Donahue Addresses The Bond Market Association

Yesterday, Donald F. Donahue, COO of DTCC addressed an audience of over 300 operations professionals at the Annual Fixed Income Operations Conference of The Bond Market Association held in Ponte Vedra Beach, Florida. In his remarks, Mr. Donahue focused on some key industry developments, including changes in the OTC derivatives market and the growing importance of business continuity planning, particularly in light of the avian flu.

In this regard, The Bond Market Association's Business Continuity Management Council ("BCMC") met earlier today to discuss the concerns about a flu pandemic and its potential impact on the securities industry. The Council will serve as an education resource for the industry on this matter and will be in regular communication with the worldwide health authorities. Also, on a broader level, the BCMC will coordinate additional BCP testing in 2006 with greater focus on buyside BCP needs.

Mr. Donahue also reminded the members of the audience that DTCC requires that firms test with the Clearing Corporation yearly. On October 15, 2005 some firms tested with FICC for the fixed income segment of the Phase II Industry BCP Test, but additional testing may also be required with DTCC under rules approved by the SEC. Failure to comply may also result in fines.

The staff of The Bond Market Association can address your firm's industry BCP questions. Peter Poulos of Credit Suisse First Boston serves as the Chairman for The Bond Market Association's BCMC.

Buyside Participates in TBMA/AMF Focus Group

Recently, a group of asset managers participated in a TBMA/AMF focus group in order to define best practices concerning trading and competition when using FIX protocols. The key question is whether there should be disclosure on competitive bids. The buyside recommended including an optional disclosure field in the protocol in this situation. The next steps include obtaining comments regarding the attached plain English description of industry practices in this area and to conduct a gap analysis that would compare this plain English statement with the current version of FIX protocols.

For more information on this initiative, please contact Elisa Nuottajarvi of The Bond Market Association at 646.637.9266. Dexter Senft of Lehman Brothers serves as Chairman of The Bond Market Association's Technology Committee, which is coordinating this joint initiative with FIX.

Click here for plain English description on the TBMA/AMF FIX initiative

NOTE: This Weekly Report on Policy Developments Affecting Asset Managers is a service of the Technology, Operations and Asset Manager Relations Department of The Bond Market Association. We encourage your input as this communication is designed to promote dialogue among members of the Asset Managers Division of The Bond Market Association and The Asset Managers Forum. Please feel free to contact Joseph Sack, Executive Vice President of The Bond Market Association or Douglas Taggart or Elisa Nuottajarvi of the staff of The Bond Market Association.