Asset Management: A voice for the buyside; Partnership with the sellside. Building relationships on Wall Street and across Washington.
The AMG is a unique leadership community of asset managers comprised of the largest and most influential market participants in the United States. The Group focuses on advancing market practices and enhancing legislative and regulatory effectiveness to improve the operations, efficiency, and trust in our markets.
Learn More about AMG
View AMG's Leadership Team
Lehman Brothers Inc. Trustee Letter Regarding Prime Brokerage Accounts
The Lehman Brothers Inc. Trustee issued a statement on 12/1/08 about the nature of protection available to prime brokerage accounts (PBAs) and the related PBAs protocol, including a reference to Lehman Brothers International (Europe). The Trustee had initiated this protocol, with the support of the Securities Investor Protection Corporation ("SIPC"), in an effort to allow PBAs to seek return of property to the extent permitted under applicable law and in view of the rights and obligations of affected parties.
Specified Trades Protocol 08-02 /
Schedules A, B, C
Protocol 08-02 relates to terminating certain specified and allocated trades done with Lehman Brothers in connection with mortgage-backed securities, which are known as "pool" trades. A SIPC Trustee was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. The SIPC trustee issued a statement on September 26, 2008 which states, "Counterparties with securities and commodity transactions with Lehman Brothers Inc. may close them out and submit claims to the Trustee."
Click here to download Protocol 08-02
Click here to download Schedules A, B & C
This Protocol, which applies to non-FICC MBSD members, addresses the process for terminating such outstanding trades that were effected by asset managers with Lehman Brothers. The SIPC Trustee has cooperated in the development and has approved this industry Protocol. SIFMA appreciates the assistance and cooperation of its members, especially the input of members of the Association's Asset Management Group, with respect to the process of identifying the essential components of Protocol 08-02. Although SIFMA may not provide legal advice, questions concerning the implementation of Protocol 08-02 may be directed to Douglas Taggart, Manager, Asset Management Group of SIFMA, at 212-313-1173 or dtaggart@sifma.org. This Protocol is voluntary and non-FICC MBSD member firms are not required to follow this Protocol. This Protocol is only intended to provide a uniform process for resolving the specified trades and does not modify any existing right or obligation under any preexisting contracts. Firms should seek advice of counsel with respect to their rights or obligations in connection with the specified trades.
Protocol 08-01
Concerning Schedule A or B Extension Requests
AMG Protocol 08-01 was developed by SIFMA's Asset Management Group and the SIPC Trustee who was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. This voluntary Protocol, which is for non-FICC MBSD members, addresses the process for terminating certain forward settling trades affected by asset managers with Lehman Brothers in connection with mortgage-backed securities ("TBA trades"). Schedules A and B that are part of the above-referenced Protocol are documents that under certain circumstances might be required to be submitted to the SIPC Trustee within ten (10) business days of the termination of TBA trades by users of the Protocol. In connection with the responsibility to submit Schedule A or B information within ten (10) business days, as suggested in the Protocol, SIFMA hereby informs its membership and other interested industry members that any request for an extension in order to fulfill this responsibility may be submitted via e-mail to the following address: termini@hugheshubbard.com. We appreciate your interest in this matter. Firms should seek advice of counsel with respect to their rights or obligations in connection with TBA trades. Questions regarding this 10/7/08 SIFMA notice may be directed to Elisa Nuottajarvi of the SIFMA staff at 212-313-1166.
Protocol 08-01
AMG Protocol 08-01 was developed by SIFMA's Asset Management Group and the SIPC Trustee who was appointed with respect to the liquidation of Lehman Brothers on 9/19/08. This Protocol, which is for non-FICC MBSD members, addresses the process for terminating certain forward settling trades effected by asset managers with Lehman Brothers in connection with mortgage-backed securities ("TBA trades").
This Protocol is voluntary and non-FICC MBSD member firms are not required to follow this Protocol. This Protocol is only intended to provide a uniform process for resolving the TBA trades and does not not modify any existing right or obligation under any preexisting contracts.
Firms should seek advice of counsel with respect to their rights or obligations in connection with the TBA trades.
