Communications: Archives
May 15, 2007 — Corporate Actions Event on June 7, 2007
The mission of the AMF’s Corporate Actions Committee is to pursue operational enhancements related to collection and processing of corporate actions data. Come hear the committee discuss its best practices implementation priorities at the “Local to Global Corporate Actions Event,” sponsored by STP Events, taking place June 7, 2007, in New York City. Please click on the following link for more information on this event: http://www.stpevents.net/cany2007/.
December 28, 2006 — SIFMA Recommends Early Market Close
SIFMA Recommends Early Market Close on Tuesday, January 2, 2007, for Trading of U.S. Dollar-Denominated Fixed-Income Securities in the U.S. in Honor of Former President Gerald Ford.
December 26, 2006 — NYSE will be Closed on January 2, 2007
The New York Stock Exchange and NYSE Arca, subsidiaries of NYSE Group, Inc., will be closed on Tuesday, January 2, 2007, in observance of the national day of mourning for President Gerald R. Ford.
Click here to read the press release from the NYSE.
October 6, 2006 — Corporate Actions Best Practices
The Asset Managers Forum Corporate Actions Committee has defined best practice recommendations to identify solutions in order to reduce financial, operational and reputation risk related to processing corporate actions. The Committee believes these best practice recommendations will stimulate discussion in the investment community and lead to adoption by the industry in order to mitigate the related risks. These best practices were published for comment at AMF hosted Lunch and Learn on October 4th. The AMF is committed to further educate the industry members about these best practices and to promote dialogue in order to solicit constructive comments and to develop plans for implementation.
The 17 best practice recommendations are fully defined and explained within the best practices document which is available here.
Any comments relating to these best practices should be sent to Elisa Nuottajarvi of the AMF staff before November 30th at Elisa Nuottajarvi.
October, 2006 — Asset Manager Conference Call Concerning Emerging Issues Relating to Swaps
The Asset Managers Division cordially invites other members of The Bond Market Association and members of The Asset Managers Forum to participate in a special conference call to hear asset management professionals discuss emerging issues relating to swaps.
Moderators and Panelists:
Daniel W. Stachel, Director of Credit Policy, Global Fixed Income State Street Global Advisors
Wesley A. Sparks, CFA, Senior Vice President, Schroder Investment Management North America Inc.
James P. Wallin, Senior Vice President, AllianceBernstein
Joseph W. Sack, Executive Vice President, The Bond Market Association
Topics:
1. TRACE Reporting and Dissemination of CDS-related Trades/Discussion of New Regulatory Proposal
2. Frequently Asked Questions about DTCC’s New Electronic Warehouse for Credit Default Swaps
3. The correlation between rising volume in CDS and decreasing volume in Investment Grade Corporate Bonds
May 23, 2006 — New AMF Leadership Elected
At the AMF Quarterly Business Meeting today, the membership unanimously elected Jason Jesner of Credit Suisse as Chair and John Gallagher of BlackRock and Lisa Ilaria of New York Life Investment Management as Co-Vice Chairs. James Hintz, Treasurer (and outgoing Co-Vice Chair) of the AMF, conducted the business proceedings.
The Asset Managers Forum would like to thank Julie Warren of New York Life Investment Management, immediate past Chair of the AMF, and James Hintz for their work with the Forum.
 Jason Jesner |
 John Gallagher |
 Lisa Ilaria |
 Julie Warren |
 James Hintz |
Lunch & Learn on Performance Measurement
Featured Speaker: David D. Spaulding, President, Spaulding Group
Understanding investment performance is important for all professionals working in the asset management industry. Properly measuring investment performance is essential to client reporting, as well as for many marketing, competitive or regulatory compliance related reasons.
This Lunch & Learn, sponsored by SimCorp, will introduce you with the basic building blocks of investment performance so that you will better understand how performance can be measured and how your firm can improve processes to better enable performance measurement. Click on the Upcoming Events section to register.
Steering Committee Meets with EMTA
March 27 Call on New Netting Facility
At the March Steering Committee Meeting of the AMF, a representative from the Emerging Markets Trade Association ("EMTA") announced that it is proposing to sponsor a Multilateral Netting Facility to address the longstanding backlog in the settlement of transactions in Venezuela Oil Obligations. A special conference call has been scheduled to discuss the involvement of the asset management community. More...
Audio Link to Global CDS Conference Call
March 13, 2006On March 8, 2006, the AMD sponsored a global conference call of approximately 500 participants to raise the industry’s awareness on recent CDS advancements. Panelists on the conference call represented the Major Dealers, MFA and AMD.
Click here to listen to the CDS Advancements Conference Call
Click here to read a report on the CDS Advancements Conference Call
March 15, 2006 —Steering Committee Meets with EMTA
March 27 Call on New Netting Facility
At the March Steering Committee Meeting of the AMF, a representative from the Emerging Markets Trade Association (“EMTA”) announced that it is proposing to sponsor a Multilateral Netting Facility to address the longstanding backlog in the settlement of transactions in Venezuela Oil Obligations entered into before January 2, 2002. The Facility, which will be cash-settled at a settlement price to be determined on the basis of a polling of all participating firms, is expected to be completed before June 30, 2006.
