ICMA Update for Members - June 2019
 
 

Two of the  biggest events of our year are now behind us - it was encouraging  to see so many of our members at the AGM and Conference in Stockholm last month where speakers and panellists addressed the main factors influencing change in our markets including geopolitical risk, the advance of Fintech and the sustainability agenda. A large audience also joined us in Frankfurt last week where we co-hosted the 5th Green Bond Principles and Social Bond Principles AGM and Conference and heard in a great deal more detail about developments in green, social and sustainability bond markets where we seem this year to have reached a tipping point. Still to come this month are our first one day conference on Fintech in fixed income and our annual Covered Bond Investor conference in Frankfurt.  

Meanwhile work on market data, SFTR, CSDR,  the transition from LIBOR and other market practice and regulatory issues continues and is covered in more detail on our website and also in our forthcoming quarterly report

Martin Scheck
Chief Executive
ICMA

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



New members in June
 
The following firms were admitted to ICMA membership in June 2019:
BofA Securities Europe Société Anonyme, Paris
ENGIE, Paris
ICBC International Securities Limited, Hong Kong
Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH, Frankfurt
NatWest Markets N.V., Amsterdam
 
Bringing the total number of ICMA members to 570 members in 62 countries.

Contact: sanaa.clausse@icmagroup.org

New faces on the ICMA Board

Six new board members were elected at the 51st ICMA AGM in Stockholm in May:
Amine Bel Hadj Soulami, BNP Paribas
Alessandro Brusadelli, UniCredit S.p.A.
Dr. Frank Engels, Union Investment Privatfonds GmbH
Kun Hu, Bank of China Limited
Michel Semaan, Crédit Agricole Corporate and Investment Bank
Janet Wilkinson, RBC Europe Limited
And two board members were reelected:
Joanna Cound, BlackRock Investment Management (UK) Limited
Roman Schmidt, Commerzbank AG
 
The ICMA board consists of 22 members, 21 of which are normally elected by the general meeting and one of which, the Chief Executive, is appointed by the board. The term of office of the 21 elected board members is three years.
 
Primary markets

ICMA and Russian association NFA have published a comparative review of practices and procedures in the Russian and international primary debt capital markets. This bi-lingual report is covers all the major aspects and mechanisms of the way bonds are issued in the international syndicated and Russian bond markets: lead manager organisational structure, appointment of lead managers in the Russian market, debt issues concept classification, overview of the debt issuance documentation and the procedures of its registrations, bookbuilding, pricing, settlements and other provisions of the bond issuance on the primary market.

Contact: ruari.ewing@icmagroup.org

Secondary markets

There is still time  to participate in  ICMA’s 3rd European IG Corporate Bond Secondary Market Study. This is intended to highlight market developments since the 2016 study, including market liquidity conditions, policy and regulation, factors affecting liquidity, trends and innovation in electronic trading, availability and use of data, and future sentiment, both from a buy-side and sell-side perspective.
All survey responses will be treated in the strictest confidence, and will only be represented in aggregate. All contributing firms will have the opportunity to preview the results and review the draft report before publication. 

The surveys take approximately 15-20 minutes to complete and naturally the responses will be treated in the strictest confidence.
IG Corporate Bond Market Study Buy-side
IG Corporate Bond Market Study Sell-side
We are also conducting individual interviews to supplement the qualitative data provided through the survey, we would like to involve you,  please get in touch to arrange a time.

Contact: andy.hill@icmagroup.org

Repo and collateral

On 27 May, ESMA issued a consultation paper on draft Guidelines in relation to SFTR reporting. The consultation paper itself was published alongside an updated and consolidated version of the SFTR Validation Rules. Both documents form part of the so-called Level 3 measures which ESMA is mandated to adopt and which serve to provide further guidance for the industry in relation to SFTR implementation, beyond the SFTR itself and the related technical standards. The deadline for stakeholders to submit a response to the consultation is Monday 29 July 2019. ICMA will be responding to this through its ERCC SFTR Task Force and will publish a dedicated SFTR update.
 
