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ICMA Update for Members December 2011
ICMA UPDATE FOR MEMBERS December 2011

As we reach the end of 2011 there is still only one story - how is the sovereign debt situation going to be resolved? The all-consuming focus on solving this issue is however masking a seismic shift in the ways the international capital markets (and participants in those markets) will be regulated, and the way they will operate in the future. These far-reaching regulatory proposals make significant demands on market participants requiring them to focus their time and attention on fully comprehending the detail and its potential impact on the business prior to implementing whatever change is required.

We all know that the capital markets are simply not working well at the moment - capital is not flowing from those who have it to those who need it; liquidity is vastly reduced or nonexistent; screen prices are not adhered to; settlement issues abound; bid/offer spreads are wide; and investors are scrutinising the terms and conditions of bonds as they have not had occasion to before. These conditions arise mainly from the continuing crisis, but are exacerbated by ongoing regulatory uncertainty and the lack of clarity over much of the detail of the new regulation.

Against this backdrop it is unsurprising that ICMA can look back on an exceptionally active year, fully engaged with members through many committees and working groups, as we have sought to assess the true impact of proposed changes and to provide information and comment to regulators and policy makers. In the interests of keeping you our members informed we have organised a record number of more than 100 events, including roundtable briefings, workshops, seminars and conferences in locations throughout Europe and occasionally further afield, in Brazil for example.

The strong regional structure of ICMA is a valuable asset at this difficult time. Members have met regularly on a regional basis this year to discuss the issues which are specific to their own markets and to inform and advise ICMA on its strategic approach. I am pleased to say that we have very active regional committees in place now throughout Europe to facilitate this good work.

I would like to thank not only the staff of ICMA but also the many hundreds of individuals from our member firms who give up their time freely to sit on all our committees, councils, working groups and board. Without them we would simply not be effective.

Martin Scheck
Chief Executive
Education Update 

ICMA Executive Education has enjoyed a record year with more than 600 finance professionals attending our ICMA Executive Education courses. We have also run many more "vocational" courses (on the GMRA and the primary market handbook for example) for more than 200 students, and the joint education venture in China with the National Development and Reform Commission is now fully operational with over 300 students graduating.

Public courses were held in different global locations to attract participants from a wide variety of countries, including London, Luxembourg, Barcelona, Brussels, South Korea and Geneva, in 2012, we will be adding Dubai, Hong Kong and Malaysia. The University of Reading is opening a new campus in Iskandar, Malaysia and we have already scheduled a week of Securities courses (a three day SOFC followed by a two day Derivatives Operations course) to take place there in June. We will in due course be adding dates for a week of front office courses (a three day FMFC followed by a two day course)

Two diplomas were launched in 'Securities and Derivatives' and 'Financial Market Operations'. There has been a great deal of interest from delegates in obtaining these diplomas and we should see a good take-up of people looking to complete this by registering for courses in 2012.

More informally, ICMA also seeks to inform members on topical market related issues, through the use of meetings, teleconferences and the ICMA website. A good recent example of this is the newly created ICMA website page to provide Information re Potential Changes in Eurozone Composition and the associated, exceptionally well attended, members teleconference regarding the implications of the Eurozone crisis for bond documentation. Responsive to circumstances further initiatives of this sort will be developed during 2012.
New Members 2011 

A further 5 firms were admitted to ICMA membership at the last Membership Committee meeting of the year. ICMA ends the year with 430 members compared with 400 at the end of 2010.

New ICMA members in December:

ABSA Bank Limited, Johannesburg
Banco Itaú (Suisse) SA, Zurich
BANKIA, S.A., Pintor Sorolla, Valencia
Creditex Brokerage LLP, London
Instituto de Crédito Official, Madrid
Market Practice and Regulatory Update 

We will continue to focus on improving standards of efficiency in the cross-border securities markets, including transparency, liquidity and safety; and dealing with the impact on market efficiency of new regulations, working through our Market Practice and Regulatory Policy Committees of member experts on a pan-European basis. We will reach out to our members as a whole through our Quarterly Report, teleconferences, roundtables and seminars. And we will cooperate with other trade associations to maximise our effectiveness and minimise overlap, wherever we can.