A special conference call has been scheduled for Monday, March 27 at 3 p.m. EST to discuss the involvement of the asset management community. Specifically, the conference call will address:
- The background of the current warrant fails problem
- Internal and External Reconciliation of Warrant Positions and Payments relating thereto
- Multilateral Netting
Click here for additional details on EMTA’s proposed Multilateral Netting Facility
The call-in details are as follows:
Date: Monday, March 27, 2006
Time: 3 p.m. EST
Call-in: 1-800-283-1476
Confirmation: 875-350
Aviva Werner of EMTA will be a presenter during the conference call. Please email Diane Trupia to confirm your participation in this conference call.
March 13, 2006 — AMF Vendor Profiles
In an effort to provide further education to its members, the AMF has worked with swaps vendors to develop a profile of the products and services they offer. These swaps products and services help automate the post-trade processing of OTC derivative transactions.
Major Dealers on Swaps (CDS) Processing Developments
The Association's Asset Managers Division will host an industry-wide call-in on Wednesday, March 8, from 10:00 am until 11:15 am (Eastern Time). This will be an update on recent industry advancements for credit derivatives. Click here for more information.
Swaps Compliance Lunch & Learn
The AMF is pleased to announce that SimCorp will sponsor an AMF Lunch & Learn event about compliance with investment guidelines and risk management for swaps on March 23, 2006. This interactive Lunch and Learn in New York City will include a presentation of compliance and risk management concepts outlined in the best practice recommendations. The instruments covered in the discussions are interest rate swaps, credit default swaps and total return swaps. Click here for more information.
Julie Warren and John Gallagher Invite you to Attend a Special Event
In this video announcement, Julie Warren of New York Life Investment Management and John Gallagher of BlackRock invite you to attend an AMF Workshop on February 14, 2006. This AMF Workshop, entitled: “Completing the Picture: Business Insights into the Operations of Asset Managers and Broker-Dealers is another way by which the AMF provides connectivity among industry participants. If your firm believes in industry connectivity on operations issues, then this is the perfect opportunity for you to participate in the dialogue. Inevitably, there will be numerous creative ideas shared and “take-aways” on which to follow-up.
Take the first step, click on the video link, and register today!
Click here to view this special video invitation.
December 20, 2005 — Industry Call-in on CDS Automation
Yesterday, over 250 industry professionals called-in to hear a special AMD broadcast on developments relating to the automation of processing Credit Default Swaps. The Asset Managers Division’s Market Practices and Standards Subcommittee and the Group of 14 provided an update on progress being made to automate confirmation and matching processing. The guest speakers, who included asset managers, dealers and industry utility representatives, also answered questions from call participants.
Click here to listen to the December 19 AMD Conference Call
December 19, 2005 Call-in — CDS Electronic Confirmation Developments
The Association's Asset Managers Division will sponsor this Call-in on Monday, December 19, beginning at 3:30 p.m. (Eastern Time). Call-in number in the U.S. is 800-810-0924; passcode is 417-7830. Click here for more information.
Click here for conference call AGENDA.
November 17, 2005 — Update on Novation Protocol
The Asset Managers Division of The Bond Market Association recently initiated discussions with the Group of 14 Dealers to consider a more practical response guideline for novations. As a result of these discussions, the dealers have agreed to respond to their client requests for novations using a two hour consent guideline. Client Letter from Dealers.
In addition, the dealers have agreed to work with the Asset Managers Division and other client associations on a longer-term novation solution for all market participants.
The Bond Market Association would like to thank the AMF for bringing these issues to the forefront in the course of preparing for the implementation of the Novation Protocol by asset managers.
October 28, 2005 — AMF Elects New Slate of Steering Committee
Jim Hintz, Treasurer of The Asset Managers Forum (pictured left) officiated the proceedings that installed the new Chair and Co-Vice Chair of the Forum and elected six new members to the Steering Committee.
It was at the AMF Quarterly Meeting, the AMF voted unanimously in favor of adding six new members to the Steering Committee. Jim Hintz, AMF Co-Vice Chair and Treasurer, officiated the proceedings. Through the proceedings, Julie Warren of New York Life Investment Management and Jason Jesner of Credit Suisse Asset Management (both pictured above) were installed as Chair and Co-Vice Chair of The Asset Managers Forum, respectively. The AMF welcomes and congratulates the following new Steering Committee members:
Jean Ebbott, Morgan Stanley Investment Management
David Skrodanes, GM Asset Management
Larry Barnett, Appix Consulting
Christopher Coleman, Investors Bank & Trust
Thomas Garley, Thomson TradeWeb
Janet Wynn, Depository Trust and Clearing Corporation
Video on AMF Quarterly Business Meeting and Corporate Actions Workshop
In a special video interview with Joseph Sack, Julie Warren of New York Life Investment Management and Chair of The Asset Managers Forum (pictured left), discusses the events and the benefits of attending the AMF Quarterly Meeting and the AMF Corporate Actions Workshop on September 21 and 22, respectively.
