ICMA Update for Members - December 2019

2019 will be remembered by us at ICMA as a successful year for the association focused on the main topics of concern for our continually growing membership in Europe and Asia. One of the key themes of the past 12 months has been the growing demand for the world of finance to take action against climate change. At the same time we are in an exciting phase of FinTech developments that are changing the way we do business. Another major theme is the potential demise of LIBOR as the 2021 deadline approaches, and 2019 saw continued progress on the transition to Risk Free Rates in the bond market. We have also continued to focus on the implications for members of capital market fragmentation, including Brexit. And we will remember 2019 for the many consultations and the preparation for a number of regulatory changes coming next year that will have profound effects on the market, notably the introduction of mandatory buy-ins under CSDR and enhanced reporting for repo transactions under the SFTR. 

We have focused extensively on these and other topics in 2019 and expect them to continue into 2020 and beyond. ICMA has been engaged in discussions both with its members and with regulators, and together we have worked hard to find raise awareness, find solutions and look for compromises between regulators’ objectives and the business of market participants. And all of this against a challenging backdrop for our members, with bank losses leading to redundancies, negative yields and low returns, the threat of market fragmentation and geopolitical uncertainty across many parts of the world.

We are seeing a new capital market landscape evolving and over the next decade we will be able to judge how well the last 10 years of regulatory reform has served its purpose. 

This final update of 2019 summarises some of our most recent activities and flags up events to watch out for next year. We thank you all for your support this year and look forward to connecting with you in 2020 through our, working groups committees and conferences, and social networks. 

Martin Scheck
Chief Executive

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

New members in 2019
In total 50 firms joined ICMA in 2019 from 18 countries, bringing the total membership to date to 584 institutions in 62 countries.
Contact: sanaa.clausse@icmagroup.org

Mandatory buy-ins and changes to ICMA’s buy-in rules
Our recent study on the expected impact of the new mandatory buy-in regime on the European bond market, to be introduced in 2020 under the EU Central Securities Depositories Regulation (CSDR), indicated that members across the market expect the new regime to have a negative impact on bond market liquidity and efficiency, particularly at the lower end of the credit spectrum. 

To support the implementation of these new mandatory buy-in provisions, we intend to update the ICMA Buy-in Rules. Members will be consulted on the changes to these provisions early in 2020.
Contact: andy.hill@icmagroup.org

Master Regulatory Reporting Agreement
ICMA has jointly published the Master Regulatory Reporting Agreement (MRRA), in association with AFME, FIA, ISDA and ISLA. It provides users with a template agreement for documenting regulatory reporting arrangements in relation to derivatives and securities financing transactions entered into under industry standard documentation, such as the Global Master Repurchase Agreement (GMRA). See more on our website.
Contact: lisa.cleary@icmagroup.org

Primary Market Handbook update
ICMA has published a new Appendix A5a on deal announcements in the ICMA Primary Market Handbook. 
Contact: ruari.ewing@icmagroup.org

Repo and collateral
ICMA’s ERCC published an updated memorandum outlining recommendations for repo market best practice on 1 October 2019 after the transition from EONIA to €STR.

The results of the 37th semi-annual survey of the European repo market, showing the amount of repo business on a day in June, set the baseline figure for European repo market size at EUR 7,761 billion. The 38th survey will measure the size of the repo market on Wednesday, 11 December – participation is open to all firms active in the repo market and the forms can be accessed from the ICMA website.

Through its SFTR task force ICMA is supporting the implementation of new extensive reporting requirements for repo transactions under the Securities Financing transactions Regulation (SFTR) in 2020. Market practice documentation is in production including SFTR sample reports and an Overview of Repo lifecycle events; new Guidelines on SFTR reporting for repo will be published early in the new year. 

The next SFTR workshop - repo reporting in practice will run in London on 22 January 2020.
Contact: alexander.westphal@icmagroup.org

MiFID II/R two years on
A new report on the impact and challenges of MiFID II/R for the international bond markets two years after the regulatory regime took effect.
Contact: gabriel.callsen@icmagroup.org

Sustainable finance
The European Council and the European Parliament reached a political agreement on the Taxonomy Regulation on 18 December 2019. 
An ICMA briefing note summarises the main provisions of the Taxonomy Regulation, including the proposed classification framework, which will become a necessary reference for future sustainable financial products when they are marketed or when they are being defined by Member States or the European Union. 

In October, the GBP SBP Executive Committee set up a working group on 'Climate Transition Finance' to review recent transactions that aim to finance the transition to a low carbon economy (e.g. 'transition bonds') and consider potential guidance that may be provided on this topic. The implications of recent innovative sustainability-linked transactions in the bond markets that follow comparable developments in the loan markets based on the Sustainability-Linked Loan Principles (SLLP) released earlier this year are being considered.

The 2019/2020 Advisory Council (AC) composition was announced in mid-October, its purpose is to complement and provide input to the Executive Committee of the GBP SBP and to support and inform its market outreach.

During summer 2019, the Research Working Group undertook 3 surveys among the GBP SBP Members to evaluate the benefits of the Green, Social or Sustainability (GSS) Bond Market and to get a better understanding of the related organisational and strategies pursued by the issuers, the investors and the underwriters. 

