. TMPG and SIFMA recommend that, in general, market participants observe 3:00 p.m. EST deadline for origination of deliveries of Fed-wire eligible securities. In addition, some market participants may negotiate bilaterally with some of their counterparties alternative closing time arrangements to originate and receive deliveries with each other up until 3:15 p.m. EST. Each market participant should consult with its custodian or custodians about the cost and complexity of entering into an alternative closing time arrangement.
Announcement: click here. Recommended Closing Time Practices: click here. Frequently Asked Questions: click here. TMPG and SIFMA will host a Lunch and Learn event on Tuesday, June 9, 2009 from 11:30 a.m. to 1:30 p.m. at SIFMA's 120 Broadway, 2nd floor, conference center. The purpose of this event is to describe the closing time practice recommendations and to illustrate the application of these recommendations with hypothetical examples developed by industry practitioners. You may register for this event online at the following link: click here. For more information about this event, please contact Laura Crispo of the AMG staff at 212-313-1167 or lcrispo@sifma.org. The registration fee for this event, which includes a box lunch and hand-out materials, is $90 per attendee. A conference call is available for those outside of New York City for $35.June 1, 2009TMPG Fails Charge Claim Industry Contact List
SIFMA has created for its members an Industry Contact List for the TMPG Fails Charge Claims. This list identifies industry firm representatives responsible for processing TMPG Fails Charge claims. The list contains both buy-side and sell-side contacts, and is available for those firms that contributed their information to the list. If you would like to contribute information to the list or have any questions or comments regarding the Contact List, please contact Elisa Nuottajarvi at enuottajarvi@sifma.org or 212-313-1166 or Brian MacWilliams at bmacwilliams@sifma.org or at 212.313.1127.
April 29, 2009AMF Roundtable Discussion on 3-Way Reconciliation
The Asset Managers Forum is hosting a Roundtable to discuss the challenges and best practice recommendations related to 3-Way Reconciliation on Monday, May 11th from 11:30 a.m. to 1:30 p.m.
Asset managers perform reconciliation to mitigate risks related to inaccurate OTC-derivatives positions, their market values, and related collateral positions. The 3-Way Reconciliation Working Group of the Asset Managers Forum was established because of the need for a standard and automated reconciliation process for asset managers. The working group created the 3-Way OTC Derivatives Reconciliation White Paper that sets forth guidelines so that buy side, sell side, custodians, fund administrators, and prime brokers can be more efficient in risk management and handle higher OTC derivative volumes while maintaining prudent operational controls.
The Roundtable Discussion session will take place from 11:30 a.m. to 12:45 p.m. will cover the following topics:
- The need for reconciliation as a risk management tool
- 3-way reconciliation vs. traditional counterparty reconciliation
- Who are the parties to the process and what are their roles?
- Description of the reconciliation process - asset manager, custodian and dealer perspective
- Challenges related to reconciliation
- Service Agreements (legal liabilities and understanding who is responsible for reporting breaks)
- AMF white paper: What does it cover and recommendations
- Benefits of best practices
- New industry initiatives that may alleviate reconciliation challenges
- What should the industry focus now? Are there some low-hanging fruit?
Vendor solutions presentations will take place from 12:45 p.m. to 1:30 p.m.
Register online now: click here.
The registration fees for this event are as follows: $150 for SIFMA member in person attendee, $190 for non-member in person attendee, and $35 for telephone attendees.
For questions regarding this event, please contact Diane Trupia of the Asset Managers Forum staff at 212-313-1170 or dtrupia@sifma.org.
April 28, 2009News from Lehman Brothers Inc. Trustee
A Protocol Regarding Misdirected Funds was recently approved by the Bankruptcy Court in the liquidation of Lehman Brothers Inc. under the Securities Investor Protection Act. The protocol is posted on the Trustee's website at http://www.lehmantrustee.com.
You can also view the protocol by clicking here.April 27, 2009Asset Managers and Custodians Agree on Procedures to Implement TMPG Fail Charge Recommendation
Approximately 125 asset management firms, custodians and vendors attended an AMG-sponsored event yesterday to discuss the buy-side's procedures to implement a new fail charge in the Treasury securities market. This recommendation will be effective as of May 1, 2009. Those in attendance at the AMG meeting were generally in agreement that this recommendation of the Treasury Market Practices Group can be expected to be implemented efficiently next month.
The firms that were in agreement at yesterday's meeting heard from Tom Wipf of Morgan Stanley who serves as Chair of TMPG. Mr. Wipf assured the industry that TMPG will monitor implementation of the new fail charge recommendation and will be responsive to any questions that arise. In addition to Tom Wipf, speakers at yesterday's event also included:
- Marcellus Fisher, PIMCO
- Louis Nazzaro, J.P. Morgan Chase
- Paul Parseghian, Prudential Investment Management
- Joe Sack, SIFMA
- Ray Tyrrell, Brown Brothers Harriman.
