ICMA Update for Members - March 2019

We have been continuing to help members prepare for Brexit, by working with members in our Committees, holding conference calls with record levels of participation, updating our website and the FAQs as and when necessary, and monitoring the progress made by the UK and the EU27 (as a whole and at national level) in dealing with specific cliff-edge risks which could cause market disruption when passporting between the UK and EU27 ceases. Significant progress has been made by the authorities, though risks remain, particularly if the UK leaves the EU without a deal.

Martin Scheck
ICMA Chief Executive

If you have any comments on this update or its contents, please contact us at: ICMACorporateCommunications@icmagroup.org

New members in March
The following firms were admitted to ICMA membership in March 2019.

Advokatfirmaet BAHR AS, Oslo
African Export Import Bank, Cairo
Banca Credinvest SA, Lugano
Barclays Bank Ireland PLC, Dublin
Broadridge Financial Solutions Limited, London
Central Securities Depository (GH) Limited, Accra
CMS Hasche Sigle Partnerschaft von Rechtsanwälten und Steuerberatern mbB, Berlin
D2 Legal Technology Ltd, London
Dentons Europe LLP, Frankfurt
Industrial and Commercial Bank of China (Asia) Limited, Hong Kong
MUFG Securities (Europe) N.V., Amsterdam
Société Générale Global Solution Center Private Limited, Bangalore
Valiant Bank AG, Bern
VTB Bank (Europe) SE, Frankfurt

Bringing the total number of ICMA members to 565 members in 62 countries.

Contact: sanaa.clausse@icmagroup.org
New chair of ICMA Iberia region

We are very pleased to welcome Carlos Muñiz-Morell of Banco Santander, S.A. as the new Chair of the ICMA Iberian Regional Committee  
Primary markets

The ICMA Primary Market Handbook, which sets out ICMA’s recommendations, guidance and standard language and documentation, generally relating to offers of syndicated international bonds in the primary market, has been updated online. A hard-copy update will be sent to the ICMA Primary Market Handbook hard-copy subscribers in due course.

In a podcast recorded on 21 February, ICMA’s Charlotte Bellamy introduces the changes to the EU’s prospectus regime in the new Prospectus Regulation which is due to be fully implemented in July 2019, and highlights some of the main changes which will affect the wholesale investment grade bond market.

Contact: ruari.ewing@icmagroup.org
Secondary markets

The first ICMA Secondary Market Forum, which was held in Paris, brought together more than 100 experts from the European fixed income market, representing banks and broker-dealers, investors and asset managers, as well as trading venues and technology providers to participate in discussions on the critical issues facing the European bond markets and the key drivers of evolving market structure. Issues and topics covered included MiFID II/R implementation and its impact, the unwinding of ECB quantitative easing, the practical implications of Brexit, developments in technology and electronic trading, as well as the rapidly evolving economic and geopolitical landscape. Robert Ophèle, AMF Chairman spoke at the forum on "Trading in fragmented capital markets"

Contact: andy.hill@icmagroup.org
Repo and collateral

The Securities Financing Transactions Regulation (SFTR) is designed to encourage greater transparency in repo and securities lending and borrowing markets. It will introduce an extensive reporting regime for these transactions in Europe. The February SFTR Update covers the timetable for SFTR implementation and the work of ICMA’s SFTR Task Force. Alexander Westphal from ICMA's Market Practice and Regulatory Policy team gives an introductory overview to the SFTR in this podcast.

NEW COURSE - We expect to launch a new one day cause on SFTR implementation shortly, the first one will be held in London on 2 July.

Contacts: alexander.westphal@icmagroup.org; andy.hill@icmagroup.org

Asset management

On 28 March ICMA’s Asset Management and Investors Council (AMIC) submitted a response to ESMA’s consultation on liquidity stress testing in UCITS and AIFs. AMIC is supportive of ESMA’s overall approach. However, AMIC cautions that some implementation time is necessary for firms to comply with the requirements. AMIC proposes 18 months implementation time for firms. AMIC also cautions against the use of the bid-ask spread as a liquidity measure for securities and warns that a lack of data on underlying investors make redemption stress testing difficult for asset managers.

Contact: david.hiscock@icmagroup.org

Sustainable finance
ICMA was delighted to have been able to contribute to the new Sustainability Linked Loan Principles (SLLP) launched in March by the Loan Market Association, the Loan Syndications and Trading Association and the Asia Pacific Loan Market Association. The SLLP were developed by a working party, consisting of representatives from leading financial institutions active in the sustainable lending market, with the support of ICMA.

The sustainability linked loan product enables lenders to incentivise improvements in the borrower's sustainability profile by aligning loan terms (for example, margins) to the borrower's performance against ambitious, pre-determined sustainability performance targets. The SLLP provide a global framework that is intended to enable all market participants to clearly identify and understand the key characteristics of sustainability linked loans.
Two Green Bonds Executive Education Courses were held in Bangkok for the first time, given by ICMA and the IFC (a sister organisation of the World Bank). The courses provided a thorough and application-oriented introduction to the essentials of green bonds with the aim of helping Thai bankers, legislators and other actors to learn more about developing and offering green financial products, and help grow the green investments space in Thailand and in neighbouring countries. The course was an IFC – ICMA Initiative, part of the IFC Green Bond Technical Assistance Program to support Green Bond Market Development. Supported by SECO (Swiss State Secretariat for Economic Affairs), Sida (Swedish International Development Cooperation Agency) and the Luxembourg Ministry of Finance.
Registration is open for the 2019 Green Bond Principles and Social Bond Principles Annual General Meeting and Conference, in Frankfurt on 13 June.