ICMA has established a Sustainable Finance Cross Coordination Committee to make sure that sustainability is considered in all areas of its policy work.
Contact: greenbonds@icmagroup.org

Asset Management & Investors Council (AMIC)
The AMIC held its second conference of 2019 in London in November, featuring some of the market issues which most concern its members, notably sustainability, pensions at a time of negative yields and the securitisation market. The AMIC Annual Review picks up some of these themes with contributions from buy-side members. Also check out the ICMA podcast with Bob Parker the AMIC Chair on negative yielding debt and its consequences for investors.
Contact: arthur.carabia@icmagroup.org

Fintech mapping
ICMA has just published a mapping exercise on Distributed Ledger Technology regulatory guidance, legislative initiatives, as well as related strategy papers and recent publications in selected jurisdictions across Europe, North America, and Asia-Pacific. Its aim is to provide a sense of the direction of travel, anticipating future regulatory DLT guidance and legislative change, which will pave the way for broader adoption of DLT. 
Two mapping directories have also been updated, these are designed to give members an overview of which Electronic Trading Platforms and Technology Solutions for Primary Markets are commercially available for bond markets. They include brief descriptions of the platforms/products supplied by their providers. Neither directory is an exhaustive list of providers in the market, providers wishing to be included are welcome to get in touch.
Contacts: gabriel.callsen@icmagroup.org; rowan.varrall@icmagroup.org
Responses to consultations
ICMA responded to ESMA’s consultation paper on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments. While the ESMA consultation focuses specifically on the development of a Consolidated Tape for equity products, ICMA’s response highlighted market considerations surrounding a CT for EU cash bond markets and its benefits.
ICMA has also responded to the ESMA Consultation on the Market Abuse Regulation and to the EU Benchmark consultation.

Recordings of briefing calls for Asia-Pacific members on the transition to risk-free rates in the bond market by Katie Kelly (26-September) and Brexit by Paul Richards (24 October) are available for download (password required).
On 9 January there will be a webinar for APAC members on the impact of the EU CSDR mandatory buy-ins on the corporate bond market covering the main points as they affect firms based outside Europe.
ICMA together with ISDA and ASIFMA has submitted a letter to the People’s Bank of China, on proposals for strengthening the enforceability of close-out netting during resolution of Chinese SIFIs. 
Early next year ICMA and NAFMII will publish their Guide to the China International Bond Market for Oversea Investors in both Chinese and English.
We are extending the ICMA Future Leaders network active in Europe for over 4 years to the Asia-Pacific region, it’s open to all employees of ICMA member firms but is particularly aimed at individuals in the early stages of their capital markets careers, to help them build their own networks and access ICMA’s services. The first event is scheduled for Hong Kong at the end of February, get in touch with Asia-Pacific office to find out more.
Contact: apac@icmagroup.org
Listen to new episodes of the ICMA podcast from our website or your podcast provider.

Negative yielding bonds | The demise of LIBOR | The financial imperative for investing with women | The European repo market

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



ICMA Events 2020

After a record year in 2019, with more events, in more locations, attended by more of our members the 2020 events schedule is already taking shape.

You can register now for these conferences in 2020:
ICMA and Swiss Sustainable Finance joint conference: Developments in the green bond markets – the Swiss perspective Zurich, 29 January
11èmes Rencontres des Professionnels des Marchés de la Dette et du Change Paris 30 January
India Securities Summit London, 13 March

And for our workshops on the repo market:
Intensive one-day workshop: Repo & the European repo market London, 5 February
Repo and securities lending under the GMRA and GMSLA London,11-13 February
SFTR workshop - repo reporting in practice Frankfurt, 18 February

Our Introduction to green bonds workshop will run in Australia for the first time in March in a one day format giving a practically oriented introduction to the essentials of green bonds and the green bond market.
Melbourne, 3 March
Sydney, 4 March

The next two day Introduction to green bonds workshop in London is on 25 & 26 February. 

And don’t forget to save the date for these conference in the New Year! 
ICMA Womens’ Network, Madrid, 11 February 
HKMA and ICMA 2020 Sustainable Finance Conference, Hong Kong, 20 February
ICMA Future Leaders, Hong Kong, 27 Feb 
Secondary Markets Forum Amsterdam, 4 March 
ICMA Future Leaders, Paris, 5 March
Asset Management and Investors Council Conference, Paris, 11 March.


ICMA Education 2020

The calendar for our 2020 courses is now online!

Registrations are now open for all our courses in Primary Markets, Secondary Markets, Operations, Repo and Collateral and Green Bonds, including the popular Fixed Income Certificate (FIC), compulsory in many ICMA member firms; the Primary Market Certificate (PMC), consistently described as one of the best of its kind in our industry; the Operations Certificate Programme (OCP), which examines the connectivity between securities and derivatives; ICMA and ISLA’s combined training in repo and securities lending operating under the frameworks of the GMRA and the GMSLA; and ICMA’s Introduction to Green Bonds.

For more information and to book, visit our website or email education@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's Market Practice and Regulatory Policy work on behalf of members can be found in the ICMA Quarterly Report for the Fourth Quarter 2019, published on 10 October. The ICMA Quarterly Report for the First Quarter 2020 is due to be published on 10 January.
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.

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 LinkedIn and be the first to know. 


For further information:
Tel: +44 20 7213 0310

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