Dow Jones Reports on Swaps, Technology and the Role of the AMF
In an article published on December 1, 2004, the Dow Jones Newswire reported on the increasing volume of derivatives particularly, credit default swaps, within the securities industry. With the growth of the swaps market, Dow Jones cites several industry challenges which includes a lack of automation for processing and settling swaps, which stems from cumbersome and manual communications processes. These issues are well-known to The Asset Managers Forum and its Swaps Committee. The article notes that the AMF Swaps Committee and respective Subcommittees, which are comprised of over 100 industry participants, are working to develop a set of industry best practices.
Dow Jones also reports that broker/dealers are investing heavily in technology to help facilitate straight through processing to minimize the amount of manual intervention, thereby mitigating operational risk and increasing efficiency.
In addition to other topics, The Bond Market Association's 2004 Technology Conference will address potential growth opportunities for technology in the derivatives market.
Click here to view the agenda for TBMA Technology Conference
Click here to register for TBMA Technology Conference
SEC Publishes Final Rule on Hedge Fund Adviser Registration
Yesterday, December 2, 2004, the SEC published its final rule that will require some advisers of private investment pools ("hedge funds") to register with the Commission under the Investment Advisers Act of 1940. In addition to discussing the growth in the hedge fund industry, the rule describes the matters which were considered by the Commission and explains the legal authority by which the Commission is acting. In moving forward with the registration rule, the Commission has amended several current SEC rules and Form ADV and has put forth a cost benefit analysis and a section on the possible effects on competition, efficiency and capital formation. The AMF Senior Executives Group has been monitoring developments on this matter throughout the year and will continue to report on relevant issues.
Compliance Date: February 1, 2006
Click here to read the Dissent of Commissioners Cynthia A. Glassman and Paul S. Atkins