Call for All Market Participants to Solve CDS Challenges
Industry standards, automation and industry involvement are three elements that are necessary for the CDS market to grow, according to John La Vecchia of Thomson TradeWeb.
In his opening remarks at TradeTech's Credit Derivatives Congress, Mr. La Vecchia (Chairperson of the event), set the scene by describing the explosive growth in the credit derivatives market and how it has outpaced the development of the supporting infrastructure.
Mr. La Vecchia explained that industry standards will drive market efficiency, liquidity and growth and that these efficiencies can be fully realized in the application of technology. However, in addressing the issues and challenges associated with market growth, all market participants need to be involved in the solution, which is outside of fax, telephone and email.
Click here to read the complete opening address at the Credit Derivatives Congress.
For information on how the Asset Managers Division is working with the industry on long-term processing solutions for CDS and other derivatives, please email Douglas Taggart at dtaggart@bondmarkets.com.
SEC Chairman Cox Testifies before Congress
Both the Senate Banking Committee and the House Financial Services Committee heard testimony from SEC Christopher Cox on the Commission's plan to improve financial disclosure for individual investors (April 25 and May 3, respectively).
Chairman Cox explained that investors need to be well informed when making investment decisions. Accordingly, the SEC has undertaken several initiatives that are aimed at protecting individual investors including:
- improving disclosure data through user-friendly Web pages
- disclosure in Plain English
- reducing accounting complexities
- providing financial education to elderly investors
Click here to read SEC Cox's Testimony on April 25, 2006 before the Senate Banking Committee
Click here to read SEC Cox's Testimony on May 3, 2006 before the House Financial Services Committee
NYSE Issues Statement on Pandemic Preparations
In a statement issued today by the New York Stock Exchange Regulation Inc., the NYSE has provided guidance on how to assess whether firms' Business Continuity Plans are suitable for pandemic scenario. The memo also raises the question of whether firms have systems in place to permit employees to work from home for prolonged periods.
The Bond Market Association and the Securities Industry Association are working with Jordan and Jordan on specifications for the development of an Industry Directory Utility that would help facilitate communications in a work-from-home scenario.
The NYSE memo also lists potential regulatory relief that the NYSE is considering.
Click here to read May 5th NYSE Information Memo
The Bond Market Association's