Sovereign bond markets: We will continue, with the help of the ICMA Regulatory Policy Committee, to monitor the implications for our members of the regulatory response to the international financial crisis, and in particular the sovereign bond crisis in the euro area. In the sovereign bond markets, we plan to focus on technical issues of importance to members, such as the adoption of Collective Action Clauses in euro area sovereign bond issues; the transparency of the terms and conditions of sovereign bond issues; technical aspects of "eurobonds"; and electronic links to further information for members on the ICMA website. We hope to continue working closely with leading international law firms.
Contact: david.hiscock@icmagroup.org

Under the guidance of our President, René Karsenti, we plan to launch early in 2012 a new Public Sector Issuer Forum for the sovereign, supranational and agency sector.
Contact: nelly.cotelle@icmagroup.org

Repo and ECP markets: 2011 was a milestone year for ICMA's repo activities with the finalisation of an 18 month review of the Global Master Repurchase Agreement and the launch of the updated GMRA 2011. Priorities in the ICMA European Repo Committee and the ICMA ECP Committee in 2012 include: liquidity; and collateral. Given the emphasis in the market on secured lending there is increasing concern about the scarcity of collateral, at a time when the demand for it is rising as a result of regulatory change We expect this to be a key issue for members over the next 12 months.
Contact: reposurvey@icmagroup.org and lalitha.colaco-henry@icmagroup.org

The deadline for market participation in the December 2011 Repo Survey is 9 January. The results of the survey will be published later in January.
Contact: reposurvey@icmagroup.org

Primary markets: Working with the ICMA Primary Market Practices Committee and the ICMA Legal & Documentation Committee, our priorities in 2012 will include: new issue processes; the implications for members of the Prospectus Directive at Level 2; and other new regulations, such as changes in the Market Abuse Directive. We are reviewing and updating our Primary Market Handbook.
Contact: ruari.ewing@icmagroup.org

We plan in 2012 to develop our new Financial Institutions' Issuer Forum.
Contact: katie.kelly@icmagroup.org

Secondary markets: We are building up the ICMA Secondary Market Practices Committee under its new Chairman. The Committee will oversee a review of ICMA's Secondary Market Rules and Recommendations, with the focus on those areas currently under stress, such as the sections relating to settlement discipline. We also need to take account of the implications for the OTC bond markets of the European Commission's new proposals on MiFID and MiFIR, and the related changes in market infrastructure. Further MiFID seminars and briefings are planned in the first half of 2012 in Vienna, Milan and Amsterdam.
Contact: john.serocold@icmagroup.org

Asset management: The ICMA Asset Management and Investors Council (AMIC) - and the proposed new AMIC Executive Committee - will continue to develop ICMA's buy-side activities, with the support of a series of Working Groups. Priorities in 2012 include: corporate governance; exchange-traded fund transparency; valuation transparency; private banking standards; and the reporting obligations of asset managers in respect of insurance money under Solvency II.
Contact: nathalie.aubry-stacey@icmagroup.org

Covered bond markets: ICMA's Covered Bond Investor Council (CBIC) Working Group on transparency standards will oversee the issue of a transparency standard template in 2012.
Contact: nathalie.aubry-stacey@icmagroup.org


More detailed information on ICMA Market Practice and Regulatory Policy work can be found
in the ICMA Quarterly Report
- the next edition will be published in early January 2012

Paul Richards
Head of Market Practice and Regulatory Policy
paul.richards@icmagroup.org
Upcoming meetings, workshops and events 2012 

ICMA European Repo Council (ERC) Annual General Meeting, Luxembourg, 18 January
The 2012 European Repo Council (ERC) General Meeting will be held in Luxembourg in the margins of the Clearstream 16th Global Securities Financing Summit.
The AGM, which is open to all in the European Repo Community, will feature a keynote address by Ms. Daniela Russo, Director General of Payments and Market Infrastructure at the European Central Bank.

Register here

Les Rencontres des Professionnels des Marchés de la Dette et du Change, Paris, 19 January
This conference is organised by the associations of Fixed Income Professionals: ICMA France,The Financial Markets Association (ACI), Association Française des Marchés Financières (AMAFI), Association Française des Trésoriers d'Entreprise (AFTE), Comité de Normalisation Obligataire (CNO), Paris Europlace.

There will be three panels on:
  • What Future for Securitisation?
  • The evolution of asset management and regulation
  • European Infrastructures and Paris Market Place
This event is open to members of all participating associations.
Register your attendance by e-mail to: elisabeth.blanchet@icmagroup.org.

ICMA Annual Charity Ski Weekend
organised by the ICMA Switzerland and Liechtenstein region
Engelberg, 20-22 January

Register here

4th Annual ICMA-NCMF Conference, Stockholm, 24 January
Nordic and international capital markets - weathering the financial storm

ICMA and the Nordic Capital Markets Forum (NCMF) present the fourth annual conference on developments in Nordic and International capital markets.
Expert sessions will assess: the macroeconomic risk outlook for the Nordic region and Europe; the future of government and state sponsored financing in the new environment and the continuing challenges for bank funding. The regulatory panel will consider the changes to Capital Requirements, CCP clearing and MiFID/MIFIR which will affect short selling, market infrastructure and CSD operations.