Click here to view the special video interview
August 19, 2005 — Best Execution Lunch and Learn Highlights
Newport Beach, CA and New York City, NY
On Tuesday, August 16th, a panel of senior executives discussed the practical issues relating to the bond trading responsibilities of asset managers in light of their fiduciary duties to their customers. This discussion delineated some of the guidelines of asset managers with regard to electronic trading facilities. Click here to read the full report, view video highlights and listen to audio clips.
June 28, 2005 — SEG Letters on Pension Reform and NASD Mark-up Policy
Pension Reform
In a letter to the House Committee on Education and the Workforce, The Bond Market Association and the Senior Executives Group of AMF urged inclusion of changes to ERISA's transaction rules in the Pension Protection Act of 2005 (H.R. 2850).
NASD Mark-up Policy
In a letter to the U.S. Securities and Exchange Commission, the Senior Executives Group of AMF voiced concern that the NASD Mark-up policy and interpretation may have unintended adverse effects on market liquidity.
Click here for more information and to read these two SEG letters
December 15, 2005 — Information relating to Transit Strike
The Bond Market Association today announced that it is recommending normal trading hours for U.S. dollar-denominated fixed income securities in the United States in the event that there is a transit strike in New York City. Furthermore, to assist its members and the industry in the event of a New York City transit strike, The Bond Market Association has posted links to city, government and agency Web sites which provide additional information. Click here for more information.
November 17, 2005 — Update on Novation Protocol
The Asset Managers Division of The Bond Market Association recently initiated discussions with the Group of 14 Dealers to consider a more practical response guideline for novations. As a result of these discussions, the dealers have agreed to respond to their client requests for novations using a two hour consent guideline. Client Letter from Dealers.
In addition, the dealers have agreed to work with the Asset Managers Division and other client associations on a longer-term novation solution for all market participants.
The Bond Market Association would like to thank the AMF for bringing these issues to the forefront in the course of preparing for the implementation of the Novation Protocol by asset managers.
July 26, 2005 — AMF Promulgates Draft Swaps Best Practices Document
The Asset Managers Forum Bi-Coastal Swaps Conference, held on July 26, 2005, attracted a record number of participants. Approximately 200 industry members from various constituencies attended this well rounded conference and discussed the AMF's Swaps White Paper, which was released for public comment at this event. This EastCoast/WestCoast Conference was designed to put asset managers, dealers, custodians and other market participants in the driver's seat in order to steer the industry toward enhanced operational business practices relating to swaps.
Swaps trade volumes are setting new records each year and the market continues to attract new participants each year. The Asset Managers Forum is helping the swaps market to enter into an era of modernization through automation and standardization. Specific recommendations to this end are being proposed in the AMF’s Swaps White Paper. For more information regarding the AMF’s Swaps Best Practices Initiative please refer to the White Paper which also serves as an Aid to Public Comment. To obtain a paper copy of this document, please contact Diane Trupia at 646.637.9200.
May 20, 2005 — Bank Loan Workshop and Quarterly Meeting
Over 130 industry members attended The Asset Managers Forum Bank Loan Workshop and Quarterly Meeting in New York City, NY and Newport Beach, CA on May 16 and May 17, respectively. The Workshop provided participants with and overview on Bank Loans and discussed why they are popular and provided insights on how they fit in the overall fixed income strategy. At the AMF Quarterly Business Meeting, Forum members met in Committee breakout sessions and participated in various educational panels relevant to the businesses of asset managers and custodians.
The AMF would like to recognize and thank SimCorp USA, Inc. for its support and sponsorship of these events. 
May 13, 2005 — Formation of Allocations Subcommittee
The AMF STP Committee recently formed Subcommittees to work on the Committee's STP Best Practices Agenda. The Subcommittees will concentrate on the following issues: Allocations, Confirmation/Matching, Metrics & Operational Performance Measurements and Security Data.
In order to maximize the potential to achieve results quickly, the Committee leadership has decided to focus on one area at a time, beginning with the Allocations Subcommittee. Anyone interested in serving in this Subcommittee should contact Elisa Nuottajarvi of the AMF staff.
Chris Palmer of Goldman Sachs Asset Management and Christian Barsanti of Prudential Investment Management serve as the AMF STP Committee Co-Chairs.
May 13, 2005 — Committee Works on Auditor White Paper
The Pricing Committee is currently working on drafting an "Auditor White Paper". The goal of this paper is to give pre-audit guidance to asset management firms that should help highlight some of the bottlenecks that affect the audit process. By identifying these bottlenecks, the Committee hopes to form simple and tangible best practice guidelines for facilitating an efficient audit process. The Committee will continue to reach out to auditors and the broker/dealer community to ensure a comprehensive document. The Committee will offer an update on its progress at the AMF Quarterly Meeting on May 17, 2005.
