Industry Hears About MiFID Key Policy Issues
Yesterday, over 200 industry members participated in a global Call-in on key policy issues associated with MiFID and its implementation. Below are highlights of what was discussed:
- January 31, 2007, MiFID must be implemented by EU regulators and by October 31, 2007, the industry must comply with MiFID regulations.
- MiFID will set forth policies on best execution which will be release on January 31, 2007. These best execution policies have implications for all markets, i.e., fixed-income, equities and derivatives and apply to all investment firms, which include both buy side and sell side.
- MiFID will set forth requirements on pre-trade and post-trade equity transparency, which also places requirements on investment management firms that are considered "systematic internalizers."
- MiFID will require that firms report transactions (post-trade) to regulators.
- The need to compare and contrast the issues concerning MiFID and U.S. initiatives such as buy side best execution guidelines.
Dan Stachel of State Street Global Advisors and Joseph Sack of SIFMA moderated the Call-in. Panelists included: Atilla Ilkson of Merrill Lynch Europe; James Wallin of AllianceBernstein; Bertrand Huet of SIFMA Europe; Jane Lowe of IMA and Liz Rae of IMA. For more information on the AMG and its involvement in MiFID, please contact Joseph Sack at 646.637.9265.
Trade Warehouse for Swaps is Launched
On Tuesday, November 14, 2006, the highly-anticipated Trade Information Warehouse was launched by DTCC. The Warehouse is a result of the industry's efforts to reduce the backlog of outstanding confirmations and to automate downstream processing by "creating a centralized and secure global infrastructure for the post-trade processing of over-the-counter (OTC) derivatives."
The Asset Management Group of SIFMA continues to work closely with the Major Dealers' Senior Oversight Group and MFA and ISDA on the development of the Warehouse. "The warehouse represents the launch of a very innovative and important industry solution to improve process, efficiency and risk control in the global credit derivatives markets," said Dick Weil, Chief Operating Officer of PIMCO. "It was made possible by some exceptional cooperation between dealers, investment managers and regulators."
James Wallin of AllianceBernstein and Jim Keller of PIMCO serve on the Senior Oversight Group. The AMG would like to recognize and thank them for their work in bringing this initiative to fruition. Questions regarding the activities of the AMG and how the Group works with derivatives automation initiatives, please contact Joseph W. Sack, Executive Vice President, SIFMA at 646.637.9265.
Click here to Read Press Release on Trade Information Warehouse (November 14, 2006)
Material Non-Public information (MNPI) in the Loan Market:
The LSTA Statement of Principles
On October 16th 2006, the Loan Syndications and Trading Association (LSTA) issued, as an exposure draft, a comprehensive set of principles designed to help loan market participants handle confidential information.
Since many market participants are also active in the public securities markets, as well as in loans, the LSTA saw the need to put policies and procedures into place designed to prevent material non-public information gathered in their loan market activities from being used in connection with their securities market activities. The LSTA's new guiding principles are designed to give firms clear guidance on what types of rules and procedures they should consider in setting up or maintaining appropriate structures.
In an effort to educate market participants, Elliot Ganz, General Counsel of the LSTA will present Material Non-Public information (MNPI) in the Loan Market: The LSTA Statement of Principles. The free seminars will be offered on 3 different dates in order to accommodate everyone's busy schedule. You may attend the seminar in person or via webcast.
To attend in person: 360 Madison Avenue (entrance on 45th) 17th Fl
To attend via webcast: Instructions will be sent the day before the seminar
To register: please click on one of the links below with the date and time of your choice.
November 21, 2006 1:00 p.m. - 3:00 p.m. EST
December 5, 2006 10:00 a.m. - 12:00 p.m. EST
December 13, 2006 1:00 p.m. - 3:00 p.m. EST
For more information or questions please contact Alicia Sansone at asansone@lsta.org or 212-808-1178.