The 37th ICMA European Repo Market Survey is under way, with firms invited to submit their data on  repo business outstanding  at close of business on Wednesday, 5 June 2019. The survey is open to anyone conducting repo business in Europe, simply complete and submit the relevant survey form.
 
The repo FAQs were substantially revised and updated earlier this year and are a source of useful information on the product and the market, at levels of sophistication ranging from ‘What is a repo?’ to ‘Do changes in haircuts/margins exacerbate pro-cyclicality?’
 
Contact: alexander.westphal@icmagroup.org

Sustainable finance

At the 5th Annual General Meeting and Conference of the Green & Social Bond Principles in Frankfurt on 13 June, the Executive Committee announced publications providing key guidance to complement the Principles as well as a new Advisory Council. The Principles themselves  remain unchanged (2018 versions remain applicable).

The Harmonized Framework for Impact Reporting brings together in one publication a series of impact reporting frameworks for eligible green categories covering several sectors, released since 2017: Sustainable Water and Wastewater Management Projects, Sustainable Waste Management and Resource-Efficiency Projects, Clean Transportation Projects and Green Building Projects.
Green Project Mapping responds to market appetite for greater clarity on Green Project eligibility, regarding the contribution to the GBP’s environmental objectives, as well as mapping to other green taxonomies & classifications and related environmental standards. Additional information on how to interpret the Principles, has been assembled in an updated compilation of Q&As, the Guidance Handbook, covering Fundamentals, Governance & Membership, Core Components of the GBP/SBP, Market and Technical Issues and Other Market and Official Sector Initiatives. Updated 2019 editions of Green and Social Bonds: A High-Level Mapping to the Sustainable Development Goals and Working Towards a Harmonized Framework for Impact Reporting Social Bonds have also been published. 

ICMA has also published a document which summarises and comments on the EU TEG reports and status of EU sustainable finance plan.

Contact: greenbonds@icmagroup.org

ICMA in Asia-Pacific
 
The joint ICMA-NAFMII working group established in 2014  under the UK China Economic and Financial Dialogue , continues to make good progress on a guidebook for international investors on how to access the Chinese interbank bond market.

ICMA’s Asia- Pacific office facilitates two debt primary market committees in the region, the ICMA Asia Pacific Bond Syndicate Forum and the ICMA Asia Legal & Documentation Forum, which allow participants to shape cross-border primary market practices in Asia and provide Asian perspectives on European regulation and practice. There is also an emphasis on expanding support for the development of repo markets in the region, through workshops and courses – already held in the Philippines and Vietnam this year and as the EU readies itself for the 2020 implementation of EU Securities Financing Transactions Regulation (SFTR), ICMA and SGX will be providing a learning session in Singapore to cover progress on SFTR and implications for Asia-Pacific fixed income and repo markets.

Green and sustainable finance has become a major focus in Asia generally, with the Green Bond Principles and Social Bond Principles at the core of some of the official initiatives in the region, and in partnership with the Japan Securities Dealers Association we will hold the 3rd joint conference on Developments in Green, Social and Sustainability Bond Markets in Tokyo on 9 October 2019.
 
Contact: mushtaq.kapasi@icmagroup.org

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 Second Quarter 2019  published on 12 April. The ICMA Quarterly Report for the Third Quarter of 2019 will be published on 11 July.
 
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.

ICMA Podcast
 
The ICMA podcast, having proved popular with the first two episodes, is set to be a regular feature in ICMA’s communications. The ICMA Future Leaders interviewed a selection of speakers and  ICMA members at the AGM in Stockholm last month – listen to their thoughts on the future of capital markets and how to manage a career in them in these turbulent times from our website (or on iTunes or Spotify). We are also very pleased to bring you insights into the real-life experience of being LGBT+ in financial markets from David Finlayson, co-chair of the Credit Suisse LGBT and Allies Network.