Acclaimed Fund Manager Dan Fuss of Loomis Sayles will Address the SEG & Members of the Bond Industry
The leadership of the Senior Executives Group is pleased to announce that Daniel J. Fuss of Loomis, Sayles & Company, L.P. will address industry professionals on the outlook of the bond markets during the Asset Manager Session of The Bond Market Association's Annual Meeting on April 20, 2005 at the Waldorf-Astoria Hotel in New York CIty, N.Y. more…
March 31, 2005 — Swaps Committee meets with ISITC and SWIFT
The Swaps Committee of The Asset Managers Forum is continuing to document its recommended best practices for processing derivatives transactions. On March 21, 2005, Committee Chairman George Hall of Goldman Sachs Asset Management provided an update on the Swaps Best Practices Initiative to the ISITC Custodian Committee. In tandem with the AMF project, ISITC will partner with the Forum to help increase the level of automation for swap operations. The AMF will work with ISITC in designing ISO messages and standards for the purpose of improving the communication between the asset manager and custodian. At a subsequent meeting, the AMF and ISITC met with representatives from SWIFT on enhancing such communications in conjunction with the development of best practices.
In addition to George Hall, the swaps initiative industry leadership includes: Marcia Clark (PIMCO), Jean Ebbott (MSIM), Jason Jesner (CSAM), Tracey Jordal (PIMCO), Joseph Pomo (GSAM) and Linda Singer (Prudential Consultant).
March 22, 2005 — AMF & TBMA STP Plan of Action for 2005
In a joint meeting on March 1, 2005, the AMF STP Committee and The Bond Market Association STP Steering Committee discussed creating best practices for STP and mortgage backed processing. The Forum's STP Committee has defined several items as being critical for enhancing Straight Through Processing in the securities industry.
Based on a trade and processing lifecycle, these items are divided into four major categories: Security Data, Allocations, Confirmation / Matching, and Performance Measurements. Below is a list of these aforementioned items that, in effect, create the working agenda for the AMF STP Committee and TBMA STP Steering Committee for the year 2005.
Security Data
- The Committee will work on promoting standards for rounding decimals in the prices of fixed income securities.
- The Committee will examine the possibility of creating a common standard to identify the appropriate legal entities within a trade.
- The Committee plans to focus on the key elements of a trade that are necessary for identification purposes. These key elements may become part of an industry standard.
Allocations
- The Committee will work to ensure that "place of settlement" information is included as part of the trade information in electronic trading.
- The Committee will work on creating best practice recommendations as to how soon after a trade is executed the customer should allocate the trade to sub-accounts.
Confirm/Matching
- The Committee will work on creating best practice recommendations on how long it may take the dealers to respond to an allocation by confirming it.
- The Committee will work on providing recommended guidance on the timing of electronically confirming trades that are done via telephone.
Performance Measurements
- Once the industry identifies best practices, the Committee could create common performance matrixes to evaluate the industry's efforts within the scope of the desired practices.
In addition to the above items, the Committee also plans to participate in a joint a working group on MBS pair-offs, (key agenda items - pair offs, comparison and netting), and educate the AMF membership regarding the latest developments and availability of FIX protocols and the SWIFT network.
March 20, 2005 — Formation of Pair-Off Working Group
The AMF STP Committee and TBMA Operations Council recently held a joint meeting where they decided to create a working group that would work with the FICC to develop generic solutions for Pair-Offs, Fail Confirms and the Bi-lateral netting service proposal. The Working Group contains cross market representation from buyside, sellside and custodians, as well as the FICC. The first item the Working Group will tackle is pair-offs, particularly for Mortgage Backed Securities, but the goal is to create a generic solution that would eventually work with all asset classes.
Currently the mortgage backed securities settlement process, i.e. reconciliation and closing off open items each month, is a significant labor driver for both the sellside and the buyside. The working group is going to look into creating an alternative process, or utility, to standardize and streamline and transactionalize the mortgage TBA settlement process to create a system where the monies became a part of the end of day settlement at DTCC.
The first meeting is scheduled for Wednesday, March 30th. Individuals interested in participating in this effort should contact Elisa Nuottajarvi at 646.637.9266.
March 11, 2005 — SEG to Develop SAS 70 Best Practices
On April 13, the AMF Senior Executives Group will attend a meeting at the SEC on the experiences of asset managers and auditors in implementing control requirements under Section 404 of Sarbanes-Oxley. In addition, the SEG will develop best practices for SAS 70 and develop a special web site for this best practices advocacy initiative more...
