We would like
to thank you for your contribution and support throughout the year 2008 and
wish for you and your loved ones a prosperous and productive New Year.
From
the President’s Desk
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FINANCIAL SERVICES COMMISSION(FSC)
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The JSDA Officers attended
an introductory meeting with the new Executive Director of the FSC, Mr. Rohan
Barnett, on January 21.Another
meeting with the FSC was convened on February 6 and discussions held on the
following issues:
·Unit Trust
·National Payment Systems (CSD & RTGS)
·Foreign Exchange Transactions
·Issues related to the Sophisticated Investor
·Capital Standards (Margin R)
·FSC Fees
Mr. Rohan Barnett
has pledged to allocate the resources of the FSC towards resolving the Unit
Trust issue.
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BANK OF JAMAICA
(BOJ)
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National Payments Systems
A
CSD/RTGS Question & Answer document has been circulated to the membership.Of note, intraday liquidity will now be
provided to all participants of the RTGS ‘via bilateral collateral
arrangements in which a 25% market value ‘haircut’ will be applied to the
collateral.’With
respect to the treatment of REPO’s in the CSD, the JSDA Sub-Committee is
proposing that ‘Broker/Dealers consider setting up Trust Companies or other
forms of Special Purpose Vehicles with TRNs as the sole entity holding
securities for their retail clients
in the CSD, using the pledge option;’ and that ‘Broker/Dealers create
individual accounts in the CSD for their institutional clients and counter
parties (other broker/dealers) and
utilize the pledge option for these trades.’The BoJ will be dispatching schedules for the immobilization of
existing securities.
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ALTERNATIVE CAPITAL ADEQUACY MODEL
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The IMF has
expressed some concerns with respect to the Margin R model.The JSDA Sub-committee should meet with the
relevant parties to address the concerns.
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JSDA PUBLIC
EDUCATION PROGRAMME
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Publication of Industry Data
The
structure for the publication of the industry data will take the form of a
simplified balance sheet.The
Sub-Committee will meet to develop a draft/template which will be sent to the
Council for review.It is estimated
that the cost for publication will be approximately $250,000.00.Discussions to this end are currently
ongoing with the Herald and the Gleaner.
Marketing Plan
The
membership has proposed that the Association invite Mr. Rohan Barnett,
Executive Director of the FSC to be the guest speaker at the JSDA annual
members’ luncheon.Members are being
encouraged to invite their clients to the function.
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BUSINESS
ENVIRONMENT
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The dialogue with ICAJ
with respect to the development of the yield curve continues.The yield curve for December 2008 will be
released shortly.
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GENERAL
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Development of a Code of Conduct for JSDA Members
The President has
proposed that there should be a code of conduct for the Association which
would include, inter alia, standards/eligibility for membership.
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