AMD Members Meet with Members of Congress on Pension Reform
On March 30th, as a result of the efforts the Washington Office of the Association, three AMD members met with a Member of the House of Representatives and two U.S. Senators concerning the benefits to pension plans of approving cross trading as an acceptable industry practice. AMD favors, subject to fiduciary duties, allowing an asset manager to effect trades between pension accounts that qualify as sophisticated investors. This matter is under consideration as part of Congress' consideration of broad legislation designed to achieve pension reform in the U.S.
For further information, please contact Michael Williams, Vice President of Legislative Affairs at The Bond Market Association at 202.434.8400 or at mwilliams@bondmarkets.com.
AMD Meeting on Commodity Index Swaps
On Monday, April 3, 2006, the AMD Executive Committee and the AMD Advocacy Initiatives Subcommittee will meet to discuss Commodity Index Swaps. Monday's discussion will focus on recent meetings with Capitol Hill staff regarding the IRS Revenue Ruling 2006-1 and the current legislative and regulatory strategy to modify the Revenue Ruling. The current Revenue Ruling would essentially prevent mutual funds from investing in the commodity index swaps because the income from the swap would not be categorized as "qualified income". The AMD has explained that swaps have distinguishing features within commodity indexes and accordingly, the Division favors carving out this defined category of instruments from Revenue Ruling 2006-1.
The AMD will also discuss other matters including changes to the New York State lobbying laws, an update on recent work with the Major Dealers and the upcoming Annual Meeting of the Association.
BCP Meeting on Industry Directory Utility
Business continuity management professionals at the major securities firms have agreed to develop an Industry Directory Utility ("IDU") in connection with the potential for an avian flu pandemic. This electronic directory, which was initially suggested by The Bond Market Association's Technology Committee, would be available to industry participants in the event of an avian flu pandemic to enhance communications and thereby help keep the financial markets open. In this regard, the anticipated scenario in the securities industry is that a significant percentage of employees would be working from home or other remote locations if there is a serious avian flu outbreak.
A group of business continuity professionals and members of The Bond Market Association's Technology Committee will meet on Monday, April 3, 2006 to delineate the elements of the business case with respect to the development of a global Directory of securities industry employees.
Further, at this April 3rd meeting, members intend to define more specifically the parameters of a "directory only" utility; that is, a facility that would basically provide an electronic listing of inputted names, telephone numbers and e-mail addresses, without initially including in this facility additional features such as telephony.
Most importantly, SIA and TBMA members and staff feel that this April 3rd meeting affords the industry an opportunity to learn more about the necessary preparations for a possible avian flu pandemic.
The BCP leadership wants to engage other market participants, including asset managers, in the developments of the IDU. Additional information on how asset managers and others can become involved in this project is forthcoming. If you have any questions please contact Douglas Taggart of the staff of The Bond Market Association at 646.637.9273.