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ICMA | International Capital Market Association
Members Update | ICMA Update for Members February 2013
After a strong start to the year in terms of primary issuance the markets have again paused for breath, with political uncertainty in Italy and the Financial Transaction Tax proposals again taking centre stage. ICMA on the other hand has not paused for breath as reform to the European capital market continues apace with a correspondingly strong work programme for us. The current focus includes collateral and repo, developments in the primary and secondary debt markets, encumbrance and shadow banking regulation. We will discuss these and other issues at ICMA's annual conference, and I hope you will be able to join us in Copenhagen in May.

Martin Scheck
Chief Executive
ICMA


If you have any comments on this update or its contents please contact us at: corporate.communications@icmagroup.org
  New ICMA members in February 2013
Aalto Invest LLP, London
CM Capital Markets Bolsa, SV, SA, Madrid
Crédit Agricole Securities Asia B.V., Tokyo
Donner & Reuschel Aktiengesellschaft, Hamburg
Yapi ve Kredi Bankasi A.S., Istanbul

Contact: sanaa.clausse@icmagroup.org
  ICMA JSS Japan Securities Summit
Representatives from the Japanese securities industry gathered at an event in London on 5 February to promote the Japanese markets to overseas investors and market participants. Japan's new government administration has launched a new economic policy package to release the Japanese economy from its long deflationary doldrums and establish a foothold for stable growth. These policies were outlined to an audience of European capital market participants at the Japan Securities Summit co-organised by the Japan Securities Dealers Association (JSDA) and the International Capital Market Association (ICMA). Presentations from the event are available from www.icmagroup.org.
  ICMA Executive Education expands management team
ICMA and the ICMA Centre have announced two key appointments to the management team of ICMA Executive Education, their joint financial markets professional education programme, as part of an initiative to expand its international reach and content.

Michael Mackenzie has been appointed to the new post of Head of Business Development for ICMA Executive Education where he is tasked with overseeing the growth of the business both in Europe and other international markets.

Dr Michael Smith of the ICMA Centre, Henley Business School has been appointed to the post of Academic Director of ICMA Executive Education where he will oversee the content of the existing 23 courses and will also be responsible for designing new programmes in response to changing market trends and conditions.
Contact: education@icmagroup.org
  Market Practice and Regulatory Policy update
For a full list of our Market Practice and Regulatory Policy experts and their areas of expertise
click here.

Primary markets: The Joint Associations Committee on Structured Products, of which ICMA is a member, has submitted a response to the ESMA consultation paper - Guidelines on key concepts of the AIFMD.
Contact: ruari.ewing@icmagroup.org

As part of a regular programme of industry wide consultations, a meeting was held in London on 8 February under the auspices of ICMA and with the support of the Swedish Riksbank, to consider the impact of asset encumbrance levels at banks in Europe, and how investors might view this in the light of the 'bail-in tool' under the proposed bank resolution regime. Some forty investors, issuers and regulatory experts came together to discuss how to address the issue of the level of secured funding employed by financial institutions in Europe and examine what levels of additional disclosure might be useful to investors.
Contact: katie.kelly@icmagroup.org

Secondary markets: Work continues to complete the formalities in relation to the abolition of the Council of Reporting Dealers. The intention is that the Secondary Market Practices Committee will become the chief governing body for all ICMA's secondary market activities.
At the recent Secondary Market Practices Committee Meeting in Frankfurt it was agreed that a Secondary Market / Repo Market Panel discussion would be held also in Frankfurt on 16 April.
Contact: john.serocold@icmagroup.org

Repo markets: ICMA has finalised and published a Russian Annex to the GMRA (1995, 2000 & 2011 versions), the legal opinion for Russia and a Russian translation of the GMRA 2011. The documents are available to ICMA members from the ICMA website.
Contact: lisa.cleary@icmagroup.org

A comprehensive list of FAQs on the Repo market, ranging from the simplest enquiries such as
"What is a repo?" to more detailed topical discussions on specialist questions, for example "Do haircuts/margins exacerbate pro-cyclicality?", is now available from the ICMA website.
Contact: erc@icmagroup.org

