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ICMA Update for Members February 2011

As you can see from the following, 2011 has started with a burst of activity. In particular ICMA's response to the European Commission's exceptionally far-reaching consultation paper on MiFID involved a tremendous amount of work, with our committees, with members and with other associations, to a very tight deadline.

Aside from the issues outlined in the update we also sent a letter to members explaining that we will be asking you to vote on new fees for 2012 at the AGM in May this year, and are fixing meetings with you over the next couple of months to discuss this and answer any questions - I look forward to seeing you.

Martin Scheck
Chief Executive
International Capital Market Association

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

Asset management: The ICMA Asset Management and Investors Council (AMIC) which represents the views of ICMA's asset management community is active in a number of policy areas.

In October 2010 the FSB released at a global level its principles for reducing reliance on credit rating agency (CRA) ratings. The European Commission also published a new consultation on the issue of overreliance on CRAs in November. The consultation, which ended in January, aimed at promoting better due diligence and internal risk management models while calling for a change to the role of ratings in current regulation in light of their potential impact on investor behaviour. The AMIC is of the view that reform, while desirable, needs to be well conceived in order to maintain the public-good aspects of credit ratings and to avoid unintended consequences such as increased costs and reduced access to capital markets.

The European Parliament ECON Committee finally agreed on the text of the AIFM Directive, which will include clauses on asset stripping and remuneration as well as a compromise on marketing passports. Following this CESR published a call for evidence on level 2 measures. The AMIC made some general comments on the implementing measures.

The AMIC corporate governance working group has also responded to the UK Department for Business Innovation and Skills (BIS) paper titled "A long-term focus for corporate Britain".

The AMIC is of the view that the BIS support for the Financial Reporting Council's (FRC) Stewardship Code is welcome as is the FRC initiative to encourage investors to publish a statement on their website of the extent to which they have complied with the Code. The AMIC has also publicly supported the FRC Stewardship Code. The members of the AMIC share the view that (industry) codes on a 'comply-or-explain' basis are better suited than rigid regulation to achieve the envisaged higher level of investor engagement.
Contact: nathalie.aubry-stacey@icmagroup.org

Sovereign debt consultation: In December last year ICMA issued a Sovereign Bond Consultation Paper, which set out proposals as a basis for discussion with ICMA's members. ICMA thanks those of its members who provided feedback for their valuable and thoughtful contributions. The feedback received has been summarised for members' benefit. ICMA is continuing its work in light of this and will keep members updated as the work progresses.
Contact: david.hiscock@icmagroup.org

Primary markets: The Joint Associations Committee on Retail Structured Products (JAC) of which ICMA is a member has responded to the European Commission regarding current consultations on its Packaged Retail Investment Products ("PRIPs") initiative including: the consultation by the Commission Services on legislative steps for the Packaged Retail Investment Products initiative (the "PRIPs Consultation Paper"); the Commission consultation paper on the MiFID Review (the "MiFID Consultation Paper"); and the consultation paper on the Review of the Insurance Mediation Directive.
Contact: ruari.ewing@icmagroup.org

Secondary markets: ICMA's response to the Commission consultation on the Markets in Financial Instruments Directive (MiFID) was submitted on 3 February. The Commission's proposal for legislation is due in June 2011.
Contact: john.serocold@icmagroup.org

Short-term markets: There is still time for repo market participants to take part in ICMA's 20th Repo Market Survey, which will provide a snapshot of the market at close of business on Wednesday, December 8, 2010. Forms and guidelines for participation are available here. The survey results will be published on 10 March.
Contact: reposurvey@icmagroup.org

Market infrastructure: ICMA has responded to European Commission consultation: Legislation on legal certainty of securities holding and dispositions.
Contact: david.hiscock@icmagroup.org

Responses to regulators: ICMA is currently working on the following responses to regulators. Members are encouraged to give their views by e-mail to the relevant ICMA point of contact in good time before the deadline.

ESMA's Call for Evidence on the Prospectus Directive, deadline 25 February.
Contact: ruari.ewing@icmagroup.org

The European Commission Consultation Paper on CSDs and securities settlement, deadline 1 March.
Contact: david.hiscock@icmagroup.org and john.serocold@icmagroup.org

The European Commission Consultation Paper on crisis management, where our focus is on "bail-ins", deadline 3 March
Contact: david.hiscock@icmagroup.org
Upcoming meetings and events for the first quarter 2011

Register now for:

Understanding the IPMA Handbook (ICMA Primary Market Handbook), London, 3 March

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

Understanding the IPMA Handbook is an accredited course under the Solicitors Regulation Authority (formerly The Law Society's) CPD Scheme. Solicitors may claim 2.5 hours CPD credit for their attendance on the course.

Register here

ICMA European Repo Council (ERC) General Meeting, London, 10 March

The 2011 European Repo Council (ERC) General Meeting, will be held in London on the morning of 10 March and will be followed by the J.P. Morgan, Annual Securities Financing and Collateral Management Conference.

Register here

MiFID Review Conferences 2011

The International Capital Market Association (ICMA) together with International Swaps and Derivatives Association (ISDA) is presenting a series of half day conferences on the MiFID review to update members on progress with the review and its impact on the business of all capital market participants in Europe.

The conferences will feature presentations from policy experts from ICMA and ISDA on the implications of the review for fixed income and derivatives markets. Expert panels including local regulators, will consider changes to the balance of liquidity and transparency in light of changes to the transparency regime for both equity and non-equity instruments under MiFID.

Locations and Dates:
  • Madrid, 3 March
  • Frankfurt, 15 March
  • Paris, 18 March
Register here

Successful Sales Workshop, London, 29-30 March

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.

Register here

GMRA-GMSLA Workshop, London, 18-20 April

ICMA and the International Securities Lending Association (ISLA) are holding a series of joint workshops on the Global Master Repurchase Agreement and the Global Securities Lending Agreement, the first of these will take place in London in April. The workshops will include detailed reviews of both agreements and their application, with case studies. The operational and basic legal characteristics of the repo and securities lending markets will also be covered.

Register here
New ICMA staff

John Serocold has joined the Regulatory Policy and Market Practice team in London as a Senior Director with responsibility for leading ICMA's secondary market activities, with a specific focus on the MiFID review. In the Corporate Communications team, David Senior joins from Informa as Head of Business Development for ICMA Executive Education.
ICMA Executive Education

New diplomas

ICMA Executive Education is offering two new diplomas as a route to achieving recognised qualifications in either Securities and Derivatives or Financial Market Operations. The diploma award is dependent on successful completion of relevant courses from ICMA Executive Education's existing offering.

Contact: education@icmagroup.org

Register now for courses in first half

Commodities - An Introduction
London, 24 February

Commodities - Trading and Investment Strategies
London, 25 February

Financial Markets Foundation Course (FMFC)
Luxembourg, 28 February - 2 March
London, 11 - 13 April

Credit Default Swaps (CDS) - An Introduction
London, March 10

Credit Default Swaps (CDS) - Operations
London, March 11

Securities Operations Foundation Course (SOFC)
Brussels, 4 - 6 April
London, 1-3 June

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

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

Primary Market Certificate (PMC)
London, 16 - 20 May

For sponsorship and exhibition opportunities contact the ICMA Events team
ICMA on LinkedIn

ICMA has a group on LinkedIn. Add International Capital Market Association - ICMA to your profile to join the discussion.

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, 2011. 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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