ICMA membership at a 15-year high
ICMA welcomed 13 new members in June:
A&L Goodbody, Dublin
Banco Finantia SA, Lisbon
Burgan Bank A.Ş., Istanbul
China Foreign Exchange Trade System (CFETS), Shanghai
Citigroup Global Markets Inc., New York
Dagong Global Credit Rating (Hong Kong) Co., Ltd., Hong Kong
Dechert LLP, Philadelphia
Japan Post Bank Co., Ltd., Tokyo
Kerman & Co LLP, London
Murex S.A.S., Paris
TD Bank N.V., Amsterdam
This takes total ICMA membership to 508.
2016 Members Register
The 2016 Members Register has been printed and is being dispatched to members.
For additional copies please contact: firstname.lastname@example.org
ICMA members elect new board line-up at Dublin AGM
The AGM voted to increase the number of ICMA Board members from 16 to 22 to allow balanced representation of the full scope of ICMA’s activities, which in recent years have extended significantly in terms of constituents, products and also in terms of the geographical location of members.
The following were elected to the ICMA Board in Dublin: Godfried de Vidts, ICAP Securities Ltd, London; Sian Hurrell, RBC Europe Limited, London; Roman Schmidt, Commerzbank AG, Frankfurt; Yu Sun, Bank of China Ltd, London; Camilla Tinari, Intesa Sanpaolo SPA, Milan, Joanna Cound, BlackRock Investment Management UK Ltd, London; John Langley, Barclays Bank plc, London; Marc Baigneres, JP Morgan Securities plc, London; and Mark Tempelman, Bank of America Merrill Lynch, London.
ICMA paper on innovative trading practices and technologies and the new market entrants shaping the electronic bond trading landscape in Europe
Bond trading in Europe is experiencing a period of intense, evolutionary change in response to regulatory pressures and fintech developments. Firms are re-shaping business strategies and undergoing consolidation due to lack of returns in fixed income. With the reduction in trading and sales teams, more and more electronic trading tools and platforms are being used to reach investors. ‘Evolutionary change: the future of electronic trading in European cash bonds’ identifies new strategies that are emerging for both buy and sell side participants trading in this market and the options available from platforms and technology providers in the new environment.
The latest Financial Stability Review from the Banque de France analyses the new situation created by the digital era of the financial system for financial institutions, markets and regulators. It includes an article based on the ICMA report on the future of electronic trading in cash bond markets.
Consultation to revise the ICMA Buy-in Rules
In the coming months ICMA will launch a consultation for members, under the guidance of the Secondary Market Practices Committee, to review and potentially revise the ICMA Buy-in Rules. The aim will be to improve the efficiency and transparency of the by in-process, while also supporting the possibility for a buy-in auction mechanism.
EFAMA/ICMA fund liquidity report outlines tools available to manage liquidity risk
ICMA’s Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published a report on the legislative requirements and market-based tools available to manage liquidity risk in investment funds in Europe. The report was written in response to public concerns that liquidity has become more fragmented, whether as a result of the reduced role of banks as market makers and liquidity providers or the prolonged accommodative monetary policy of the world’s most prominent central banks and offers some recommendations to further improve the general liquidity management environment.
ICMA 2nd European IG Corporate Bond Secondary Market Study
ICMA’s new study into the current state and ongoing evolution of the European investment grade corporate bond secondary market is underway and due for publication in the summer. As in the previous study, ICMA will rely on the active participation and input of its member firms, including broker-dealers, asset managers and investors, corporate and financial issuers, as well as platform providers and intermediaries. We would be delighted to hear from you if you would like to be included.
2016 Update of ICMA legal opinions on GMRA
The 2016 legal opinions, which support the Global Master Repurchase Agreement (GMRA), the standard agreement used for international repo transactions are now available to ICMA members. The 2016 opinions support the use of the GMRA in over 65 jurisdictions worldwide.
ICMA in Asia
In addition to its ongoing work programme in primary markets and repo, the ICMA Asia-Pacific office is working on the Green Bond agenda, through further involvement and contribution to the G20 green finance study group. The ICMA-NAFMII panda bond study is still in progress and we would appreciate any further input from issuers to our online survey.
ICMA has recently concluded an MoU with the Money Market Association of the Philippines (MART) which has a total of 64 member institutions consisting of banks and non-bank financial institutions that actively trade fixed income securities in the market. As with similar MoUs in local markets around the world we look forward to a close relationship and a two-way exchange of information relating to capital market practices, regulation, training and research.
ICMA in Africa
ICMA will deliver its second training workshop on the GMRA in Nairobi on June 14 and 15 for the Central Bank of Kenya and key market participants. The workshops have been sponsored by Frontclear, a development agency focused on developing interbank markets in emerging and frontier markets.
ICMA is assisting the development of other repo markets in Africa, including Nigeria.
Market Practice and Regulatory Policy
For a full list of ICMA’s Market Practice and Regulatory Policy experts and their areas of expertise click here.
More detailed information on ICMA Market Practice and Regulatory Policy work on behalf of members can be found in the ICMA Quarterly Report for the 2nd Quarter 2016 which was published on 8 April 2016. The Quarterly Report for the 3rd Quarter will be published on 12 July.
The 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.
Consultation responses and briefing notes April/May 2016
The Market Abuse Regulation (MAR) is due to come into force on 3 July. The implications of MAR for pre-sounding and stabilisation in primary markets are covered in the latest ICMA Quarterly Report. ICMA has produced a briefing note on MAR’s potential impact on Investment Recommendations.
3 April ICMA with four other associations jointly published a statement that can be used to help market participants comply with new requirements under the European Union’s Securities Financing Transaction Regulation (SFTR).
4 April The ICMA ERCC Operations Group submitted a response to an ECB consultative report on the services provided to market participants as part of its Real Time Gross Settlement System (RTGS). The consultation focuses on potential synergies between the TARGET2 and TARGET2-Securities.
18 April The ICMA ERCC submitted its response to the FSB's consultative proposals on Possible Measures of Non-Cash Collateral Re-use.
22 April The ICMA ERCC has submitted a detailed response to ESMA’s Discussion Paper on Draft Regulatory and Implementing Technical Standards under the EU SFT Regulation.
29 April ICMA published a briefing note entitled 'Further thoughts on the ECB’s Corporate Sector Purchase Programme', following the announcement of details of the Programme on 21 April.
23 May ICMA Covered Bond Investor Council responds to Review of the Covered Bond Label Harmonised Transparency Template – 2016.
8 June ICMA published website resources page on Distributed ledger technology/blockchain.