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Throughout 2009, the Fixed Income Market group worked to make processes more secure, drawing inferences from the Lehman affair. Monitoring of fails at LCH.Clearnet SA and Euroclear France was systematically reviewed at each meeting, and work was undertaken to improve crisis management procedures at both institutions, including proposed new processes for unilaterally cancelling firm buy and sell orders.

Constructive progress was also made on reaching a shared view among post-trade industry participants on trade confirmation requirements.

The year ended with a strong link to front offices, capitalising on the involvement of ICMA. A new Electronic Trade Confirmation (ETC) working group was formed under the umbrella of ICMA and AMTE.

In addition, institutions were asked about their interest in the IDB project. In view of the prevailing low interest rate environment, the group worked on the introduction of negative interest rate repos. With its ongoing focus on harmonisation, the group is keen to see developments in the administration of market claims; a Euroclear France proposal is in the process of being approved.

The working group also responded to a request from the Dutch market on partial settlement.

The group favours an approach that is harmonised with decisions made in connection with T2S, namely opt-in by default and opt-out at the institution’s request. In the autumn, the Group monitored the launch of the “OAT strips fungibility” project.

By and large the Group’s meetings provide an opportunity to discuss MAC, Cross- MAC and FIOWP meetings and the ESES user forum, as well as monitoring topical issues such as T2S.