February 14, 2005 — East Meets West in AMF Bi-Coastal Meetings
The Asset Managers Forum hosted a Workshop on Operational Risk Management and held its Quarterly Meeting in Newport Beach, CA and New York City, NY on February 8 and 9, respectively. These meetings were held simultaneously and in real-time via video conference. During the Workshop, attendees participated in panel discussions that addressed the controls that are needed to manage operational risk. In addition, participants shared in a dialogue on "best business practices" and discussed issues relating to Sarbanes-Oxley.
At the Quarterly Meeting, the AMF Swaps Committee presented some of the initial best practices for swaps processing, members spoke on the special challenges of managing a global staff and heard a special presentation on Basel II.
This AMF Operational Risk Management Workshop was sponsored by MarketAxess.
January 26, 2005 — Committee Co-Chairs Named
At its first meeting in 2005, the AMF Pricing Committee named Sean Everitt of Prudential Financial and Euan Crane of Morgan Stanley as Committee Co-Chairs. Jean Ebbott of Morgan Stanley Investment Management and Tom Garley of Thomson TradeWeb serve as the Steering Committee Liaisons for this Committee. During the meeting, the Committee identified several industry challenges associated with pricing that it plans to address going forward in 2005.
December 8, 2004 — Swaps Panel at TBMA Technology Conference
On December 8th in New York City, the AMF Swaps Leaders offered a presentation at The Bond Market Association's Fixed Income Summit & Expo on Technology and Electronic Trading. The "Tech Summit" is the Association's biggest technology themed conference of the year and is always very well attended; 400 fixed income professional were in attendance this year. The event has a reputation of being forward looking and discussing the newest trends in electronic trading. This year the theme was electronic trading of swaps and credit derivatives. The AMF Swaps Best Practices panel was preceded by panels that discussed derivatives and electronic trading in general, and break out sessions for Interest Rate Swaps and Credit Default Swaps.
These panels really set the scene for the AMF panel, as they discussed the benefits of electronic flow in derivatives, and drivers for electronic trading in swaps such as speed of execution, liquidity, error free processing and entry to back-office systems etc. The AMF panel received some interesting questions from the audience, such as whether the buyside feels that the operational efficiency of the broker-dealer is a driver regarding who the buyside is trading swaps with. All panelists answered the question by explaining that operational efficiency certainly plays a role, particularly if the performance is sub-par to peers and affects the trade by increasing operational risk. Panel members also pointed out that broker-dealers should work with the AMF to increase the efficiencies of the swaps processing so that many buyside firms could handle more swaps volume.
December 8, 2004 — E-Trading and the Future of Swaps
At The Bond Market Association's Annual Technology Conference today, Michael Spencer, Group Chief Executive Officer of ICAP, addressed over 300 securities professionals on developments influencing today's interest rate swaps and credit derivatives markets. In his keynote opening address, Mr. Spencer stated that there is an overwhelming consensus in the industry to move toward electronic swap brokering. This move will subsequently bring market efficiency to a new level and transform the OTC derivatives market into an electronic market.
Click hear to read Michael Spencer's Keynote Address
December 6, 2004 — Swaps Panel at ISITC Conference
The AMF Swaps Best Practices Initiative Subcommittee Chairs participated in a panel presentation at the ISITC-IOA Quarterly Meeting on December 6, 2004. The panels were designed to educate the industry about the AMF's Swaps Best Practices Initiative and to talk about the purpose and objectives of the initiative, as well as current status and plans for next year.
Approximately 200 buyside, custodian and dealer representatives attended the event. The AMF Swaps Best Practices panel, and was followed by a presentation on DTCC's Deriv/Serv product and an ISDA presentation on derivatives challenges. The AMF swaps panel discussed the purpose of the initiative, which is to first draft a statement of current processing practices in swaps, then identify proposed changes based on the analysis including automation opportunities that would enhance the efficiency of swaps processing, evaluate those changes with the industry (buyside, sellside, custodians, vendors), and then recommend best practices for more efficient and automated processing of swaps. The panel encouraged ISITC participation in the Swaps Best Practices work and particularly the custodian participation as there are many communications that could be enhanced with custodian banks.
October 28, 2004 — Thomson TradeWeb Presentation
Click on above title to view video
In a video presentation, Tom Garley, Director of TradeXpress at Thomson TradeWeb discusses the new integration of TradeWeb and Omgeo and how together, the two organizations will work to help the industry achieve industry efficiencies. In his remarks, Mr. Garley states that is important for the industry to develop best practices for trade processing.
October 27, 2004 — Swaps Workshop
Today, it was "standing-room only" when nearly 150 securities professionals (pictured above) gathered at the Global Conference Facilities in NYC to attend and participate in a full-day Workshop concerning the status of The Asset Managers Forum's Swaps Best Practices Initiative. This Workshop entailed a series of presentations from the leadership of the following AMF Swaps Subcommittees that are developing best practices: Trade Execution; Confirm/Legal; Compliance; Valuation; and Maintenance. For a detailed description of the panel presentations, see the news items below. Copies of the groups' presentations and links to video highlights are available on this web site. Also, several swaps vendors had the opportunity to exhibit their products at the Workshop.