To listen to a replay of yesterday's event on the TMPG recommendation, please click here.
Fails Charge Market Practice: Asset Management and Custodian Industry Procedures click here.
April 23, 2009TMPG Fails Charge - Industry Procedures for Asset Managers and Custodians
The Treasury Market Practices Group (TMPG) has recommended a new market practice to charge a fee for settlement fails in U.S. Treasury securities. SIFMA Asset Management Group and the Asset Managers Forum created a working group for custodians and asset managers to help implement the TMPG fails charge market practice which goes into effect on May 1, 2009. The working group created a document "Asset Management and Custodian Industry Procedures" that describes the work flows of various parties relating to fails, delineates responsibilities, and addresses many issues regarding the claims process. For more information relating to this initiative, please contact Elisa Nuottajarvi of the AMF staff at 212-313-1166 or enuottajarvi@sifma.org.
Fails Charge Market Practice: Asset Management and Custodian Industry Procedures click here.
April 1, 2009Updated TMPG Documents
The Treasury Market Practices Group (TMPG) released on 3/31 three revised documents incorporating the updates to its fails charge recommendation announced on Monday, March 30, 2009. Please click on the links below to view the updated Fails Charge Trading Practice, Frequently Asked Questions, and Treasury Market Best Practices documents.
To view the Fails Charge Trading Practice click here.
To view Frequently Asked Questions click here.
To view Treasury Market Best Practices click here.
March 31, 2009 Treasury's Rules of the Road for Regulatory Reform
Please click here for a copy of the Davis Polk memorandum entitled Treasury's Rules of the Road for Regulatory Reform. This memorandum describes Treasury's framework for regulatory reform, issued on March 26, 2009, focusing on the comparatively more detailed proposals for addressing systemic risk. Treasury has proposed, among other things, the regulation of: "systemically important" firms; private funds; CDS and other OTC derivatives; and money market funds. Treasury's proposals in these areas are discussed and issues are set forth that the government and private sector may consider as details of the proposals are debated and further developed.
Treasury's Proposed Resolution Authority for Systemically Significant Financial Companies
Please click here for a copy of the Davis Polk memorandum entitled Treasury's Proposed Resolution Authority for Systemically Significant Financial Companies, a companion piece to Treasury’s Rules of the Road for Regulatory Reform. As a result of the potential for disruption under current laws if a systemically important financial group were to enter bankruptcy proceedings during the current financial crisis, Treasury recently asked for a unified federal resolution authority over all systemically significant financial companies. The legislation was proposed as part of a larger Treasury framework for regulatory reform. This memorandum analyzes the key provisions of Treasury’s proposed legislation, compares it to the specialized FDIA regime on which it is modeled and to certain provisions of the Bankruptcy Code that it would replace, and identifies some of the most important policy and technical issues raised by the proposal.
March 30, 2009 TMPG Announcement
The Treasury Market Practices Group (TMPG) today announced two updates to its fails charge recommendation. These include (1) the incorporation of a minimum threshold for fails charges and (2) support for the billing of claims on a one-time basis tied to the date when a transaction actually settles. In addition, the TMPG issued a clarification regarding the reference rate used to calculate fails charges.
Please click here to view the announcement.
March 20, 2009 CDS Central Counterparty Update - Lunch & Learn
Audio Recording Available Here!
On March 20th, AMG and MFA co-sponsored a Lunch and Learn titled: Update on CDS Central Counterparty Proposals for Asset Managers and Hedge Funds. This event reviewed the basic framework of CCPs, discussed the benefits of a clearinghouse environment in the OTC derivative markets, described why asset managers and hedge funds intend to segregate customers' collateral when dealing with a CCP, and offered insights regarding legislative and regulatory developments that might affect the structure of CCPs. This educational event also featured audience Q & A.
The panelists of this event were:
-James Wallin – AllianceBernstein (Co-moderator)
-Joseph W. Sack – Securities Industry and Financial Markets Association (Co-moderator)
-Mazy Dar – Creditex Group, Inc.
-Arthur Leiz – Goldman Sachs Asset Management
-Chip Stevens – Barclays Global Investors
-Cory Strupp – Securities Industry and Financial Markets Association
-Kimberly Taylor – CME Group
-Marshall Terry – Brevan Howard
For any questions regarding this initiative, please contact Elisa Nuottajarvi or Joe Sack of the AMG/AMF staff.
