With an eventful summer behind us global capital markets are facing some additional challenges. Not least among these are the consequences of June’s UK vote to withdraw from the EU. As the details of the Brexit plan emerge ICMA will continue to work with our members and the authorities in the UK, the EU, the euro area and elsewhere, to ensure that our members’ views in the international capital markets are well represented. A briefing note on The UK vote to leave the EU: implications for capital market regulation was published in the Quarterly Report of 12 July. We have held two member-briefing calls on the topic and continually field questions on the ICMA Legal and Regulatory helpdesk.
Outside these specific UK/EU concerns, ICMA remains heavily engaged in the regulatory and market practice agenda in Europe focusing on analysing and assessing new regulation or practices in order to assist our members. In developing markets in Asia, and in Africa we continue to focus on standardisation and market practice work providing technical assistance in close collaboration with local authorities. Climate related risks are increasingly a matter for financial markets and green bonds have an important role in the transition to a sustainable economy. We are seeing increasing globalisation of the green bond market with Asian issuers at the forefront of developments here. ICMA’s recent launch of the Green Bond Principles for 2016 and substantial work with the growing Green Bond Principles community is helping to increase investor confidence in this expanding asset class.
 

Martin Scheck

ICMA Chief Executive

 

If you have any comments on this update or its contents please contact us at: ICMACorporateCommunications@icmagroup.org

 


 

New ICMA members
ICMA welcomed 10 new members in August:
ACTIAM N.V., Utrecht
China Central Depository & Clearing Co., Ltd., Beijing
Ernst & Young Hua Ming LLP, Beijing
PT Kliring Penjaminan Efek Indonesia (KPEI), Jakarta
RCB Bank Ltd, Limassol
Reaal Schadeverzekeringen N.V., Zoetermeer
SRLEV N.V., Alkmaar
The State Treasury of the Republic Finland, Helsinki
VIVAT N.V., Utrecht
Willkie Farr & Gallagher (UK) LLP, London

This takes total ICMA membership to 517 in 58 countries.
Contact: sanaa.clausse@icmagroup.org
 

2016 Update to the Green Bond Principles (GBP)
The recently released 2016 edition of the GBP benefits from the input of GBP members and observers, from working groups and the wider Green Bond stakeholder community, and also takes into account recent market developments. While the 2016 update continues to be framed by the same four core components (use of proceeds, process for project evaluation and selection, management of proceeds and reporting), a particular effort has been made to recommend best practice on reporting and external reviews, including the use of templates designed to be made available publicly to the market through a GBP Resource Centre hosted by ICMA. It is expected that this will add significantly to market transparency and clarify further the process of Green Bond issuer alignment with the GBP.
Guidance for Issuers of Social Bonds has been developed in conformity with the core components of the GBP, providing voluntary guidelines facilitating transparency and disclosure in this emerging segment.
ICMA is delighted to have received an award for its work with the Green Bond Principles. The Global Capital award for Most Valuable Innovation for the Green/SRI Bond Market, was presented at the The Euromoney/Global Capital Sustainable & Responsible Capital Markets Forum in Amsterdam on 6 September.
Contact: nicholas.pfaff@icmagroup.org
 
 
ICMA European Investment Grade Corporate Bond Secondary Market Study
ICMA has published its latest study into the current state and ongoing evolution of the European investment grade corporate bond secondary market. ‘Remaking the corporate bond market’ looks at how liquidity and market efficiency are being defined and impacted by the convergence of extraordinary monetary policy and unprecedented prudential and market regulation. The study is based on a series of in-depth interviews with market participants represented by ICMA, including investors, issuers, banks and broker-dealers, intermediaries and infrastructure providers – with the important addition of their quantitative input. It provides recommendations to support the long-term efficiency and functioning of the market, including: capital relief for market-making; revitalizing the single-name CDS market; reviewing and re-assessing harmful regulation; and bringing all market stakeholders together to share views and ideas on market structure and development.
Contact: andy.hill@icmagroup.org
 
 
Consultation on ICMA’s Buy-in Rules
ICMA has launched a consultation  to review and potentially update the ICMA Buy-in Rules under the Secondary Market Rules & Recommendations. This is in response to feedback from members with respect to the efficiency of the existing buy-in process in the current market environment.
Contact: andy.hill@icmagroup.org
 
 
Asia-Pacific
ICMA has been involved in 3 events in China this week following on from the G20 Summit in Hangzou. Green finance has been prioritized under China’s G20 Presidency, notably through the G20 Green Finance Study Group and through the Financial Stability Board’s Climate-Related Financial Risk Disclosure Task Force. ICMA was pleased to be a co-host and participant at the International Green Finance Forum held in Shanghai on 6 September. Also on 6 September ICMA co-organised a dinner and a roundtable for top executives at the main Chinese financial institutions on the integration of China with the global capital market with China (Shanghai) Pilot Free Trade Zone Lujiazui Administration Bureau and at the same time signed a cooperation protocol with them.
At the “Belt and Road Summit – Financing Through Silk Road Bonds” in Hong Kong, organised by ICMA with the Dagong rating agency on 8 September the focus was on the financing needs of infrastructure projects in the countries linked by the ‘One belt, one road’ initiative and how to bridge the gap in the current system by the creation of a new standardised asset class, the Silk Road Bond.
Contact: mushtaq.kapsi@icmagroup.org or ricco.zhang@icmagroup.org
 
ICMA will hold a 2 day GMRA workshop in Manila in the second week of September with the Money Market Association of the Philippines (MART), sponsored by the ADB and supported by the Bureau of Treasury. ICMA has recently signed an MoU on further co-operation with MART.
Contact:allan.malvar@icmagroup.org
 