Swaps Trade Execution
The AMF Swaps Trade Execution panel reviewed the life cycle of a trade and post-trade processing through a flowchart that diagramed the typical trade process. Subcommittee Chair, Jason Jesner of Credit Suisse Asset Management moderated the panel, which included Philip Blake of BlackRock, Chip Carver of Swapswire, John Lewis of Scrittura, Robyn Spillane of Northern Trust and Eileen Yin of Credit Suisse First Boston. The panel described the steps of a swap transaction from pre-trade to execution to post-trade, and began to discuss ideas to streamline the execution process.
Swaps Confirm/Legal
Tracey Jordal of PIMCO, Chair of the AMF Swaps Confirm/Legal Subcommittee, moderated a panel that discussed some of the issues and challenges associated with the swaps negotiation process, the credit support annex, custody/control agreements and confirmations. Renata Mulder of Morgan Stanley, William Kovacs of 40/86 Advisors and Linda Singer of the subcommittee participated on the panel.
Swaps Compliance
The AMF Swaps Compliance Subcommittee presentation was given by Marcia Clark of PIMCO, who shared with the audience the initial proposal for swaps compliance best practices. The proposal is summarized in the subcommittee's presentation. Any comments regarding this presentation may be emailed to Elisa Nuottajarvi.
Swaps Valuation
The Chair of the AMF Swaps Valuation Subcommittee, Jean Ebbott of Morgan Stanley Investment Management, moderated a panel that addressed the valuation process. The panel discussed typical industry issues such as the need for asset managers to receive pricing information on a timely basis and the importance of standardization. The panel included Jim Blinn of SQX, Tony Cassese of Lehman Brothers, Umesh Bhide of Bear Stearns Pricing Direct, Brad Payne of State Street and Nirav Sheth of Morgan Stanley Investment Management.
Swaps Maintenance
The AMF Swaps Maintenance Subcommittee panel was moderated by Subcommittee Chair Joe Pomo of Goldman Sachs Asset Management. Other panel members were Neil Burke of Morgan Stanley (sellside), Ila Eckoff of BlackRock (buyside), Eileen Felix of ABP Investments (buyside) and John Spicciatie of Bank of New York (custodian). The panel shared their initial thoughts regarding the issues and challenges related to swaps maintenance, particularly relating to payments. The panel received many comments and feedback from the audience that will help the Subcommittee forward in the best practices initiative.
2003-2004 — Regulatory information
This is a list of regulatory reforms, proposed rules, concept releases and legislation that could affect the businesses of asset management firms.
July 22, 2004 — SEC & AMF Update on STP
At an AMF Lunch and Learn Event held at the Global Financial Markets Conference Center in New York, over 100 industry professionals gathered to hear a panel moderated by Brad Levy of Goldman Sachs on the future of STP in the fixed income markets. At the event, Jeffrey Mooney of the SEC provided an update on the Commission's progress in its review of the comments received relating to the STP Concept Release. Michael Wyne of Fischer Francis Trees & Watts and Julie Warren of New York Life Investment Management reaffirmed the buyside's commitment to developing best practices. On the sellside, Greg Burnes of Credit Suisse First Boston and Brad Levy discussed the common concerns that broker/dealers face in light of a possible SEC rule and stated their support for a best practices approach. In addition, John Burchenal of TradeWeb spoke about STP from the vendor perspective.
STP Lunch and Learn Video Highlights
Click on names for video highlights
Brad Levy, Goldman Sachs
As moderator of the STP Lunch and Learn Event, Mr. Levy describes that the goal of the panel is to discuss the state of STP in the fixed income market. He states that the goal of STP is to increase efficiency and ultimately reduce risk.
Jeffrey Mooney, Securities and Exchange Commission
SEC spokesperson and Senior Special Counsel Jeffrey Mooney offers a description (from a regulatory perspective) on STP and the Commission's Concept Release. Mr. Mooney summarizes the general industry response to the Securities Transactions Settlement Concept Release and explains that the industry's comments will provide a good framework for how the Commission will proceed.
Greg Burnes, Credit Suisse First Boston
Mr. Burnes offers sellside insights into STP matters and states that best practices should be a goal for the industry and that best practices are necessary before any regulatory mandate.
Michael Wyne, Fischer Francis Trees & Watts
Julie Warren, New York Life Investment Management
AMF Steering Committee members Julie Warren and Michael Wyne, explain the buyside's position on STP, which advocates confirming trades at the block level on trade date through industry best practices in order to reduce "pre-confirmation" risk. With regard to moving to T+1, the panelists cite concern that the benefits may not outweigh the costs.
John Burchenal, TradeWeb
As part of the vendor community, John Burchenal describes the vendor options for facilitating STP and cites that an STP regulatory mandate could create challenges for small and medium size firms.
