"New Developments" Issue of the Weekly Report

The Asset Managers Division of The Bond Market Association is pleased to issue this Weekly Report on new developments that have a bearing on the business activities of asset managers. The items below describe developments concerning:



Please review these items and contact Joseph Sack, Douglas Taggart, or Elisa Nuottajarvi of The Bond Market Association at 646.637.9200 for additional information or questions.


New Developments Concerning Derivatives

The Asset Managers Division participated in a global call-in on Wednesday, March 8th, concerning developments relating to the processing infrastructure of credit default swaps. This milestone marks the begining of the implementation of a longer term solution which focuses on centralized trade information. Accordingly, the AMD will continue to be a participant in the process and will continue to report on the development of credit default swaps.


The following links provide access to:


The Major Dealers' March 10 letter to Timothy F. Geithner, President and Chief Executive Officer of the Federal Reserve Bank of New York.


The Federal Reserve Bank of New York's press release commending the efforts to-date of the Major Dealers


A statement by Micah S. Green, President & CEO of the Bond Market Association


The Bond Market Association's March 8 global call-in which includes a link to an audio recording of the event (AMD Weekly Report, March 10, 2006)


In the Major Dealers' letter to the Federal Reserve Bank, they indicated that their group will continue the dialogue with investors through the Asset Managers Division of The Bond Market Association and other organizations. The AMD is pleased to be engaged and is encouraged by the dialogue with the Major Dealers on this market practice initiative.


New Developments Concerning TRACE Reporting

On March 1, 2006, NASD announced that TRACE plans to disclose additional trade information on corporate bonds. Specifically, the reporting engine will indicate whether the reporting party is "buying" or "selling" the securities and whether their counterparty is a "broker/dealer" or a "customer."


The Asset Managers Division will analyze this latest NASD proposal based on a careful consideration of all the relevant facts and issues.


Click here to read the NASD announcement on new plans for TRACE reporting


New Developments Concerning Proposed Netting Facility - 3/27 Call-in

At the March Steering Committee Meeting of the AMF, a representative from the Emerging Markets Trade Association ("EMTA") announced that it is proposing to sponsor a Multilateral Netting Facility to address the longstanding backlog in the settlement of transactions in Venezuela Oil Obligations entered into before January 2, 2002. The Facility, which will be cash-settled at a settlement price to be determined on the basis of a polling of all participating firms, is expected to be completed before June 30, 2006.


A special conference call has been scheduled for Monday, March 27 at 3 p.m. EST to discuss the involvement of the asset management community. Specifically, the conference call will address:


1. The background of the current warrant fails problem

2. Internal and External Reconciliation of Warrant Positions and Payments relating thereto

3. Multilateral Netting / What constitutes critical mass for this process?


Click here for additional details on EMTA's proposed Multilateral Netting Facility


The call-in details are as follows:


Date: Monday, March 27, 2006

Time: 3 p.m. EST

Call-in: 1-800-283-1476

Confirmation: 875-350


Aviva Werner, Senior Legal Counsel of EMTA, will be a presenter during the conference call. Please email Diane Trupia to confirm your participation in this conference call.