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ICMA Update for Members November 2010

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

As this update shows the pace of regulatory change has certainly not slowed down in past weeks and we have been kept busy responding to consultations in the market areas where we have an interest, and keeping you, our members informed, on the critical developments which will affect our market.

As ever, if you would like to comment on anything you see in this newsletter, or wish to have more in-depth briefings on the work described here, I encourage you to contact me or one of the ICMA team whose contact details are given below.

Martin Scheck
Chief Executive
International Capital Market Association
New members
Market practice and regulatory update
Further moves to strengthen ICMA's regional representation
Senior representatives
Upcoming meetings and events
New corporate finance qualification for the Chinese market
ICMA Education
ICMA AGM and Conference 2011 save the date
New members

The following firms were admitted to ICMA membership during October and November; this brings the number of new member firms this year to 48 in total.

ABB Capital B.V., Amsterdam
Aktiebolaget Svensk Exportkredit, Stockholm
Al Khaliji Commercial Bank Q.S.C., Doha
Australian Office of Financial Management, Canberra
Banco BTG Pactual S.A., Rio de Janeiro
Nederlandse Waterschapsbank, The Hague
Robeco Institutional Asset Management B.V., Rotterdam
Tradeweb Europe Limited, London
Market practice and regulatory update

Primary markets: ICMA's Legal & Documentation Committee has responded to HM Treasury's consultation on the future of UK financial regulation, under which the FSA will be separated between the Prudential Regulatory Authority, which will become a subsidiary of the Bank of England, and the Consumer Protection and Market Authority (CPMA), which will become a conduct of business regulator. In our response, we have focused on the proposals to transfer the UK Listing Authority (UKLA), the primary market regulator, to become a UK company regulator in a separate Government Department.

We are holding a round of individual meetings with national regulators (starting with the CNMV in Madrid, CSSF in Luxembourg and BaFIN in Frankfurt) on CESR/ESMA's forthcoming work on Level 2 of the review of the Prospectus Directive.

Following two Allocation Roundtables involving issuers, lead managers and investors, we have added Explanatory Note XIII on pre-sounding, bookbuilding and allocations, to the ICMA Primary Market Handbook.

ICMA has responded to a US Internal Revenue Service consultation on 'Information reporting and withholding under the Hiring Incentives to Restore Employment Act (HIREA)' which deals with TAX implications for global bearer bond issues under US legislation.
Contact: Ruari Ewing

Secondary markets: We are analysing the responses to a questionnaire sent to all ICMA members on the usage of, and on the need for any improvements in, the ICMA Secondary Market Rules and Recommendations. The responses indicate that the Rules and Recommendations are widely used across the market as a whole. Taking account of the responses we have received, we plan to invite the respondents to join a reformed Secondary Market Practice Committee to review our Secondary Market Rules and Recommendations and make proposals for any improvements.

A series of very well attended seminars for our members on the European Commission's proposed review of MiFID were held in: Zurich at SIX; in Luxembourg at the EIB; and in Milan at Banca IMI in cooperation with ASSIOM Forex. A roundtable on the MiFID review, the first of a series, was held at 23 College Hill for our members in London. Further events will be held around Europe charting progress with the MiFID review. We plan to respond to the forthcoming European Commission Consultation Paper on MiFID with other trade associations, and in consultation with our own secondary market experts.

We are also currently discussing with other trade associations the market's concerns about Article 13 of the proposed Regulation on Short Selling, which relates to the buying-in of securities.
Contact: Lalitha Colaco-Henry

Asset management: ICMA's Asset Management and Investors Council (AMIC), has set up a Valuation of Illiquid Assets Working Group. With the help of the Working Group, the AMIC has submitted a response to the IOSCO Consultation Paper on Intermediary Internal Controls Associated with Price Verification of Structured Finance Products and Regulatory Approaches to Liquidity Risk Management. AMIC's response focuses on valuation governance arrangements for funds, particularly in the case of valuation of complex products such as ABS and structured products.

The AMIC has also responded to the FSA Consultation Paper on Revising the Remuneration Code.
Contact: Nathalie Aubry-Stacey
Further moves to strengthen ICMA's regional representation

New regional chairs: The new French regional Committee were introduced to the membership at an event in Paris attended by 300 financial market participants. We are very pleased to welcome more new regional appointments: Magnus Karlsson, Head of Financial Advisory Derivatives, Nordea Markets in Stockholm, will chair the association's Nordic Region and Eduardo Ikuno, Head of International Fixed Income Trading, Banco Itau BBA, will head our Latin America regional chapter. Nick Kaltsogiannis, Executive Director, Solidus Securities SA now heads the regional chapter that includes Greece, Cyprus, Turkey and Balkan States and Holger Kron, Managing Director and Global Co-Head NCC + Ffm Corp Bond Trading, Deutsche Bank AG, is the new chairman of the region for Germany.