Twitter & LinkedIn

We are increasingly using social media to post notifications of new reports and consultations, also events and courses – sign up to follow us on Twitter and Linked-In and be the first to know. 
 
 
twitter   linkedin
 
 
 

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
  
+33 1 70 17 64 70
GBPHelpdesk@icmagroup.org

 

ICMA Events
 
Almost 1000 of our members, press, officials and others joined us for the 51st AGM and Conference in Stockholm last month. Highlights of the event, including photos, videos and speeches by Verena Ross and  Alexander Stubb can viewed on the event website.
 
We’ve announced the date and the venue for the 2020 AGM- Vienna, 24-26 June – we hope you will be there. Sponsorship and programme enquiries for next year to shannelle.rose@icmagroup.org
 
 In Frankfurt, 3 weeks after our own AGM, ICMA co-hosted the Green Bond Principles and Social Bond Principles AGM in Frankfurt with the Green and Sustainable Finance Cluster Germany  - where financial professionals and officials met to discuss progress on sustainability classifications, emerging regulation, impact reporting and  growing markets with a spotlight on developments in Germany. Highlights and photographs here.  
 
There is a strong 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 27 June and there is still time to register for this. 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.
 
And on the same important theme - Developments in Green, Social and Sustainability Bond Markets - Japan and Asia – organised by ICMA and JSDA in Tokyo on 9 October will once again bring together issuers, underwriters, investors, policymakers, market infrastructure and service providers who are active in the Asian green and social bond markets.
 

ICMA Repo Workshops

For a full overview of the product and market we recommend our, two day Professional Repo and Collateral Management Course, which runs once a year (the 2019 course is in Frankfurt  on 11-12 September). Get a thorough introduction to all aspects of repo from our experienced course director and hear presentations from invited speakers from the market on topical issues.

Repo and securities lending under the GMRA and GMSLA (London June 26 to 28) has a slightly different focus, looking at how repo and securities lending transactions operate in the framework of the Global Master Repurchase Agreement (GMRA) and the Global Master Securities Lending Agreement (GMSLA), the two master agreements which are the essential foundations of these markets. 

Our two-day GMRA Masterclass  (London, 23-24 September) systematically reviews the Global Master Repurchase Agreement (GMRA) 2011 clause by clause, giving a thorough grounding in all of its key provisions and the most commonly-used Annexes. An experienced repo negotiator conducts a case study of a typical negotiation of Annex I, offering hints and tips on the most effective approach for both sell-side and buy-side counterparties. This one is more for legal and documentation professionals and assumes that you are already familiar with the core commercial, operational and legal aspects of repo and the GMRA.

Finally, if you are in a back office role and just beginning to think about the complexities of reporting repo transactions under the EU Securities Financing Transactions Regulation  (SFTR) then this one day workshop on the practical aspects of SFTR reporting (London, 18 July)  highlighting the challenges and suggesting solutions developed by the ICMA SFTR Task Force, could be for you, or the SFTR and Implications for Asia-Pacific Workshop in Singapore on 3 September.
 
If you are just starting to learn about repo (and you don’t have time for a longer course)  then the one day ‘Intensive workshop on repo & the European repo market’ (London, 27 September) could be for you - it’s a swift but detailed introduction to the product, how the market operates, the regulatory context and legal requirements, sign up for this one and understand the fundamentals.
 


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.

We have launched two new specialist programmes for the autumn.

Portfolio Construction follows on from ICMA’s Fixed Income Portfolio Management programme and builds on the concepts explained there surveying the range of techniques used to construct FI portfolios and using case studies and exercises to illustrate these.
 
The role of technology in financial markets introduces how technology is being used in and impacting the financial markets, considering the various stages of a trade and how technology is integrated within the business flow. It also looks at the impact of technology on market infrastructure throughout the trade lifecycle and outlines its likely future evolution.
ICMA EE also offers online qualifications in operations and fixed income, including the ICMA Fixed

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
 


 

For further information:
Tel: +44 20 7213 0310
info@icmagroup.org


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