Collateral Initiatives Coordination Forum: The fourth meeting of the Collateral Initiatives Coordination Forum (CICF) took place on 7 February. Participants discussed the latest developments concerning collateral, particularly the evolving requirements for initial margin on non-CCP cleared OTC derivative transactions, and further opportunities for cross-industry collaboration. Once approved by the participants, minutes of the meeting will be added to the CICF's website pages.
Contact: david.hiscock@icmagroup.org

Asset management: The AMIC will be finalising its work programme for 2013, which includes studies on the role of the asset managers in funding the banks, asset encumbrance and transparency and long term investments. Asset managers, whether or not they are members of ICMA, are invited to participate by contacting the secretary to the AMIC.

The ICMA Private Wealth Management Charter of Quality has been adopted by three financial trade associations: The Luxembourg Bankers' Association (ABBL), The Association Luxembourgeoise des Professionnels du Patrimoine and the Liechtensteinischer Bankenverband. More than 50 banks in Luxembourg have signed the charter which sets out guiding principles of best practice adopted by the cross-border private banking industry.
Contact: annika.wahlberg@icmagroup.org

Financial benchmarks: ICMA has submitted responses to IOSCO's consultation on "Financial Benchmarks" and to ESMA and EBA's joint consultation on "Principles for Benchmark Setting Processes in the EU".
Contact: david.hiscock@icmagroup.org

More detailed information on ICMA Market Practice and Regulatory Policy work can be found in the ICMA Quarterly Report for the First Quarter (published on 9 January)

An ICMA Regulatory Grid which summarises proposed financial regulations affecting the cross-border securities market in Europe is available for download on the locked, members' only area of the
ICMA website. It is a working draft created by the ICMA Market Practice and Regulatory Policy team
and is periodically updated.
  Forthcoming meetings and events
Global Master Agreements for Repo and Securities Lending Workshop, 25-27 Feb, Frankfurt
ICMA and the International Securities Lending Association (ISLA) will be running a workshop on the Global Master Repurchase Agreement (GMRA) and the Global Master Securities Lending Agreement (GMSLA). These two separate master agreements are the essential legal underpinnings for repo and securities lending markets respectively.
The workshop will include a detailed review of both legal agreements and their application, including coverage of the GMRA 2011, together with case studies; and the operational and basic legal characteristics of the repo and securities lending markets.

Register here

ICMA European Repo Council (ERC) Annual General Meeting, 11 March, Paris
The next ERC meeting will be held at the Le Grand Hotel Intercontinental in Paris, kindly hosted by Euroclear in the context of the Euroclear Collateral Conference 2013.

Register here

European Regulation: An Introduction for Capital Market Practitioners, 13 March, London
This course aims to give practitioners a keener understanding of the current regulatory environment and alert them to areas of their own activities where the highest standards of integrity and professional business conduct must be maintained.

Register here

ICMA-NCMF joint seminar: the wave of regulatory reform and its impact on capital markets, 19 March, Oslo
At this one day conference, panels of market experts and regulators from the Nordic and European markets will take a wide ranging view on the immediate prospects for different areas of capital market activity including: raising capital in Europe, the future of OTC markets, the increasing importance of repo and collateral and the challenges facing investors in the real economy. The event has been designed around the need for the business functions in banks - syndication, trading, and operations - to understand the implications of regulation, although compliance and government relations professionals are also welcome to attend.

Register here

ICMA Asset Management and Investors Council (AMIC) Meeting & Seminar, 23 April, Paris
The AMIC represents a broad range of international investors drawn from all sectors of the industry, including institutional asset managers, private banks, hedge funds, pension funds, insurance companies and sovereign wealth funds. The AMIC Council meeting is a one day conference open to international asset managers which will review some of the major topics for the buy-side.

Register here

The ICMA Covered Bond Investor Council (CBIC) & The Covered Bond Report Conference, 16 May, Frankfurt
The 2013 Covered Bond Investor Conference will focus on topical investors' issues and will once again provide an ideal opportunity for those wishing to engage in a constructive dialogue with the buy-side. As with The Covered Bond Report website and magazine, the conference is free for relevant investors.

