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ICMA | International Capital Market Association
ICMA Update for Members December 2013
In a year of intense activity on the regulatory agenda affecting all the areas of debt capital markets in which we are active on our members' behalf, probably the single proposal which would have had the most dramatic effect on the cross-border securities markets was the Financial Transaction Tax. Our response to this was to produce a number of well-researched papers for the authorities which set out to quantify the extent of the potential effect of the tax. Although the most recent developments suggest that repo and securities lending markets, which stood to sustain most damage from the FTT may well be exempt, there are still major concerns about its impact on other products. We expect to continue our efforts on this in 2014 and some of our other priorities are listed below. We have again run over 100 events for members this year, including our new capital market lectures and a series of allocation roundtables in different regions where we bring the issuing banks and investors together to review best practice in primary markets. Our programme of events for first quarter 2014 is already in place and we are taking registrations (see ICMA events).

Season's Greetings and best wishes for the New Year.

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 November/December
Allianz Global Investors Europe GmbH, Frankfurt am Main
Bank of Moscow JSCB, Moscow
Central Bank of Ireland, Dublin
CIMB Bank Berhad, Kuala Lumpur
Ipreo Holdings LLC, London
Latham & Watkins (London) LLP, London
Liberty Group Limited, Braamfontein
Merrill Lynch (Asia Pacific) Limited, Central Hong Kong
Nomura Bank (Luxembourg) S.A., Luxembourg
Oppenheimer Europe Ltd., London
Scotiabank Europe plc, London
Squire Sanders (UK) LLP, London
The Association of Corporate Treasurers (ACT), London
The Northern Trust Company, Chicago
UniCredit S.p.A., Rome
Union Investment Privatfonds GmbH, Frankfurt
United Overseas Bank Limited, Singapore
Wells Fargo Bank S.A., San Francisco

This brings the total number of new members joining ICMA in 2013 to 57 and the closing total membership to 457, a ten year high. The spread of global membership increased to 54 countries, including our first members form Estonia and Romania.

View a full list of ICMA member firms on our website.
Contact: sanaa.clausse@icmagroup.org
  Market Practice and Regulatory Policy Priorities for 2014
The key issues on which ICMA will be engaged on behalf of its members in 2014 include: the implications of European Banking Union for the securities markets, including the ECB's Asset Quality Review; the implications of shadow banking regulation for the repo market; the FTT; leverage ratio; collateral; financial benchmarks; the Prospectus Directive and PRIPs; the MiFID II package (at Level 2); the CSD Regulation; trade repositories; and other regulatory initiatives affecting the liquidity, transparency and safety of the cross-border securities markets in Europe.

On the market practice side we intend to complete the review of the ICMA Primary Market Handbook; update ICMA Secondary Market Rules and Recommendations once the MiFID II package and the CSD Regulation are settled; finalise and encourage use of the Guide to Best Practice in the International Repo Market; encourage use of the GMRA 2011 protocol to update market participants to the new agreement and, together with our legal department, complete the initiative on Collective Action Clauses and Pari Passu amendments.
  Market Practice and Regulatory Policy update
For a full list of ICMA's Market Practice and Regulatory Policy experts and their areas of expertise click here.

Repo markets: The 26th ICMA ERC Repo survey is now under way, with participating banks reporting repo business outstanding on Wednesday 11 December. All financial institutions transacting repo business in Europe are invited to participate in this long standing survey and forms are available from the ICMA website. The results of the survey will be published in January 2014.
Contact: erc@icmagroup.org

The ICMA European Repo Council, together with ISLA, submitted a detailed response to the Financial Stability Board's consultative proposals on haircut practices in the securities lending and repo markets.
Contact: david.hiscock@icmagroup.org