Register here

ACI and ICMA 2012 Economic Summit and New Year's Event, Brussels, 26 January
The evening event features four prominent economists who will provide a brief outlook for 2012 on the different markets followed by a panel discussion.

Register here

The Global Master Repurchase Agreement (GMRA) 2011 - roundtable briefing, Madrid, 1 February
Register by e-mail to shannelle.rose@icmagroup.org, giving your name, job title and company name.

*Global Master Agreement for Repo and Securities Lending Workshop, Madrid, 1-3 February
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.

Register here

*Understanding the ICMA Primary Market Handbook (IPMA Handbook), London, 16 March
The half-day session will give an overview of the scope and application of the recommendations in the handbook and will also review recent developments and changes.
For further information and to register please click here.

* Course/workshop accredited under the Solicitors Regulation Authority (formerly The Law Society's) CPD Scheme

ICMA Covered Bond Investor Council Road shows - SAVE THE DATE
Luxembourg, 20 March
Zurich, 21 March

ICMA CBIC & The Covered Bond Report Conference, Frankfurt, 10 May - SAVE THE DATE
ICMA's Covered Bond Investor Council (CBIC) and The Covered Bond Report are launching their first joint conference, which will be held in Frankfurt on the 10 May.
To pre-register for this event, please click here.

ICMA AGM and Conference, Milan, 23-25 May - REGISTRATION OPENS IN JANUARY 2012
The 44th ICMA AGM and conference will be held next year at the Palazzo Mezzanotte in Milan.

Confirmed speakers include: Jonathan Faull, European Commission; Xavier Rollet, Chairman, London Stock Exchange; Paul Mercier, ECB; Thomas Mayer, Deutsche Bank; Godfried de Vidts, ICAP; Peter Praet, ECB; Eduard Cia, UniCredit; Jefferey Tessler, CEO, Clearstream; Tim Howell, CEO, Euroclear; Michael Ridley, JP Morgan; Verena Ross, ESMA

Contact the ICMA Events for sponsorship opportunities at discounted rates for members.
ICMA Executive Education 

Register now for these courses

Introductory Programmes

Financial Markets Foundation Course (FMFC)
Luxembourg: 5-7 March 2012
London: 29-31 May 2012
Luxembourg: 24-26 September 2012
London: 19-21 November 2012

Securities Operations Foundation Course (SOFC)
London: 25-27 January 2012
Brussels: 12-14 March 2012
Malaysia: 11-13 June 2012
London: 10-12 September 2012
Brussels: 12-14 November 2012

Intermediate Programmes

International Fixed Income and Derivatives (IFID) Certificate Programme
Next residential course:
Sitges, Barcelona: 22-28 April 2012
Hong Kong: 24-30 June 2012
Sitges, Barcelona: 28 October - 3 November 2012

Operations Certificate Programme (OCP)
Brussels: 25-31 March 2012

Primary Market Certificate (PMC)
Dubai: 22-26 January 2012 **in association with Thomson Reuters***
London: 14-18 May 2012
London: 19-23 November 2012

Specialist Programmes

See website for details

Collateral Management
London: 8-9 March 2012

Commodities - An Introduction
London: 29 March 2012

Commodities - Trading and Investment Strategies
London: 30 March 2012

Securities Lending & Borrowing
London: 19-20 April 2012

Corporate Actions - Operational Challenges
London: 3-4 May 2012

Credit Default Swaps - Features, Pricing and Applications
London: 18-19 June 2012

Credit Default Swaps - Operations
London: 20 June 2012

Derivatives Operations
Malaysia: 14-15 June 2012

ICMA Executive Education - Skills Courses

Mastering Mandates
London: 2-3 February,2012

Successful Sales
London: 19-20 March, 2012
ICMA supported industry events 

2012 European Forum - Banking Risk and Regulation, London, 7-9 February 2012
The Forum will feature an impressive line-up of senior executives from leading institutions, with high-level presentations, panel discussions and thought-leadership sessions addressing the critical issues facing the industry. The Forum will also include two intensive and interactive one-day Masterclasses on: Effective Liquidity Risk Management and Regulation in a Post-Crisis Financial World and Reporting Structures, Process and Risk Management: From Risk Manager to the Board.
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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