AMD Executive Committee Meeting
The Executive Committee of the Asset Managers Division will hold its summer meeting in La Jolla, California on July 27th. At this meeting, the Division will conduct a mid-year review of its accomplishments and discuss how the Division will carry out its goals for the remainder of 2006. Specifically, the AMD will address buy side best execution, developments in CDS automation, cross trading and other legislative matters and related educational initiatives. Prospective candidates for AMD membership are also invited to attend. Please contact Douglas Taggart of The Bond Market Association at 646.637.9273 for additional information.
Industry Discusses Regulatory Relief for Avian Flu at TBMA/SIA Meeting
Fourteen major dealer firms met with the SEC, NASD, Federal Reserve, NYSE and others on July 10 to discuss the types of regulatory relief that may be needed in the event of a pandemic. In a pandemic, the regulators made clear that they will stress the importance of keeping the markets open as long as possible, provided that the clearance system is functioning, as long as firms can provide basic supervision, recordkeeping and price transparency.
In addition, The Bond Market Association and the Securities Industry Association are formulating a response to the NASD's Notice to Members, which seeks comment on specific, short-term regulatory relief that might be needed in the event of a pandemic.
Presentation and Roundtable on CDS Automation
On Wednesday, July 12, members from the Asset Managers Division, the Senior Oversight Group and vendors attended a presentation at The Bond Market Association on derivatives workflows developed by the SOG. Stuart McClymont of Deutsche Bank presented the workflows and described the various models by which an asset manager and a dealer could connect to the Trade Warehouse. Stuart explained the process by which a CDS trade would flow through a trade workflow engine, a trade legal execution engine and into a warehouse of registered trades. Following Stuart's presentation, James Wallin of AllianceBernstein moderated a discussion during which asset managers and participants raised questions regarding connectivity to the warehouse, reconciliations, the allocations process and other operational matters. The AMD thanks Stuart and James for their work. The Division will continue to provide additional educational opportunities on these developments.