Primary markets: The annual ICMA Primary Market Forum brought together an audience of debt capital market participants, issuers, investors and syndicate managers to discuss regulatory developments affecting the issuance of corporate debt and prevailing market conditions. Leland Goss, ICMA's General Counsel, presented ICMA's ongoing work in updating its model Collective Action Clause for use in all non-euro area sovereign debt issues under domestic or foreign governing law. Read the write up in IFLR.
Contact: leland.goss@icmagroup.org

After a long and productive tenure Kate Craven is standing down as Chair of ICMA's Legal and Documentation Committee, the grouping of heads and senior members of the legal transaction management teams of ICMA member banks active in lead-managing syndicated bond issues in Europe. We thank Kate for her hard work and achievements over the years and are very pleased to welcome David Hopkins of RBS who will chair the Committee going forward.
Contact: ruari.ewing@icmagroup.org

An Asia Debt Syndicate meeting was attended by 18 syndicate managers from leading Asian underwriters. The subjects covered, including pre-sounding, book status communications, pricing iterations, allocations, roles of underwriters, and the dynamics and risks of a growing market with many new entrants, echoed to some extent with many of the discussions in the ICMA Primary Markets Practice Committee, but from an Asian perspective.
Contact: mushtaq.kapasi@icmagroup.org

Secondary markets: A number of ICMA sell-side firms have now received an invitation to complete a survey on liquidity in the secondary bond markets. The rationale for this work is to establish some facts about current market conditions against which the impact of forthcoming regulatory change can be assessed. The survey is intended to provide anonymous and aggregated information in the public domain so that market participants, policy makers and others with an interest in the bond markets can gather evidence over time on the state of liquidity in investment grade corporate debt, syndicated sovereigns, supranationals and agencies.
Contact: john.serocold@icmagroup.org

Asset management: The Asset Management and Investors Council (AMIC) met to consider the issues the asset management community will be looking at in 2014. Andreas Utermann, global chief investment officer of Allianz Global Investors outlined some of the problems that the industry is facing as it seeks to restore trust - his remarks were reported in an article in FT FM.

The Covered Bond Investor Council has issued a position statement in support of the inclusion of covered bonds as extremely high liquid assets under the Liquidity Coverage Ratio within the new provisions for the European banking sector.
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 for the Fourth Quarter (published on 9 October 2013).
The ICMA Quarterly Report for the First Quarter 2014 will be published on 9 January 2014.

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 provided by the ICMA Market Practice and Regulatory Policy team and is periodically updated.
  ICMA Events 2014
Most ICMA events are accredited under the Solicitors Regulation Authority (formerly The Law Society's) CPD Scheme. See ICMA website for details.

ICMA Annual Charity Ski Weekend 2014, Zermatt, 10-12 January
The ICMA Region for Switzerland & Liechtenstein is organising its annual charity ski event for ICMA members as it has done for almost 40 years. It provides ICMA members with the opportunity to combine business, networking and pleasure all in the aid of charity.

Register here

ICMA European Repo Council (ERC) Annual General Meeting, Luxembourg, 22 January
The European Repo Council (ERC) Annual General Meeting, alongside formal business (including annual elections for the ERC Committee), will cover most aspects of the operation of the European repo markets, including recent regulatory and legal developments. This event is hosted by Clearstream and is open to all members of the European repo community.

Register here

ACI and ICMA 2014 Economic Summit and New Year's Event, Brussels, 23 January
ICMA members are invited to this annual social event taking place this year at La Tentation in Brussels. It features presentations by four prominent economists from leading banks, who will each provide a brief outlook for 2014 on the different markets, followed by a panel discussion. Organised by ACI and the ICMA Belgian region. Open to ICMA Belgian region members only.

Register here

AFME and ICMA Capital Market Lecture: Martin Wheatley Chief Executive of the UK's Financial Conduct Authority (FCA), London, 3 February
The 2014 ICMA Capital Market Lecture series, featuring senior industry figures, including regulators, government officials, central bankers and commentators, opens with an opportunity to hear from one of Europe's most influential regulators, Martin Wheatley,
This event is open to ICMA and AFME members only.