February 12, 2009 TMPG Fail Penalty - Custodian / Asset Manager Working Group
The Treasury Market Practices Group (TMPG) has recommended that a charge for settlement fails in U.S. Treasury securities be adopted as a standard market practice. The Asset Managers Forum has created a working group for custodians and asset managers to discuss how they can address the TMPG fail penalty which goes into effect on May 1, 2009. The working group will analyze work flows of various parties relating to fails, delineate responsibilities and issues regarding the claims process and possibly recommend an industry-wide solution. If you would like to participate in the AMF Custodian / Asset Manager working group, please contact Diane Trupia of the AMF staff at 212-313-1170 or dtrupia@sifma.org.
More information on the TMPG Fail Penalty:
Click here to read the TMPG Frequently Asked Questions (February 2, 2009).
Click here to read the TMPG Fails Charge Trading Practice (January 15, 2009).
Click here to read the TMPG Treasury Fail Penalty Conference Video Jerry Pucci, BlackRock (January 8, 2009).
Click here to read the TMPG Claiming a Fails Charge (January 5, 2009).
Click here to read the TMPG Timeline (January 5, 2009).
Click here to read the TMPG Announcement (November 12, 2008).
Charge Date for Section 31 Fee Rate
Equities: Trade Date Effective Tuesday April 7, 2009
Settlement Date Effective Monday, April 13, 2009
Options: Trade Date Effective Thursday April 9, 2009
Settlement Date Effective Monday, April 13, 2009
Twice a year the Securities and Exchange Commission (SEC) issues a bulletin advising the industry of any rate changes to the Section 31 fee rate. The fee rate changes are made as of a certain effective date, which is specified in the bulletin. This effective date refers to the charge date for fees charged under Section 31 of the Securities Exchange Act, which defines the charge date as the settlement date for most transactions. Although firms may have been using the trade date rather than the settlement date to determine the applicable Section 31 fee for transactions, firms need to review their procedures and make sure that they are using the settlement date to calculate the fees in the future. The SEC has announced Friday, April 10, 2009 as the effective date for the next rate change. The rate is changing from $5.60 per million principal to $25.70 per million principal. Please see the SEC Fee Rate Advisory #5 for further information. In order to ensure that transactions and fees are synchronized, the industry is targeting the effective trade dates of Tuesday April 7, 2009 for regular way equities (this includes the equity portion of exercise and assignment activity) and Thursday April 9, 2009 for regular way options as the first date for firms to make any necessary changes to their procedures to ensure that they are using the correct effective settlement date mentioned above to calculate the applicable fees under Section 31. (Please note that trades on shortened settlement and “as of” trades may be different.)
Any questions or concerns regarding this change can be directed to Sal Marra, NYFIX at (646) 525-3184 or salvatore.marra@nyfix.com, or Anthony Principato, Goldman Sachs Execution & Clearing at (212) 357-8015 or anthony.principato @gs.com.
January 8, 2009 AMG's Guiding Principles for Loan Modification Programs
On December 31, 2008, SIFMA's asset management member firms formulated a set of policy positions concerning loan modifications relating to residential mortgage-backed securities. The Guiding Principles for Loan Modification Programs (the " Guiding Principles" ) were adopted by the Advocacy Committee of the Asset Management Group (AMG) of SIFMA. The AMG is comprised of the leading firms in the asset management industry, including 18 of the top 20 firms based on assets under management (AUM). AMG member firms manage the pension, IRA, mutual fund, or personal investments for more than 112 million American workers and retirees.
AMG's Guiding Principles were developed in coordination with the industry leadership of investor participants in the American Securitization Forum.
Along with other asset classes, asset management firms, as financial advisers, manage mortgage securities investments for investors. Thus, AMG wholeheartedly endorses a diligent method of underwriting loan modifications, coupled with innovative principal forbearance structures, and believes that such an approach can benefit homeowners and improve performance for investors.
AMG's Guiding Principles are currently comprised of 13 specific recommendations, including a suggestion that loan modification programs establish reasonable monthly payments using justifiable debt-to-income (DTI) and loan-to-value (LTV) ratios. The Guiding Principles also state that the best way to achieve large scale loan modifications is to use TARP as originally intended; that is, to purchase or insure troubled loans.
The AMG further suggests in its Guiding Principles that streamlined loan modifications should only be made for occupied primary residences and that loan modification programs should address re-default risk and include a process to resolve issues raised by second liens on homeowners' properties.
The asset management industry is committed to supporting viable housing industry solutions, as underscored in a Guiding Principles recommendation that supports incentives for borrowers experiencing hardship to work cooperatively with loan servicers.
Finally, the Guiding Principles document recommends transparent loan modification programs that would provide full details of modifications to security holders.
Click here to view AMG's Guiding Principles for Loan Modification Programs.
