ICMA AGM and ICMA Board
ICMA held its AGM on 22 July, in written format due to the pandemic, at which the 2019 accounts were approved, auditors appointed and statutes changed to allow for virtual participation in future AGMs. The following new board members were elected:
Eila Kreivi, European Investment Bank
Heleen van Rooijen, Nederlandse Waterschapsbank
Gareth Allen, UBS
Ingo Mainert, Allianz Global Investors
View full ICMA Board
Save the date for the 2021 ICMA AGM and Conference
We hope to welcome members in Vienna from May 19 to 21
On 28 July ESMA announced
that it is working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022. ESMA confirms that this is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs, and came as a request
from the European Commission.
ESMA aims to publish the final report on further postponing the date of entry into force of the RTS on settlement discipline by September. Following the endorsement of the RTS by the European Commission, the Commission Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council. Read more…
SFTR reporting goes live
Reporting under the Securities Financing Transactions Regulation (SFTR) started on 13 July. In the first week, firms reported 1,435,727 SFTs with a cash value of EUR 14.3 trillion and collateral value of EUR 17.8 trillion. Repo (both repurchase transactions and buy/sell-backs) accounted for 398,006 transactions (27.7% of the total), a total cash value of EUR 13.5 trillion (94.7%) and collateral value of EUR 17.5 trillion (98.4%). For a detailed statistical breakdown of the data for the first two weeks of reporting please visit our webpage
Since 13 July, EU-incorporated and located banks and investment firms, as well as CCPs and CSDs, have had an obligation to report all new SFTs and subsequent life-cycle events to authorised trade repositories (TRs), who are responsible for validating the reports, reconciling the data and making the results available to regulators. All TRs authorised under SFTR - currently these are DTCC, Regis-TR, UnaVista and KDPW - are required to publish, every Tuesday, a set of summary statistics for the previous week. ICMA is collecting, aggregating and tabulating this data each week, and will provide regular detailed analysis in the form of charts and commentary, which will contribute to enhanced transparency of the repo market.
Benchmark reform – the transition to risk-free rates
ICMA continues to engage with regulators and members on the global issue of benchmark reform The most recent information on ICMA’s activities and links to official sector and other information and materials, are available on the ICMA Benchmark reform and transition to risk-free rates webpage
. Resources relating specifically to developments in Asia Pacific can be found on our website. Jointly with APLMA, ASIFMA, and ISDA we recently published the IBOR Transition Guide for Asia
An official sector panel discussion on the transition to risk-free rates
, recorded on 25 June, features contributions from the European Central Bank, the European Investment Bank, the Financial Conduct Authority, the Federal Reserve Bank of New York and the Swiss National Bank on progress on the transition away from LIBOR and other IBORs and towards risk-free reference rates, with a focus on the international bond market.
An update on the transition from LIBOR to SONIA in the bond market
was published in the !CMA Quarterly Report for the Third Quarter 2020.
Following its departure from the EU on Brexit on 31 January 2020, the British Government formally notified the EU on 12 June that the UK will not agree to an extension of the transition period beyond the end of 2020. The deadline for agreeing on an extension for a further period of up to two years would have been at the end of June. Issues arising for ICMA members are discussed in detail in the Quarterly Report for the Second Quarter of 2020
The Green & Social Bond Principles released Sustainability-Linked Bond Principles
(SLBP) at their 6th Annual General Meeting on 9 June. These are voluntary guidelines for sustainability-linked bonds (SLBs) defined as forward-looking performance-based bond instruments where the issuer is committing to future improvements in sustainability outcomes within a predefined timeline. The financial and/or structural characteristics of SLBs can vary depending on whether the issuer achieves those predefined Sustainability Performance Targets. Within these parameters, the use of funds for SLBs are intended for general purposes rather than for underlying sustainable projects as in the case of existing green, social and sustainability bonds.
The Green & Social Bond Principles also released the 2020 update of the Social Bond Principles
providing expanded social project categories and additional target populations, and also incorporating recent guidance for social bonds addressing the COVID-19 crisis.
The following publications were also updated:
Harmonized Framework for Impact Reporting
(now including guidance for biodiversity)
Working Towards a Harmonized Framework for Impact Reporting for Social Bonds
High-level Mapping of Green, Social and Sustainability Bonds to the Sustainable Development Goals
External Review Guidelines
A Chinese translation
of the ICMA publication Sustainable Finance: High-level definitions
was produced in May.
Updated FinTech mapping directory
ICMA has updated its mapping directory of technology
solutions for repo and cash bond operations. The directory now lists a total of 159 solutions, compared to 130 solutions last year and 87 solutions when it was first launched in November 2017. It is divided into 10 categories comprising collateral management, corporate actions, exposure agreement, intraday liquidity monitoring and reporting, matching, confirmation & allocation, reconciliations but also ancillary areas such as static data and SSI, workflow and communication and KYC onboarding.
ICMA together with ISDA, ISLA, UK Finance, AFMA, Association of German Banks, LBMA and the International Islamic Financial Market has made a joint commitment to defining and promoting the development of a digital future for financial markets in a letter
sent to the Financial Stability Board, the International Organization of Securities Commissions and the Basel Committee on Banking Supervision.
, focusing on Article 7, Measures to address settlement fails, and in particular the mandatory buy-in (MBI) provisions.
, notably to questions on the use of identifiers (LEI, UTI, UPI), access to publicly available data, areas for AI-applications in the financial sector, and standardising concept definitions and reporting obligations.
on its First Report on Central Clearing Solutions for Pension Scheme Arrangements. The ERCC has limited its response to the Questions related to Section 6.3 of the report: The market-based repo solution.
More detailed information on ICMA’s Market Practice and Regulatory Policy work on behalf of members can be found in the
The ICMA Quarterly Report for the Fourth Quarter 2020 is due to be published in October.
For a full list of ICMA’s Market Practice and Regulatory Policy experts and their areas of expertise