AMD Meets with Major Dealers
On Wednesday, February 1, 2006, the Market Practices and Standards Subcommittee of the Asset Managers Division met with the Major Dealers to discuss the dealer's 2006 proposal relating to the credit default swap market. The dealers presented their draft proposal for discussion which included targeted industry best practice guidelines and steps to reduce the confirmation backlog. Members of the AMD Subcommittee offered dealers input and feedback on their proposal from the buy side perspective. The dealers also committed to continuing the on-going dialogue in order to achieve their goals by year-end. Regarding longer-term swaps goals, it is very likely that certain subcommittee members will be requested by DTCC to participate in an effort which will lead to the creation of an electronic utility solution on CDS processing data. We expect to provide additional information relating to this solution next week.
AMD Comments on Proposed Changes to Municipal Derivative Rating Process
On January 31, 2006 The Bond Market Association submitted a comment letter to S&P on their proposed criteria revisions to their Debt Derivative Profile Scores. Because this matter affects the interests of asset management firms, members of the Asset Managers Division offered their comments through this letter. Specifically, the comment letter encourages S&P to eliminate the numeric DDP scoring system in favor of a narrative-based system.
Click here to read comment letter
Click here to read S&P Proposal