Any suggestions or questions concerning AMG's Guiding Principles for Loan Modification Programs may be directed to Joseph W. Sack, Managing Director of SIFMA, at 212-313-1165 or jsack@sifma.org.
December 4, 2008 MBS Netting
The Asset Management Group & FICC have announced a meeting to discuss asset manager participation in the MBS netting process and membership in the FICC. This meeting will take place on Tuesday, December 16, 2008, from 11:00 a.m. to 12:30* pm ET. There will be a presentation by the DTCC Fixed Income Clearing Corporation on how asset managers can increase operational efficiency, reduce risk and lower cost by using the mortgage backed clearing services of the FICC. The presentation will cover the plan to utilize the central counterparty model for MBS and how asset managers can participate in the netting process and benefit from the CCP. After the presentation, there will be time for questions and discussion so that asset managers can share their viewpoints and ask pertinent questions relating to buy side access and membership in the FICC and other possible methods of reducing risk and making TBA trade processing more efficient. To participate in this event, you must contact Laura Crispo at lcrispo@sifma.org or 212-313-1167. A conference call number is available for those outside of New York City. For any questions regarding this event, please contact Elisa Nuottajarvi at enuottajarvi@sifma.org or 212-313-1166.
November 7, 2008 AMF Workshop & Exhibit-Custodian Summit on January 20, 2009
Asset management firms rely on custodians to perform many core functions critical to ensuring efficient and secure operations of the asset management industry. Especially during these times of market contraction as asset managers tackle many difficult issues, it is essential that asset managers get the most out of their custodian relationships and can work together in a way that reduces risks and minimizes processing hurdles. The Custodian Summit is designed to give both asset managers and custodians a voice in discussing how to improve service of their clients while reducing risk.
For the full agenda, please click here.
To reserve a seat, register online now.
For more information regarding this event, please contact Diane Trupia of The Asset Managers Forum at 212-313-1170.
November 5, 2008 AMF Operations Update
1) FICC Resources for TBAs
After the bankruptcy of Lehman Brothers, asset managers would like to explore the possible utilization of FICC to reduce risk and protect against the failure of a counterparty. The AMG/AMF is arranging for the FICC to meet with asset managers to discuss the FICC’s planned central counterparty and guaranteed delivery structure for mortgage backed securities. The AMF will advise the members of the presentation dates in Boston and New York.
Click here for document
2) Master Securities Forward Transaction Agreement
The bankruptcy of Lehman Brothers has demonstrated the need for asset managers to re-assess their risks when executing forward delivery transactions. SIFMA developed the Master Securities Forward Transaction Agreement to be executed between counterparties to set forth their mutual responsibilities for collateralizing exposure and handling events of default including bankruptcy. The AMF is planning a meeting for interested members to discuss this agreement and how it may protect clients.
Click here for document.
3) SEC Hard Delivery Rules (Rule 204T) for Equity Fails
Within the recently amended Short Sale rules (SHO) the SEC implemented Rule 204T permitting the buy-in of all equity fails after settlement date. The Rule states “Pursuant to that emergency order we (SEC) imposed enhanced delivery requirements on sales of all equity securities by adding and making immediately effective a temporary rule Regulation SHO, Rule 204T. To further our goal of preventing substantial disruption in the securities markets, we are adopting Rule 204T as an interim final temporary rule, with some modifications to address operational and technical concerns resulting from the requirements of the temporary rule as adopted in the September Emergency Order. We intend that the temporary rule will address potentially abusive “naked” short selling by requiring that securities be purchased or borrowed to close out any fail to deliver position in an equity security by no later than the beginning of regular trading hours on the settlement day following the date on which the fail to deliver position occurred. This temporary rule should provide a powerful disincentive to those who might otherwise engage in potentially abusive “naked” short selling.”
Please note that asset managers and other market participants are welcomed to submit comments to the SEC proposed SHO rule on or before December 16, 2008 (see page 61706 in the Federal Register on October 17, 2008 for instructions on the methods to submit comments).
Click here for document
4) Treasury Fail Problems
The Treasury Market Practice Group (TMPG) is meeting at the behest of the US Treasury and the NY Fed to review and recommend solutions to the high fail rates on Treasury securities resulting from the unprecedented flight to quality occurring during the credit crunch and current market turmoil. At this time, there are no specific recommendations that are finalized. The good news is that the fail situation is ameliorating but it is still excessive relative to normal trading activities. The AMF will keep you apprized of developments.
5) OTC Derivatives Central Counterparty Proposals for CDS
Several parties, including CME/Citadel, ICE/The Clearing Corporation, NYSE/Euronext and possibly others, have announced plans to operate as a central clearinghouse for the CDS market. The AMF will provide information concerning the developments for the central counterparty for CDS as these plans are unfolded. For additional information, please contact the staff below.