ICMA and ASIFMA have published the ‘Guide to Infrastructure Financing in Asia’, which is the first comprehensive guide of its kind that outlines how infrastructure projects can be financed in Asia including through the capital markets. It is intended to help public authorities, project sponsors, project promoters and issuers interested in raising debt for infrastructure projects in Asia. It aims to provide practical guidance on raising debt finance through banks and the capital markets, taking into account planning and procurement issues in the transaction process. In particular, the guide focuses on the debt component of financing, rather than equity, and describes the relative merits of the bond markets and bank financing; certain considerations to be taken into account by public procurement authorities and private sector entities; and considerations relevant to procurement and planning.
Contact: mushtaq.kapasi@icmagroup.org


ICMA Africa Region
Monwabisi Zukani of The Standard Bank of South Africa Limited is the new Chair of ICMA’s Committee for the African region, the full list of committee members is on the ICMA website.

ICMA is organising a one-day repo and GMRA workshop for its members in Africa in Johannesburg on 6 October, which will cover fundamentals of the repo product and the use of the Global Master Repurchase Agreement. An ICMA primary market workshop including a panel discussion with local market participants, will run on 30 November also in Johannesburg.
Contact: candice.weinrich@icmagroup.org 


ICMA Asset Management and Investors Council
The AMIC produces a weekly update on its activities and developments affecting the buy-side, all ICMA members are welcome to sign up to receive the update e-mails.
Contact: amic@icmagroup.org
 
CFA accreditation for ICMA Executive Education
Now that ICMA EE is an approved provider with the CFA Institute’s Continuing Education (CE) programme, candidates who complete an ICMA EE qualification or training programme will receive credit hours against current or future programme with the CFA. See the autumn course schedule below.
Contact: stacey.donoghue@icmagroup.org
 
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 3rd Quarter 2016 which was published on 12 July 2016. The Quarterly Report for the 4rd Quarter will be published in October.
 
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 June/July 2016
 
6 July 2016 The ICMA European Repo and Collateral Council (ERCC) has submitted a detailed response to the BCBS’s consultation on proposed revisions to the design and calibration of the Basel III leverage ratio framework.
 
24 June 2016 The ICMA ERCC has submitted a detailed response to the Commission service’s targeted consultation on further considerations for the implementation of the Net Stable Funding Ratio (NSFR) in the EU. 
 
 
   
 
 

ICMA Legal and Regulatory

Helpdesk numbers

(ICMA members only)

 

+44 20 7213 0341 (London)

+41 44 360 5237 (Zurich)

+852 2531 6590 (Hong Kong)

 

For legal queries: legalhelpdesk@icmagroup.org

For market practice and regulatory policy queries: regulatoryhelpdesk@icmagroup.org

 


 

ICMA Events

The autumn events and education schedule is already underway with more than 40 conferences, courses, seminars and social events taking place around Europe and Asia.
The ICMA European Repo and Collateral Council general meeting taking place at Bondlend in London’s Canary Wharf district on 27 September will feature an opening keynote speech by Mark Yallop, Chair of the FICC Market Standards Board, on: “Regulation, Ethics and Standards in wholesale financial markets”.
In Frankfurt the 8th Annual bwf and ICMA conference on 29 September will give a German perspective on developments in capital markets and then on 26 October members will have an opportunity to hear a discussion between Frank Czichowski, Treasurer of KfW and Martin Egan, Global Head of Primary Markets & Origination and Chair of ICMA’s Primary Market Practices Committee on the outlook for debt issuance in the short to medium term.
Our Future Leaders programme will also be running networking events in Europe this autumn for our members, join the ICMA Future Leaders on LinkedIn for more information.

 


 

ICMA Events and Workshops in September/October

ICMA Workshop: Ethics and the Capital Markets
London, 13 September

ICMA Future Leaders networking event: Opportunities for a post Brexit career in financial services
London, 20 September
 
ICMA Workshop: Repo and securities lending under the GMRA and GMSLA
London, 20-22 September

ICMA Workshop: European Regulation: An introduction for Capital Market Practitioners
London, 18 October
 
ICMA Workshop: Bond syndication practices for compliance professionals and other non-bankers
London, 27 October
 
Contact: shannelle.rose@icmagroup.org


 

ICMA supported event
IMF/WORLD BANK ANNUAL MEETINGS BREAKFAST SEMINAR
Thomson Reuters IFR is holding a special breakfast seminar on the morning of Saturday October 8 2016 at the Capital Hilton, Washington, DC - Titled India's Path to Sustainable Growth: Opportunities and Challenges – Register here
 

ICMA Executive Education

Introductory Qualifications

Financial Markets Foundation Qualification (FMFQ)
London: 2-4 November 2016
 
Financial Markets Foundation Qualification (FMFQ) Online
Next start date: 1 November (register by 26 October 2016)
 
Introduction to Fixed Income Qualification (IFIQ)
London: 19-21 October 2016
 
Introduction to Primary Markets Qualification (IPMQ)
London: 24-26 October 2016
      
Securities Operations Foundation Qualification (SOFQ)
Brussels: 9-11 November 2016

Securities Operations Foundation Qualification (SOFQ) Online
Next start date: 1 November (register by 26 October 2016)

Intermediate Qualifications

ICMA Fixed Income Certificate (FIC)
Barcelona: 23-29 October 2016
 
Operations Certificate Programme (OCP)  
Brussels: 13-19 November 2016

Primary Market Certificate (PMC)
London: 21-25 November 2016

Training Programmes
 
Collateral Management
London: 17-18 October 2016
 
ICMA Guide to Best Practice in the European Repo Market
London: 31 October 2016
 
Trading & