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ICMA Update for Members December 2010

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

The final members' update for the year summarises our progress in the past month on sovereign bonds, on primary processes, MiFID, repo, market infrastructure and other related areas. The workload continues to be exceptionally heavy as we respond to regulatory change that has the capacity to change the international securities market and to affect our members.

The New Year already promises similar challenges. We thank all our members who actively participate as experts on our many committees and councils whose input and guidance is invaluable, and deeply appreciated. We look forward to close and continuing co-operation with all of you in 2011.

Martin Scheck
Chief Executive
International Capital Market Association
New members
Market practice and regulatory update
Upcoming meetings and events
ICMA Executive Education
New members

This year has seen a record number of firms joining ICMA, with a total of 62 members in the course of 2010 across all regions, from both buy and sell sides of the market, central banks and infrastructure providers. The 14 new member firms who joined in December are listed below bringing the total number of ICMA member firms to 401, in 50 countries.

Association Française des Trésoriers d'Entreprise (AFTE), Paris, France
ASB Bank Limited, Auckland, New Zealand,
Bank Hapoalim, Tel Aviv, Israel
e-MID SIM S.p.A., Milan, Italy
GE Financial Markets, Dublin, Ireland
Hogan Lovells International LLP, London, United Kingdom
Inverseguros, Sociedad de Valores, S.A., Madrid Spain,
Natixis Asset Management, Paris, France,
Open-Joint Stock Company Promsvyazbank, Moscow, Russia
Oesterreichische Nationalbank, Vienna, Austria
RCM Capital Management LLC, San Francisco, CA, United States
VTB Bank (open joint-stock company), St. Petersburg, Russia
Waring Attorneys, Mbabane, Swaziland
Westpac Banking Corporation, London, United Kingdom
Market practice and regulatory update

Sovereign bond markets: ICMA has issued a Sovereign Bond Consultation Paper for comments by members. The Consultation Paper is intended to promote improvements in the standards of transparency relating to the issuance of sovereign bonds sold to investors internationally, and to propose standards of best market practice relating to their contractual terms and conditions.
Contact: Sovereignbondconsultation@icmagroup.org

Short-term markets: The ICMA European Repo Council has updated its July White Paper on the Operation of the European Repo Market, the Role of Short-Selling, the Problem of Settlement Failures and the Need for Reform of the Market Infrastructure. The new paper sets out the responses to the ERC White Paper from national central securities depositories and central counterparties, and describes the progress that has been made since July towards the elimination of barriers to interconnectivity; the update covers Spain and Italy.

All repo market participants are invited to take part in ICMA's 20th Repo Market Survey, which will provide a snapshot of the market at close of business on Wednesday, 8 December 2010. Forms and guidelines for participation are available here; survey returns should be completed by 7 January 2011.
Contact: reposurvey@icmagroup.org

Primary markets: In its response to HM Treasury's consultation on the future of UK financial regulation, the ICMA Legal & Documentation Committee focused on the proposals to transfer the UK Listing Authority (UKLA), the primary market regulators, to a separate Government Department. We argued that it is important to keep the UKLA in the Consumer Protection and Markets Authority (CPMA): to retain the UKLA's international focus; to keep primary and secondary regulation together; and to mirror more closely the responsibilities of the European Securities Authority, where the CPMA will represent the UK. The UK Government has accepted these arguments and decided to keep the UKLA in the CPMA.

The Prospectus Directive Amendment Directive (2010/73/EU) was published on 11 December in the Official Journal:
Contact: Ruari Ewing

Secondary markets: Following the electronic survey of members on their usage of ICMA Secondary Market Rules and Recommendations, we have sent a summary of the responses received to those who completed the survey. Taking account of the responses received, we plan to invite respondents to participate in a meeting of our Secondary Market Practices Committee in January to review our Secondary Market Rules and Recommendations, and and make recommendations for any improvements.

The European Commission has published its consultation paper on the review of the Markets in Financial Instruments Directive (MiFID), we are working with members on a response by the deadline of 2 February 2011.
Contact: Lalitha Colaco-Henry

Asset management: The AMIC has followed up the work it has done on valuation of assets with the Global Investment Performance Standards (GIPS) and the International Valuation Standards Council (IVSC). The three organisations will be meeting in the new year to discuss updates of the working streams.

The Covered Bond Investor Council gave initial feedback to the FSA, HMT and Bank of England on the review of the UK regulated covered bond framework. The feedback was informed by the Bank of England market notice requiring granular information from issuers on a loan-by-loan basis, so that investors could make their own stratification tables about the cover pool. The CBIC organised a successful French covered bond event aimed primarily at investors in Paris discussing the latest regulatory developments in the obligations foncières/obligations à l'habitat market.