6) OTC Derivative Audit Confirmation Paper
The AMF is soliciting comments through November 12th to the Audit Confirmation Initiative document describing the current audit confirmation challenges and recommended steps to alleviate the manual and paper intensive process involved in providing confirmations to auditors by adopting the electronic record-keeping services available for CDS and IRS.
Click here for document.
Please forward questions in connection with any of the above items to the AMF staff:
Elisa Nuottajarvi tel. 212-313-1166
George Reis tel. 212-313-1180
Joseph Sack tel. 212-313-1165
Douglas Taggart tel. 212-313-1173
Diane Trupia tel. 212-313-1170
October 9, 2008 Specified Trades Protocol 08-02 (Schedules A, B, C Attached)
Protocol 08-02 relates to terminating certain specified and allocated trades done with Lehman Brothers in connection with mortgage-backed securities, which are known as “pool” trades. A SIPC Trustee was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. The SIPC trustee issued a statement on September 26, 2008 which states, “Counterparties with securities and commodity transactions with Lehman Brothers Inc. may close them out and submit claims to the Trustee.”
Click here to download Protocol 08-02
Click here to download Schedules A, B & C
This Protocol, which applies to non-FICC MBSD members, addresses the process for terminating such outstanding trades that were effected by asset managers with Lehman Brothers. The SIPC Trustee has cooperated in the development and has approved this industry Protocol. SIFMA appreciates the assistance and cooperation of its members, especially the input of members of the Association’s Asset Management Group, with respect to the process of identifying the essential components of Protocol 08-02. Although SIFMA may not provide legal advice, questions concerning the implementation of Protocol 08-02 may be directed to Douglas Taggart, Manager, Asset Management Group of SIFMA, at 212-313-1173 or dtaggart@sifma.org.
This Protocol is voluntary and non-FICC MBSD member firms are not required to follow this Protocol. This Protocol is only intended to provide a uniform process for resolving the specified trades and does not modify any existing right or obligation under any preexisting contracts. Firms should seek advice of counsel with respect to their rights or obligations in connection with the specified trades.
October 8, 2008 News on AMF October Events
The Asset Managers Forum strives to provide our members events that relate to market conditions and focus on current challenges of the asset management industry. Due to the current market situation the Custodian Summit has been rescheduled to January 20, 2009. The AMF Member Meeting on October 22nd has been re-engineered to focus exclusively on the challenges that asset managers are facing right now as a result of the recent market events. The Member Meeting will offer valuable insights on how asset managers are coping with operational hurdles stemming from the Lehman situation, what has been the industry’s response and what are the lessons learned for individual firms as well as the asset management industry at large. The Member Meeting will commence at 8:30 am and end at 1:00 p.m. There is no charge for this event. The agenda will be distributed shortly. To reserve a seat please register here.
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170 or dtrupia@sifma.org.
October 7,2008 Protocol Of The Lehman Brothers Inc. Trustee Regarding Prime Brokerage Arrangements & Other Broker-Dealer Transactions
The above-mentioned Protocol was developed by the SIPC Trustee who was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. This Protocol addresses prime brokerage arrangements and other broker-dealer transactions.
This Protocol is voluntary and member firms of SIFMA are not required to follow this Protocol. This Protocol is only intended to provide a uniform process for resolving prime brokerage arrangements and other broker-dealer transactions and does not modify any existing right or obligation under any preexisting arrangements.
Firms should seek advice of counsel with respect to their rights or obligations in connection with this matter. Although SIFMA may not provide legal advice, questions concerning the posting by SIFMA of this Protocol may be directed to Joseph Sack, Managing Director, The Asset Managers Forum, at 212-313-1165 or jsack@sifma.org.
October 7, 2008 Protocol 08-01 Issued by SIFMA’s Asset Management Group/ Contact Information Concerning Schedule A or B Extension Requests
AMG Protocol 08-01 was developed by SIFMA’s Asset Management Group and the SIPC Trustee who was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. This voluntary Protocol, which is for non-FICC MBSD members, addresses the process for terminating certain forward settling trades affected by asset managers with Lehman Brothers in connection with mortgage-backed securities (“TBA trades”).
Schedules A and B that are part of the above-referenced Protocol are documents that under certain circumstances might be required to be submitted to the SIPC Trustee within ten (10) business days of the termination of TBA trades by users of the Protocol. In connection with the responsibility to submit Schedule A or B information within ten (10) business days, as suggested in the Protocol, SIFMA hereby informs its membership and other interested industry members that any request for an extension in order to fulfill this responsibility may be submitted via e-mail to the following address: termini@hugheshubbard.com.
