The Asset Management Group (AMG) of the Securities Industry and Financial Markets Association (Sifma) today issued the following statement on today's publication by the New York Federal Reserve of the legal and regulatory analysis of credit default swap central counterparties with respect to customer access to central clearing platforms:
"SIFMA's Asset Management Group believes that establishing access to central counterparties for asset managers is directly related to the goal of further mitigating risk concerning the OTC credit derivatives market. The Asset Management Group of SIFMA encouraged this independent review of complex legal and operational issues that affect the segregation and portability of initial margin in CDS transactions. Protecting asset managers' rights to recover the assets they have pledged in the event of counterparty default is an essential component of the enhanced processing changes that industry members have defined in recent discussions with regulators. We welcome this important study and look forward to continuing our work with regulators and other industry groups on CDS-related issues."
SIFMA's AMG represents U.S. asset management firms whose combined assets under management exceed $20 trillion. The clients of AMG member firms include state and local pension funds, universities, and individuals saving for retirement. AMG members conduct their businesses as fiduciaries for their clients even if they are part of a larger financial organization.