June 8, 2004 — Information of Full Market Close
In honor of the national day of mourning for former U.S. President Reagan, the financial markets will be closed. The Bond Market Association, SEC, FICC and NSCC have issued a series of news releases that give direction to the markets regarding the full market close on Friday, June 11, 2004. Below are brief statements made by The Bond Market Association and the SEC regarding the close on Friday; for complete details, click on the appropriate release under the "Market Notices" section. Questions may also be directed to Joseph Sack, Executive Vice President of The Bond Market Association or Douglas Taggart of the Technology, Operations and Asset Manager Relations Department.
Statement by The Bond Market Association
TBMA recommends a full market close in the U.S., U.K. and Japanese fixed-income markets on June 11, 2004. In addition, the Association is recommending that secondary market cash transactions in U.S. government and federal agency securities, executed on Thursday, June 10, 2004 and normally settle on Friday, June 11, 2004, should instead settle on Monday, June 14, 2004 (i.e. T+2) where practical. Also, please note that DTCC will remain open on Friday, June 11, 2004.
Statement by the SEC
The SEC confirms that the securities markets will be closed on Friday, June 11, 2004 and the Commission will not accept EDGAR filings on June 11.
June 3, 2004 — Swaps Committee Commences New Initiative
The AMF Swaps Committee is beginning a new initiative to map out the life cycle of a trade in order to identify possible areas for greater efficiency. As a result, the Swaps Committee anticipates developing a set of proposed best practices in the derivatives area. The AMF will work closely with all of its members as well as the sellside in order to produce a comprehensive report. If you are interested in becoming a part of this new initiative, please contact Joseph Sack, Staff Advisor to the AMF Swaps Committee.
May 21, 2004 — DTCC Offers Presentation on Deriv/SERV to AMF
In an effort to mitigate operating risk in the OTC derivatives market, DTCC developed an automated trade confirmation service (Deriv/SERV) for credit default swaps. Janet Wynn, Managing Director and General Manager for DTCC's OTC Derivatives business area outlined Deriv/SERV's current capabilities and spoke to proposed enhancements to the service at the AMF Quarterly Meeting on May 21, 2004. The AMF Swaps Committee will further examine Deriv/SERV's benefits to the buyside and will conduct follow-up meetings with DTCC.
May 21, 2004 — STP Committee Calls for Best Practices
STP Committee Chair, Christine Sumner of Pacific Life Insurance Company participated in a panel moderated by Joseph Sack of The Bond Market Association. The panel was composed of buyside, sellside and vendors who advocated that the industry adopt voluntary best practices to help facilitate STP. John Burchenal of TradeWeb and Gary Altiero of Bear Stearns joined Ms. Sumner on the panel. The AMF STP Committee has met frequently to discuss the buyside’s approach in responding to the SEC STP Concept Release. Currently the buyside, through the AMF, is working in coordination with The Bond Market Association in agreeing to develop best practices. If you are interested in contributing to this initiative, please contact Staff Advisor to the AMF STP Committee, Douglas Taggart of the Technology, Operations and Asset Manager Relations Department.
May 21, 2004 — AMF Quarterly Meeting Highlights
COO Group Supports SEC Disclosure
COO Group Members Thomas Hirschfeld of J. & W. Seligman and Lee Pickard of Pickard & Djinis offered an overview of the buyside's perspectives on the issue of mutual fund/hedge fund side-by-side management more...
STP Committee Calls for Best Practices
STP Committee Chair, Christine Sumner of Pacific Life Insurance Company participated in a panel composed of buyside, sellside and vendors who advocated that the industry adopt voluntary best practices to help facilitate STP more...
May 13, 2004 — Swaps Committee Examines Life Cycle of a Trade
On May 13, the AMF Swaps Committee met to begin to map out the life cycle of a swaps trade. Swaps Committee Chairman, George Hall of Goldman Sachs Asset Management and the committee will discuss its "next steps" in going forward at the AMF Quarterly Meeting on May 21. Specifically, the committee will address the possibility of creating a white paper on swaps which would outline best practices. The goal in this proposed initiative is to identify areas within swaps products that need greater efficiency through automation.
May 13, 2004 — AMF Participates in Nationwide STP Conference Call
STP Committee Chair, Christine Sumner of Pacific Life Insurance Company and the STP Committee is working to submit a Comment Letter to the SEC on Securities Transaction Settlement Processing. The Committee has had numerous meetings and conference calls to discuss the buyside’s approach in replying to the SEC Concept Release. On April 29, the AMF and BMA STP Committees shared their respective views on STP and their respective approaches in responding to the SEC. Approximately 300 industry members from around the nation participated in this call. Since this call, the AMF has created an outline of main points to aid in the development of the AMF Comment Letter. The outline is currently under review by the AMF STP Committee.