We appreciate your interest in this matter. Firms should seek advice of counsel with respect to their rights or obligations in connection with TBA trades. Questions regarding this 10/7/08 SIFMA notice may be directed to Elisa Nuottajarvi of the SIFMA staff at 212-313-1166.
September 25, 2008 Protocol 08-01 ISSUED BY SIFMA’S ASSET MANAGEMENT GROUP
AMG Protocol 08-01 was developed by SIFMA’s Asset Management Group and the SIPC Trustee who was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. This Protocol, which is for non-FICC MBSD members, addresses the process for terminating certain forward settling trades effected by asset managers with Lehman Brothers in connection with mortgage-backed securities (“TBA trades”).
This Protocol is voluntary and non-FICC MBSD member firms are not required to follow this Protocol. This Protocol is only intended to provide a uniform process for resolving the TBA trades and does not not modify any existing right or obligation under any preexisting contracts.
Firms should seek advice of counsel with respect to their rights or obligations in connection with the TBA trades.
SIFMA appreciates the assistance and cooperation of its members, especially the input of members of the Association’s Asset Management Group, with respect to the process of identifying the essential components of Protocol 08-01. SIPC and the SIPC Trustee have also cooperated in the development of this industry Protocol.
Although SIFMA may not provide legal advice, questions concerning the implementation of Protocol 08-01 may be directed to Elisa Nuottajarvi, Manager, The Asset Managers Forum, at 212-313-1166 or enuottajarvi@sifma.org.
As a follow-up to SIFMA’s liaison with the SIPC Trustee, we are pleased to post the following links to protocols recently announced by the SIPC Trustee. These protocols are voluntary and AMG member firms are not required to follow them.
Protocol: Lehman Brothers Inc. Prime Brokerage Arrangements
Protocol: Lehman Brothers Inc. Outstanding Securities and Commodities Transactions
September 25, 2008 AMF Member Meeting 10/22
The Asset Managers Forum is hosting a Member Meeting on October 22. At this meeting AMF members have the opportunity to discuss challenges created by current market conditions. There will also be updates of the AMF committees and working groups, as well as a discussion on outsourcing.
Click here for the agenda.
September 19, 2008 AMF Workshop - Custodian Summit on October 21, 2008
This Workshop will focus on the custodian - asset manager affiliation. The investment management servicing model is changing as asset managers' investment strategies are expanding to include OTC derivatives and other new asset classes, and as the plan sponsors demand ever-more sophisticated services and reports. This change is apparent in the operations area as systems and resources are being upgraded to provide services. Attend this Custodian Summit to get the full picture of the challenges involved and the proposed solutions.
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
July 21, 2008 New Documents To Be Released at Derivatives Service Providers Roundable on July 22, 2008
On Tuesday, July 22, 2008, the AMF will release a Frequently Asked Questions brochure (left) on credit derivatives processing standards for industry members. This FAQ brochure will explain the industry's credit derivative processing goals and provide information on the Trade Information Warehouse, various service providers and the new electronic notation requirements. Additionally, a Handbook (right) has been developed that includes profiles of 35 OTC derivatives service providers. This project was undertaken specifically to raise the awareness of the asset management industry on the services available and to help them navigate through multiple service options to meet their derivatives processing goals
July 7, 2008 Derivatives Service Providers Roundtable on July 22, 2008
The industry has committed to modernizing derivatives processing methods and SIFMA, ISDA® and MFA have joined forces in an effort to socialize these commitments. Service providers play a critical role by rendering the services that enable buy side firms to achieve their processing commitments. In recognition of this role, SIFMA, together with the other trade groups, is sponsoring a Derivatives Service Providers Roundtable and Exposition on July 22, 2008, from 9 a.m. to 1 p.m. This event will take place in New York City, at the SIFMA midtown Manhattan offices located at 360 Madison Avenue. There is no registration fee for this event. Attendees may participate in person or via conference call (limit of 2 in-person attendees per firm.)
Click here to register
Panel topics will include:
Electronic Confirmations
What exists and what is ahead? Panelists will discuss what the buy side should know about on-boarding new products to electronic confirmation services and will address the process of back-loading trades. Frank De Maria, COO of DerivSERV, will lead this presentation.
Allocations
The industry's goal is to send allocations on trade date. This panel, which will be moderated by James Wallin of AllianceBernstein, will discuss how the buy side can send electronic allocations, which is the key to timely turnaround by the sell side.
Novations
The industry has committed to upgrading to automated novation processing this year. During this panel, learn about the various options and how the buy side can implement a cost-efficient solution with ease and confidence. Bloomberg, Deriv/SERV, MarketAxess, MarkitWire, OpenLink, SimCorp, TradeWeb and T-Zero will be participants.