New Russia and CIS Region: We have launched a new region of ICMA which will be based in Moscow and represent our member financial institutions in Russia and the CIS states. This move is in recognition of the increased importance of financial markets in Russia and the CIS, and in response to recent initiatives from the Russian government aimed at establishing Moscow as a key financial centre. Our membership in this area has been growing steadily and we have through our relationship with the National Securities Market Association (NSMA) been involved in technical developments in the region especially in the repo market.
Senior representatives

A new panel of senior representatives, all of whom have considerable length and depth of experience in the capital markets, and have been involved with ICMA will act as ambassadors for ICMA and its work in the capital markets and also provide us with insights on developments and opportunities in the marketplace. The panel currently consists of Jean Pierre Wellens, Giuseppe Distefano, Henrik Normann, Luc Caytan, Nis Bruun, Cees Bijloos, Brian Lawson, Philippe Musette and Rodolfo Fischer.
Upcoming meetings and events

Register now for:

ICMA Lunchtime Roundtable: European Market Infrastructure Regulation (EMIR), 18 November, London
The European Commission's EMIR proposal covering OTC Derivatives, Central Counterparties and Trade Repositories is directly applicable across the EU without the need for transposition into law by individual Member States, the aim is that these new rules should be fully in place and operational by the end of 2012. The proposed scope of the Regulation is wide and has implications beyond both derivatives and OTC markets. ICMA members are invited to attend a lunchtime briefing on EMIR, to be given by Godfried De Vidts, Chair of ICMA's European Repo Council.

The roundtable is free for ICMA members, to register, please email your name, job title and company name to
the ICMA Events Team.

Understanding the IPMA Handbook (ICMA Primary Market Handbook) 25 November, London


This half-day workshop will give an overview of the scope and application of the recommendations within ICMA's Primary Market Handbook for the issuance of international debt and debt related instruments and will also review recent developments and changes.

ICMA Primary Market Forum 2010, 30 November, London
ICMA's 3rd Primary Market Forum will bring together the international fixed income community, including borrowers, arranging banks, investors and law firms, to discuss the business issues and regulatory developments affecting the issuance of international debt, including, the ins and outs of bail-ins and other capital concerns and prospects for the vanilla funding market.

***Attendance at the Primary Market Forum qualifies for 3 Solicitor's CPD points***

Register here for the event which is free of charge for ICMA members.

GMRA-GMSLA Workshop, 1-3 December, London
A joint three day workshop from the International Capital Market Association (ICMA) and the International Securities Lending Association (ISLA) on the Global Master Repurchase Agreement (GMRA) and the Global Master Securities Lending Agreement (GMSLA). The workshop will include a detailed review of both legal agreements and their application, together with case studies, the operational and basic legal characteristics of the repo and securities lending markets will also be covered.

The GMRA-GMSLA Workshop is an accredited course under the Solicitors Regulation Authority (formerly The Law Society's) CPD Scheme. Solicitors may claim 18 hours CPD credit for their attendance on the whole course.

ICMA Covered Bond Investors Seminar, 8 December, Paris
The ICMA Covered Bond Investor Council is organising a conference to be held in Paris focusing on the Obligations Fonciéres market. Speakers and panellists will discuss the role of Covered Bonds in the financial markets; the regulatory treatment of Covered Bonds; recent developments in Obligations Fonciéres; the investor perspective on this asset class; a comparison of Covered Bonds with ABS; and the issuers' view of their funding needs and the use of covered bonds.

This event is free to attend. To register please send your name, job title and company name to the ICMA Events Team.

6th International REPO-FORUM "Consolidation of Financial Infrastructure and Money Market Development", 14 to 15 December, Moscow
The National Securities Market Association (NSMA, Russia) with support of the Central Bank of Russia (CBR) and MICEX and of ICMA will hold the 6th International REPO-FORUM "Consolidation of Financial Infrastructure and Money Market Development" in Moscow in December.
In the context of the setting up in Russia of the International Financial Centre, this forum will consider the most important issues relating to the development of the Russian financial market, touching upon the current challenges in the financial industry, such as the refinancing of the banking system, usage of clearing and settlement systems, forecasts on development of the cash and derivatives markets, recent developments in accounting and taxation, etc.
As usual, the Forum will gather famous Russian and foreign participants, key players of the banking sector, big investors, traders and practitioners in clearing and settlement fields and other well-known professionals from different segments of the Russian and international financial markets.

ICMA Annual Ski Weekend 21-23 January 2011, Crans Montana
For over 30 years, the International Capital Market Association (ICMA) Region of Switzerland & Liechtenstein has organised an annual ski event for ICMA member firms. The 2011 ski weekend, which is open to ICMA's entire global membership, will be held on the weekend of 21-23 January 2011, in the Swiss ski resort of Crans Montana.
New corporate finance qualification for the Chinese market

The National Development and Reform Commission Training Center (NDRCTC) of China, the International Capital Market Association (ICMA) and the ICMA Centre have just signed an agreement to develop a new corporate finance qualification for the Chinese market. ICMA and the ICMA Centre will cooperate with NDRCTC by providing technical assistance and academic support in developing training materials and international training standards for the Corporate Finance Certificate.
ICMA Executive Education - register now for courses in November and December

Securitisation - Understanding the Mechanics
22-23, November, Brussels

Corporate Actions - An Introduction
25-26, November, London

Credit Default Swaps (CDS) - An Introduction
29 November, London

Credit Default Swaps (CDS) - Operations
30 November, London

Securities Lending & Borrowing
2-3 December, London

For course listings in 2011 please see the website.
ICMA AGM and Conference 2011 save the date

For sponsorship and exhibition opportunities contact the ICMA Events team

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This communication is presented by the International Capital Market Association (ICMA). ICMA believes that the information contained in the communication is accurate and reliable but makes no representations or warranties, express or implied, as to its accuracy and completeness.

© International Capital Market Association (ICMA), Zurich, 2010. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission from ICMA.

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