May 7, 2004 — AMF May 20-21 Quarterly Meeting
The Asset Managers Forum will host its Quarterly Meeting on May 21, 2004 at the Global Financial Markets Conference Center in New York. In tandem to the Quarterly Meeting, there will be a special "members only" meeting on May 20 to discuss the rationale of the buyside’s positions on STP to be presented to the SEC. These series of meetings will afford members with an opportunity to discuss emerging industry initiatives and to receive an update on the work of the AMF. Click on the listed "Upcoming Events" to register.
April 23, 2004 — AMF Welcomes New Members
Lord Abbett, Freddie Mac and Scrittura joined The Asset Managers Forum in April. Joining as a full member, Lord Abbett is one of the nation’s longest exisiting money management firms with over $72 billion in assets under management. Also joining as a full member, Freddie Mac helps homeowners and renters acheive lower housing costs and better access to home financing by issuing mortgage pass through securities and debt instruments in the capital markets. Enrolling as an associate member, Scrittura offers a web-based document and process management solution that is used to automate operations. Scrittura specializes in the OTC derivatives market.
April 6, 2004 — COO Group Meets with SEC
The AMF Chief Operating Officers (COO) Group has mapped out a plan to responed to the SEC rule proposal to require extensive new disclosure requirements for portfolio managers. On April 6th, the COO Group began a dialogue with the U.S. Securities and Exchange Commission on the possible effects the proposed rule may have on asset management firms. In addition to holding additional meetings with regulators, the Group will submit an official comment letter to the Commission.
March 17, 2004 — SEC Solicits AMF for Comments on STP Referendum
At the AMF Quarterly Meeting on March 17th, the Securities and Exchange Commission addressed the members of the Forum on Straight Through Processing. Recently, the Commission put forth a concept release in order to recieve comments from the industry on a new STP initiative.
March 17, 2004 — AMF Holds Quarterly Meeting
Over 40 AMF members from a variety of member firms attended the Forum’s Quarterly Meeting to discuss a wide breadth of buyside topics ranging from accounting to swaps to STP. During the course of the meeting, AMF committees held breakout sessions to address committee-specific topics. A meeting overview with committee committee reports will be published in the Forum’s April Newsletter.
March 17, 2004 — SEC Solicits AMF for Comments on STP Referendum
At the AMF Quarterly Meeting on March 17, the SEC addressed the membership of the AMF on a referendum relating to Straight Through Processing (STP). On March 11, 2004, the Commission put forth a Concept Release in order to receive comments from the industry on a new STP initiative. The STP Committee is currently reviewing the referendum and will begin to identify critical areas that need to be addressed. The AMF will submit a comment letter that addresses buyside issues.
March 4, 2004 — STP Committee Meets with SIAC on Connectivity
On March 4, the AMF met with Steve Romano of SIAC to discuss how SIAC’s Secure Financial Transaction Information ("SFTI") network can be used to promote industry connectivity. SFTI (which is industry-owned) is also connected to DTCC’s SMART network. SMART facilitates communications between and among broker-dealers and custodians concerning the settlement of securities transactions and related activities. The Committee discussed how these existing connections can be leveraged to solve buyside communication challenges. The STP Committee together with the staff of the AMF will arrange an educational event for members to learn more about the SFTI and its capabilities.
March 2004 — AMF Chairman Participates in FICC Meeting
Steve Mellas of Goldman Sachs Asset Management and chairman of the AMF joined FICC in a meeting to discuss the DTCC/ FICC proposed plans to help facilitate STP. FICC’s “New STP Institutional Settlement Model” approach calls for the a restructuring of FICC’s net settlement system to allow FICC to capture the dealer’s buyside trades without requiring institutions to join the clearing corporation by treating the dealer and institutional side of the trades discretely. The AMF will continue discussions with FICC regarding the role of the buyside in helping to achieve STP.
January 16, 2004 — Committee Identifies Challenges
The Pricing Committee held a meeting to discuss the challenges in pricing different security types and the benefits of the hard-to-price studies. In facing pricing challeges, the Committee anticipates meeting and working with brokers to solve the challenges. Specifically, the Committee will focus on pricing relating to Municipal Bonds, Small Cap Equities and Swaps. In addition, the Pricing Committee will examine the recommendations that have been put forth in the Heartland Letter.
January 14, 2004 — Swaps Committee Meets with Swapswire
In January, the AMF Swaps Committee met with Swapswire to discuss scheduling a demonstration of its latest version of a buyside confirmation system. The Committee intends to further educate Forum members on buyside requirements and address the current capabilities of the system. Swapswire has recently made a number of enhancements to its current confirmation system, including the addition of Interest Rate Swap capabilities.
May 1, 2003 — Compliance Committee Responds to AIMR
The AMF Compliance Committee responded to The Association for Investment Management and Research's ("AIMR") document on the "Leverage and Derivatives Provision for GIPS". The AMF response letter broke down the provisions, offering specific comments on needs for clarification. This letter, together with others submitted by industry groups, are being reviewed by AIMR.
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