Going Beyond Electronic Confirmation and Affirmation
Since the industry has set submission, matching and accuracy targets, this panel will address 1) how the buy side can achieve these targets and 2) how the buy side can leverage order management systems to help meet its goals.
This event is intended for industry members and is not open to the press.
For more information, please contact Elisa Nuottajarvi.
June 18, 2008 AMF Corporate Actions Committee Update
The AMF Corporate Actions Committee is working on templates to help the securities industry to agree on which information should be included in corporate actions announcements and which format the information should be in. This will reduce the risk of misinterpretation, and enable automation and standardization making the corporate actions process more efficient. DTCC has helped the industry by compiling templates from various sources, beginning with the AMF templates, thus creating a master template to ensure that data elements are consistent and harmonized. This DRAFT spreadsheet includes the following templates: Dividend reinvestment, Dividend with currency option, Dutch auction, Merger, Rights distribution, Rights subscription, Tender, Stock/Cash optional dividend.
The templates DRAFT is available here.
Please contact Elisa Nuottajarvi of the Asset Managers Forum staff with any questions regarding this initiative.
June 12, 2008 —Industry Event on Derivatives Initiatives
SIFMA’s Asset Management Group, ISDA® and Managed Funds Association are providing education and raising awareness on the industry’s derivatives processing goals, which were outlined in a letter to the NY Federal Reserve in March 2008. The three trade associations hosted a live session on June 5, 2008, that addressed operational enhancements in the credit derivatives market.
Click here to listen to an audio replay of the June 5th Event.
Please note that this audio replay is for industry members and is not open to members of the press. To request a password, please contact Elisa Nuottajarvi.
May 20, 2008 Collateral Management White Paper
The AMF Collateral Management Working Group has drafted guidelines relating to collateral activities, which are put forth in the Collateral Management White Paper. The White Paper is being distributed to the buyside and custodian members of the Asset Managers Forum for comments which are due on July 31, 2008. Any comments and/or questions regarding the collateral management initiative or the white paper should be directed to Elisa Nuottajarvi of the AMF staff at enuottajarvi@sifma.org.
May 19, 2008 AMF Workshop July 28, 2008: Managing Operational Risk in Today’s Environment
As the title states, this Workshop will discuss managing operational risk in today’s environment. We invite you to discuss, with your industry peers, operational risk management practices and ways to quantify them through metrics. We will discuss how firms compare procedures and will share information on benchmarking. The Workshop will include a panel discussing risks associated with 130/30 strategies, especially as it relates to 40-Act funds, and how to reduce risk on managing collateral, 3-way reconciliations and cash movements. We will discuss risk on subprime instruments as well. There will also be a panel on data, including discussion on data feeds, security set-ups, trading related data and audits/controls related to data. Other topics covered during this one day event on operational risk are ops risk function in an organization and Basel II capital requirements.
Click here to register.
For questions regarding this Workshop and for Sponsorship Opportunities, please contact Diane Trupia of the AMF staff at 212-313-1170.
May 14, 2008 OTC Derivatives Market - Vendor Profiles
As an important part of the derivatives processing initiative, the AMF is soliciting product/service profiles from vendors in the OTC Derivatives markets in order to educate asset management firms on the many available options to automate the processing of OTC derivative transactions as well as position reconciliations, novations and other processing aspects. For more information click here.
March 27, 2008 — OMG Letter to the Federal Reserve on Credit and Equity Derivatives
The Operations Management Group submitted today a letter to the Federal Reserve Bank of New York, which outlines its commitments to improve credit and equity derivatives processing. In the letter, the OMG commits to:
improve levels of timeliness and accuracy in the immediate post-trade process
automate novations processing by the end of 2008
universal use of standard reference data and,
full implementation of centralized settlement among major dealers by September 2008.
Asset managers commit to helping the process by submitting correct allocations on trade date.
Click here to read the OMG Letter to the NY Fed
Click here to read the Fed’s Press Release
Click here to read SIFMA’s Press Release
These topics will be among several items discussed at the next AMF Derivatives Ops Meeting on Tuesday, April 22, 2008.
March 18, 2008 — Omgeo No-Action Letter re: Electronic Trade Confirmations
Omgeo received a “no-action” letter from the Securities Exchange Commission under Exchange Rule 10b-10(a). Specifically, Omgeo’s Broker-Dealer participants can rely on TradeSuite to satisfy their confirmation delivery obligations to Customers under Rule 10b-10(a) where the disclosures customarily on the back of the paper confirmations are provided electronically.
When Omgeo implements this service, asset managers can elect to receive only electronic confirmations and avoid receiving paper confirmations. Please review the SEC’s letter for more information.