Register here

ICMA Professional Repo and Collateral Management Course, London, 4-5 February
This course has run successfully for over 10 years, becoming the market benchmark. It features a blend of presentations from experienced practitioners who are actively involved in the repo market on day-to-day basis, with a sound explanation of the principles involved in this type of financing from the ICMA Centre. As well as covering the fundamentals of the repo product, the course addresses the uses and management of repo and collateral by banks, innovations in the market, the impact of the crisis on the repo market, regulatory issues and the latest developments in the clearing and settlement infrastructure of the market.

Register here

European Regulation: An Introduction for Capital Market Practitioners, London, 6 March
ICMA has launched a one day fast track course on European regulation for capital market practitioners. This course is aimed at sales people, traders, originators, syndicate personnel, and middle and back office staff who would benefit from a better understanding of the current regulatory landscape in the cross-border bond markets. It is specifically not aimed at lawyers or compliance staff. The focus of the programme is the cross-border capital markets and the bias is towards practitioners working largely with institutional rather than retail clients. The course provides updates on the major regulatory developments relevant to the market and will consider recent case studies in the regulatory crackdown.

Register here

Market Practice in Debt Capital Markets for Compliance Professionals - an ICMA Workshop, London, 18 March
This workshop aims to give compliance professionals an in-depth and thorough understanding of the current practices that are involved in launching a deal in the international debt capital market. It explains precisely how the deal is done, starting with first steps in the pre-launch process - looking at the pitch book, the mandate, the roadshow and the prospectus - through syndication, including book building and allocation, up to and including the final public launch of the issue.

Register here

The ICMA CBIC & The Covered Bond Report Conference, Frankfurt, 15 May
The ICMA Covered Bond Investor Council (CBIC) and The Covered Bond Report's 2014 Covered Bond Investor Conference will focus on topical investors' issues and provide an ideal opportunity for those wishing to engage in a constructive dialogue with the buy-side.

Register here

ICMA Annual General Meeting and Conference 2014, Berlin, 5-6 June
SAVE THE DATE!
  ICMA Executive Education
Book now for these ICMA Executive Education courses in first half 2014

ICMA Executive Education courses are accredited under the Solicitors Regulation Authority (formerly The Law Society's) CPD Scheme - please see ICMA website for details.


Part Ι: Introductory Programmes

Financial Markets Foundation Course (FMFC)
London: 7-9 May
Luxembourg: 2-4 June

Securities Operations Foundation Course (SOFC)
London: 25-27 February
Brussels: 19-21 March

Part ΙΙ: Intermediate Programmes

International Fixed Income and Derivatives (IFID) Certificate Programme

Barcelona, 27 April - 3 May

Operations Certificate Programme (OCP)
London, 23-29 March

Primary Market Certificate (PMC)
London, 19-23 May


Part ΙΙΙ: Specialist Programmes

Collateral Management
London: 3-4 March

Corporate Actions - An Introduction
London: 7-8 April

Corporate Actions - Operational Challenges
London: 9-10 April

Capital Market Overview of Islamic Finance & Sukuk
London: 9-10 June

Corporate Governance and Culture
London: 16-17 June

Further specialist level programmes will be announced shortly

ICMA Executive Education Skills Courses

Successful Sales
London: 1-2 May

The full 2014 course schedule is available here, www.icmagroup.org/Training-Development
  ICMA supported industry events
The Central and Eastern European Forum, Vienna, 14-15 January

20th Annual Congress of Financial Markets Operator ASSIOM FOREX, Rome, 7-8 February

IMN 7th Annual Global Covered Bonds Conference, London, 27-28 February

5th Annual Borrowers & Investors Forum, North Asia, Hong Kong, 5 March

City Week 2014, London, 31 March - 2 April

3rd Annual Collateral Management Forum, Vienna, 22 - 23 May

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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.

International Capital Market Association (ICMA) | Talacker 29 | 8022 Zurich | Switzerland
www.icmagroup.org