The event will be co-hosted by the Green and Sustainable Finance Cluster Germany and ICMA in Frankfurt, returning to Europe at a time of important EU official initiatives on sustainable finance, after a highly successful annual meeting in Hong Kong last year. The annual conference will be part of a ‘green & sustainable week’ in Frankfurt, with a Green Bond Training Course, an official sector working group meeting and the Excom and working group meetings for the GBP already scheduled.

The conference will cover topical areas including new corporate initiatives, sustainability classifications / taxonomies, emerging regulation, impact reporting and wider implications for corporate reporting, growth markets and a spotlight on developments in Germany. While focused on sustainable bond markets, many of these discussions will be of relevance to other asset classes, including related products such as sustainable loans. 
Open to all professionals and officials interested in the future of these fast-growing markets, the event will be relevant for investors, issuers, intermediaries, external reviewers, policy makers and market supervisors, stock exchanges, index and data providers, law firms, and other important stakeholders.

Please note that attendance at the AGM is restricted to members and observers of the GBP and SBP. There is still time to apply for member or observer status, which delivers a wide range of other benefits.

Contact: greenbonds@icmagroup.org

Regulatory responses

These include:

18 March
ICMA Corporate Issuer Forum response to ESMA consultation paper - Guidelines on Disclosure Requirements applicable to Credit Ratings

13 March
ICMA European Repo and Collateral Council response to BCBS consultation on leverage ratio disclosure

22 February
ICMA response to the European Commission's consultation on the usability of the EU taxonomy

19 February
ICMA response to ESMA consultation on integrating sustainability risks and factors in MiFID II (ESMA35-43-1210)

ICMA AMIC responds to ESMA consultation on integrating sustainability risks and factors in the UCITS Directive and AIFMD

ICMA Legal and Regulatory Helpdesk numbers (ICMA members only)
+44 20 7213 0341 (London)
+41 44 360 5237 (Zurich)
+852 2531 6590 (Hong Kong)
For legal queries: legalhelpdesk@icmagroup.org
For market practice and regulatory policy queries: regulatoryhelpdesk@icmagroup.org
Green Bond Principles and Social Bond Principles Helpdesk (ICMA members and members/observers of the Principles only)
+33 1 70 17 64 70



Market Practice and Regulatory Policy
For a full list of ICMA’s Market Practice and Regulatory Policy experts and their areas of expertise click here.
More detailed information on ICMA Market Practice and Regulatory Policy work on behalf of members can be found in the ICMA Quarterly Report for the First Quarter 2019 published on 10 January. The ICMA Quarterly Report for the Second Quarter of 2019 will be published on 11 April.
The ICMA Regulatory Grid which summarises proposed financial regulations affecting the cross-border securities market in Europe is available for download on the locked members’-only area of the ICMA website.  It is a working draft provided by the ICMA Market Practice and Regulatory Policy team and is periodically updated.

Future Leaders - How to survive and thrive in your capital market career

The next Future Leaders event will be held in Amsterdam on 25 April, featuring a discussion between a panel of established capital market professionals about their own career experiences, including how to navigate employment opportunities and setbacks, with their top tips for success in a competitive international business environment.

Networking drinks at ABN Amro's bar on the 23rd floor will follow the discussion. Open to all ICMA members.

ICMA Events
The focus is now on preparations for the ICMA AGM and Conference in Stockholm from 15 to 17 May. The agenda is virtually complete, with strong Nordic participation on panels covering major aspects of capital market activity and looking at big picture themes around the geopolitical environment, benchmark reform and progress with the green, social and sustainability agenda.

Confirmed speakers include: Stefan Ingves, Governor and Chairman of the Executive Board, Sveriges Riksbank; Aerdt Houben, Director, Financial Markets, De Nederlandsche Bank N.V.; Verena Ross, Executive Director, European Securities and Markets Authority; Christian Luiga, EVP and Group CFO, Telia Company; John Berrigan, Deputy Director-General, Financial Stability, Financial Services and Capital Markets Union, European Commission; Professor Roman Beck, Head of European Blockchain Center, IT University of Copenhagen; Alexander Stubb, Vice President, European Investment Bank and Former Prime Minister & Finance Minister of Finland.

All ICMA members are welcome to attend the AGM and conference, and each member firm has an allocation of free places for the event.

Register via the website.

There is a green social and sustainable element to the Covered Bond Investor Conference, hosted by the ICMA Covered Bond Investor Council and The Covered Bond Report in Frankfurt on 29 June. Other topics for the conference include the Covered Bond Directive and ESN Developments, developing covered bond structures and investor sentiment in the post CBPP3 era.

ICMA Executive Education (EE)

The full 2019 schedule is online so you can book your place now for any of our flagship programmes in Primary Markets, Secondary Markets and Operations.

There are still places on one of ICMA’s most popular flagship courses on 20-24 May in London, the Primary Market Certificate gives a thorough introduction to the process of bond issuance and includes sessions from current professionals active in the market.

ICMA EE also offers online qualifications in operations and fixed income, including the ICMA Fixed Income Certificate (FIC), available every month on our online platform.

To book your place on ICMA EE online or classroom courses visit www.icmagroup.org/EE


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