Click here to view Omgeo’s Request for Relief Pursuant to Rule 10b-10(f)
March 11, 2008 — Standard Fail Report White Paper
After a thorough review process, the AMF is pleased to announce the publication of its Standard Fail Report White Paper. The White Paper was officially published and promulgated at the AMF Member Meeting on Thursday, February 28, 2008, in New York City. The White Paper recommends the usage of an industry standard fail report and discusses the benefits of using a standard.
Click here to view the Standard Fail Report White Paper
Click here to view the Standard Fail Report Sample Template
March 11, 2008 Overdrafts Guidelines Open for Comment
After extensive work, the Overdraft Working Group is releasing for public comment, “Guidelines Relating to Overdrafts." The AMF is seeking comments on the exposure draft from managers, custodians and other industry participants, which should be submitted to the AMF by April 30, 2008.
Click here to view the AMF's "Guidelines Relating to Overdrafts"
Click here to write and submit your comments to the AMF
February 28, 2008 — AMF Member Meeting
Join your fellow AMF members for progress reports and discussion on creating best practices in topics including Overdrafts, Corporate Actions, Collateral Management, Derivatives Operations, STP and Fails.
The AMF Member Meeting will also feature a panel exploring methods for implementing industry best practices. The panel will discuss how AMF members can get the most out of their membership commitment and translate that commitment into tangible business results.
This meeting is open for AMF Members and Associate Members only. Ensure a seat by registering online.
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
February 27, 2008 — AMF Derivatives Workshop
Come to the Asset Managers Forum Derivatives Workshop to learn about the most recent developments in the Derivatives operations landscape. The workshop will begin with a summary of the reasons why asset managers are increasingly using derivatives in investment portfolios, and what type of operational hurdles are involved; we will then take a look at the overall derivatives processing landscape and current improvement initiatives; discuss what service providers have to offer for derivatives operations; as well as discuss issues such as 3-way reconciliation, valuation and pricing practices; and collateral management.
The cost of this workshop is $795 for members and $995 for non-members.
Seats are limited so please sign up quickly!
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
February 1, 2008 — Information Session on the Trade Information Warehouse for Derivatives
The Asset Managers Forum hosted a conference call on January 23 to update its members on the Trade Information Warehouse progress in 2007 and plans for 2008. Frank DeMaria and Marisol Collazo of DTCC reviewed the accomplishments during the past year including, implementing settlement services through CLS and piloting an improved novation protocol. A summary of planed initiatives for 2008 is included in a PowerPoint (link provided below). The AMF agreed to form a new Working Group of asset managers and custodians under its Derivatives Operations Committee to work to promote the efficient backloading of trades among the buy side and to encourage custodians to use the Warehouse for reconciliation and payments. The AMF will host additional buy side and custodian information sessions on industry advancements in derivatives processing throughout 2008. For additional information on the 1/23/08 Information Session, please click on two links to the conference call presentations.
Payment Calculations & Settlement Processing
February 1, 2008 — AMF Presents at Operations Meeting
The Asset Managers Forum participated in the SIFMA Operations Committee Offsite Meeting on January 30 & 31. At the meeting, AMF Steering Committee member & Treasurer, Steve Chittenden of Loomis Sayles and staff provided an updated on the six major buy side operations initiatives which include:
-- derivatives processing
-- corporate actions
-- collateral management
-- standardized fail reporting
-- overdrafts prevention and resolution
-- enhancing STP
The major follow-up items for AMF include:
-- continuing to work with the Corporate Actions Division on U.S., then global, corporate actions processing matters
-- presenting the finalized Standard Fail Report to the Operations Committee
-- continuing to support industry efforts to eliminate paper confirms
-- updating the Operations Committee on buy side and custodian derivatives processing matters at a future meeting
The AMF appreciates the opportunity to meet with the SIFMA Operations Committee and looks forward to continuing the dialogue at future meetings. Norman Eaker of Edward Jones serves as Chair of the Operations Committee. Lisa Ilaria of New York Life Investment Management serves as Chair of The Asset Managers Forum.
January 23, 2008 at 11:00 a.m. — AMF Industry-wide call-in: Update from Deriv/SERV/TIW
The call will explain the new services and enhancements planned for 2008. Also, the presentation will cover issues such as trade backloading into the Trade Information Warehouse, what’s new for matching and confirmation, and how can asset managers and custodians start using the payment reconciliation service of Deriv/SERV.
Register now for this informative session. There is no charge for this event.
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
Click here to view AMF Vendor Profiles
If there are additional vendors with products in this sector, please contact George Reis at 212.313.1180 for inclusion in this profile project.
Virtual Vendors Exhibit Hall