Register here

ICMA Annual General Meeting and Conference 2013, 22-24 May, Copenhagen
Registration is now open for the 2013 ICMA AGM and Conference in Copenhagen. Join senior representatives from ICMA member firms, banks, asset managers, regulatory authorities, central banks and infrastructure providers to hear market and regulatory experts consider the future of debt capital markets.

Register here

  ICMA Executive Education
Book now for these ICMA Executive Education courses in 2013

Part Ι: Introductory Programmes

Financial Markets Foundation Course (FMFC)
Luxembourg: 11-13 March
London: 8-10 May

Securities Operations Foundation Course (SOFC)
Brussels: 25-27 March


Part ΙΙ: Intermediate Programmes

International Fixed Income and Derivatives (IFID) Certificate Programme
Sitges, Barcelona: 21-27 April

Operations Certificate Programme (OCP)
Brussels: 17-23 March

Primary Market Certificate (PMC)
London: 13-17 May


Part ΙΙΙ: Specialist Programmes

Collateral Management
London: 3-4 April

Commodities - An Introduction
London: 25 March

Commodities - Trading and Investment Strategies
London: 26 March

Corporate Actions - An Introduction
London: 10-11 June

Corporate Actions - Operational Challenges
London: 12-13 June

Global Custody
London: 3-4 June

Inflation-linked Bonds and Structures
London: 20-21 June

Securities Lending & Borrowing
London: 29-30 April


ICMA Executive Education Skills Courses

Successful Sales
London: 25-26 April 2013

For a full 2013 course schedule see www.icmagroup.org/Training-Development
  ICMA supported industry events
IMN's 6th Annual Global Covered Bonds Conference, 26-27 Feb, London
This event will herald the first substantial gathering of the covered bonds industry in 2013 with more than 500 professionals expected to attend. Last year IMN were proud to host several key policy makers and industry associations as keynote and panel speakers, as well as the major covered bond houses and investors as expert panellists. This year will once again serve as fertile ground for thought provoking discussion, attendee networking and creative solution generation for the current financial challenges facing those in the Euro zone.

The Bond Investors Congress, 5-6 March, London
Do not miss your chance to participate in two days of debate and discussion focused on fixed income investing. Hear from leading politicians, investors, economists, bankers and regulators, and meet over 400 of your buy side peers. Fixed income investors are in uncharted territory. Unorthodox monetary policy, rock bottom rates on core government debt and heightened levels of sovereign risk have combined with the introduction of 'bail-ins' to make bond buyers tear up their old models.

4th Annual Asia-Pacific Debt Investor Forum, 7 March, Hong Kong
The 4th Annual Asia-Pacific Debt Investor Forum will hear from leading asset owners, asset managers and debt market professionals on the latest trends and opportunities in the fixed income space, including high yield, sovereign and quasi-sovereign debt and the local currency markets.

Financial Regulation: Towards a global regulatory framework?, 11 March, London
Chatham House Conferences will host a Financial Regulation conference. After the financial crisis there was a drive towards global integration of financial regulation. This conference will ask whether this can be maintained as governments face the realities of political pressure from their electorates and their banks.
Focusing on key issues in the emerging global regulatory architecture, discussion topics will include:
  • The European Central Bank's emerging role
  • Proposed solutions to 'too big to fail'- will UK ring fencing be 'electrified'?
  • The impact of US rules on global derivatives trading
  • How 'shadow banking' can be regulated
The Euromoney Swiss Franc Forum, 12 March, Zurich
On 12 March, Euromoney will host the second Swiss Franc Forum in Zurich. The Forum brings together international and domestic issuers with Swiss investors and the sponsoring intermediaries to discuss opportunities for funding and investing in the Swiss Franc bond market.

European Financial Management Association Conference 2012, Reading, 26-29 June 2013
The ICMA Centre, Henley Business School, will be hosting the 2013 European Financial Management Association (EFMA) annual meeting, one of the largest and most prominent academic conferences in finance in Europe.

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This communication is presented by the International Capital Market Association (ICMA). ICMA believes that the information contained in the communications 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, 2013. 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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