AMD Summer Executive Committee Meeting
The Executive Committee of the Asset Managers Division met on July 26 & 27 in La Jolla, California to review and discuss the Division's activities since its previous meeting in New York City on May 18, 2006. Below is a description of the top 3 items that the AMD discussed:
Credit Default Swaps Initiatives - The AMD has provided input to the Street's Major Dealers and their Senior Oversight Group ("SOG") as the SOG develops the proposed electronic Warehouse of CDS transactions with DTCC. The AMD hosted a Roundtable event on July 12th at which, the SOG presented high-level workflows that described the strategic architecture to support OTC derivatives processing. In addition, the AMD hosted an industry-wide conference call together with the Major Dealers, MFA and ISDA on July 25th. During the call, the Major Dealers announced that the confirmation backload has been reduced by over 80% on average.
Best Execution - The AMD and the CFA are in the process of evaluating whether current guidelines for best execution could be expanded to include specific guidelines for fixed income. A spokesperson from CFA spoke about this possibility at the AMD meeting. There is a perceived need on the part of fixed income asset managers for trading guidelines which address the nuances within the fixed income markets.
Pension Reform - AMD members and the Association advocate amending the prohibited transaction rules under ERISA to permit active cross-trading between separate private pension plan accounts held with the same asset manager. After the AMD Executive Committee meeting, the House of Representatives passed H.R. 4, the Pension Protection Act of 2006, which includes a provision to allow active cross trading for Investment Advisers among other provisions.
Other priority topics that were discussed at the meeting included:
- SEC's interpretive release on commission arrangements under section 28(e)
- Recent NASD proposals and general price transparency issues
- Commodity Index Swaps
- Legislation on Credit Rating Reform
- The need for an Emerging Issues Subcommittee to address new regulations, new instruments and new technologies
- SIA/BMA Merger Discussions
- Outreach to other asset management firms, hedge funds and other industry associations
The Bond Market Association would like to thank the entire Executive Committee of the Asset Managers Division for their commitment. In particular, the Association would like to recognize and thank AMD Chairman John Gidman of Loomis Sayles and AMD Vice Chairman David Murphy of Fidelity Investments for their dedication to the Division and for their work in preparing and moderating the Executive Committee meeting of the Asset Managers Division.
Senior executives at asset management firms that are interested in participating in discussions relating to the above-mentioned topics should contact Douglas Taggart of the staff of the Association at 646.637.9273.