SIFMA appreciates the assistance and cooperation of its members, especially the input of members of the Association’s Asset Management Group, with respect to the process of identifying the essential components of Protocol 08-01. SIPC and the SIPC Trustee have also cooperated in the development of this industry Protocol.
Although SIFMA may not provide legal advice, questions concerning the implementation of Protocol 08-01 may be directed to Elisa Nuottajarvi, Manager, The Asset Managers Forum, at 212-313-1166 or enuottajarvi@sifma.org.
As a follow-up to SIFMA's liaison with the SIPC Trustee, we are pleased to post the following links to protocols recently announced by the SIPC Trustee. These protocols are voluntary and AMG member firms are not required to follow them.
Protocol: Lehman Brothers Inc. Prime Brokerage Arrangements
Protocol: Lehman Brothers Inc. Outstanding Securities and Commodities Transactions
AMG's Goals
Working to create standards for SAS 70 audit reports, particularly in light of Sarbanes Oxley Section 404 requirements.
Emerging Issues
As a formal Group within SIFMA, the AMG works to be responsive
to emerging issues in the industry that may have
an impact on asset management firms. For example, the
AMG organizes and hosts “emerging issues” call-ins with
expert panelists on a variety of topics and trends, past topics
include the implementation of MiFID and the convergence
of the fixed-income and derivatives markets.
Latest Releases:
August 11, 2008
SIFMA Asset Management Group’s Steering Committee Announces New Chairs
July 31, 2008
SIFMA’s Asset Management Group Works with the Industry to Meet Goals of Expanded Derivatives Improvement Processing Plan
Industry Event on Derivatives Initiatives: Audio File to Download
Please note that this audio replay is for industry members and is not open to members of the press. To request a password, please contact Bianca Constance at bconstance@sifma.org.
June 9, 2008
Buy Side Implementation Plan
The
Buy Side Implementation Plan was jointly developed by International Swaps and Derivatives Association, Inc. (ISDA), Managed Funds Association (MFA), and Securities Industry and Financial Markets Association (SIFMA) submitted to the Federal Reserve Bank of New York. The plan will help enable market participants represented by the Operations Management Group to operate consistently with the relevant goals outlined in the March 27 Letter. (also see below)
March 27, 2008
SIFMA’s Asset Management Group to Play Key Role in Meeting 2008 Goals Outlined by Operations Management Group for Derivatives Trades Processing
Read Industry letter (pdf) with update to the Federal Reserve Bank of New York outlines goals, strategies and major benchmarks toward the continued improvement and streamlining of operational efficiency within the credit and equities derivatives market.
Operational Issues (AMF)
The Asset Managers Forum (AMF) serves as the AMG’s
voice on buy side operations and processing initiatives.The AMF is:
- Working on the development of a standardized fail report within its Fails Management Working Group;
- Promoting its STP Initiative that would help make “standing settlement instructions” available to counterparties and their agents on a real-time basis;
- Educating operations professionals on new derivatives processing initiatives;
- Advancing its Corporate Actions Best Practices program in cooperation with custodians, broker-dealers, vendors, DTCC and other industry utilities;
- Expanding its reach by working closely with organizations such as DTCC and SWIFT whose services are widely offered to diverse market participants;
- Providing educational training classes to members;
- Providing workshops, lunch and learns and other events on current industry topics.
Outreach and Networking
One of the benefits of membership in the AMG is the opportunity to build relationships with industry peers. The AMG is a bridge-builder between industry members and other constituencies that play a vital role in the financial markets. The AMG is:
- Developing ongoing relationships with regulatory and legislative bodies and with key market participants to improve the operations, efficiency, and trust in our markets.
- Building direct relationships with segments of the Street that are most relevant to AMG’s advocacy activities; most notably, these segments currently include rating agencies, exchanges and accounting policy-makers.
- Implementing Roundtables for CEO’s and other senior executives at buy side firms to discuss the “business of the business.”
- Reinforcing its relationship with the financial press by working with SIFMA’s Public Relations department.
- Communicating with its members through member-visits to ensure that a firm’s needs and issues are being addressed. AMG Steering Committee members will be routinely requested to suggest creative member-driven agenda items for the four AMG Steering Committee meetings scheduled to be held in 2007.