The AMIC met on 14 December in London and discussed its work programme for 2011. The main issues that will be considered in 2011 are: credit rating agencies, and the overreliance on ratings; Exchange-traded funds; corporate governance; and the MiFID Review.
Contact: Nathalie Aubry-Stacey

Market infrastructure: ICMA's executive committee recently decided to add a recommendation on electronic trade confirmations to ICMA's Secondary Market Rules and Recommendations. The decision was based on a proposal from the electronic trade confirmations working group of ICMA's Council for the Euro Debt Market (AMTE). The ETC working group was established by the AMTE Council with the aim to put in place an industry best practice for OTC securities trade confirmations. The current version of ICMA's Rule Book is available to members on the Association's website at:
Contact: legalhelpdesk@icmagroup.org
Upcoming meetings and events for the first quarter 2011

A number of member roundtables are planned for 2011, suggestions for topics of interest to members are welcome! MIFID review seminars will be run in major financial centres throughout Europe contact TAevents@icmagroup.org for more details.

Register now for:

ICMA Skills - Successful Sales Workshop, London, 13-14 Jan
Aimed at capital market sales people, the Successful Sales Workshop will focus on acquiring new marketing and sales skills for selling debt, equity and derivative instruments to an institutional client base. Developing market-leading client acquisition and retention skills, the course covers both core telephone selling skills and client meeting skills.

The course will acknowledge the natural conflicts in the dealing room and the inter-dependency between sales, trading and new issues and its importance in delivering a strong capital markets performance. Knowing your customers and treating them fairly will be a key concept addressed.

Les Rencontres des Professionnels des Marchés de la Dette et du Change
The conference for fixed income professionals in the French marketplace
"The aftermath of the crisis: the new challenges"
Round tables and cocktail, Paris, 19 January, 2011

The event, organised by ICMA France and Monaco region, together with associations representing fixed income professionals in France is open to all ICMA members and features:

An opening speech by Mr. Christian Noyer, Governor of the Banque de France. Concluding speech by Mr. Jean-Pierre Jouyet, President of the AMF (Autorité des Marchés Financiers).

And round table discussions on: The impact of the new regulation on short term liquidity; Does the expansion of the electronic trading meet with market professionals' expectations? and; Indices: do they reflect or drive the market?

Click here for the full agenda.

Register your attendance.

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 to 23 January, 2011, in the Swiss ski resort of Crans Montana.

2011 Economic Summit and New Year's Event, 27 January, Brussels
Organised by ACI, ICMA and IEDA

The conference will take place at 18:00 at the Brussels Stock Exchange. It features four guest speakers, all economists from financial institutions, who will give their brief outlook for exchange rates and the bond and equity markets for 2011, followed by a panel discussion. The moderator will be Peter Vandenhoute, Chief Economist at ING. The summit will be followed by a buffet dinner.

Featured speakers:
  • Pascal Paepen, Daiwa Capital Markets
  • Natacha Valla, Goldman Sachs
  • Gianluca Salford, JP Morgan Chase Bank; and
  • Stephane Deo, UBS
As usual, there will be a Dow Jones competition, please send your estimate for the closing of the Dow Jones index on 26 January 2011. Entries to be sent via email no later than 14:00 on 26 January 2011 to icmabelgium@icmagroup.org

Attendance at the summit is free of charge; please register by e-mail to icmabelgium@icmagroup.org.

Understanding the IPMA Handbook (ICMA Primary Market Handbook) London,
Course dates for 2011 - 3 March, 9 June, 8 September and 8 December

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.
Contact: TAevents@icmagroup.org
ICMA Executive Education - register now for courses in first quarter 2011

Commodities - An Introduction
London: 24 February 2011

Commodities - Trading and Investment Strategies
London: 25 February 2011

Financial Markets Foundation Course (FMFC)
Luxembourg: 28 February - 2 March 2011
Copenhagen: 7 - 9 March 2011
London: 11 - 13 April 2011

Securities Operations Foundation Course (SOFC)
London: 16 - 18 March 2011

Operations Certificate Programme (OCP)
Brussels: 27 March - 2 April 2011

International Fixed Income and Derivatives (IFID) Certificate Programme
Sitges, Barcelona: 1 - 7 May 2011

Primary Market Certificate (PMC)
London: 16 - 20 May 2011

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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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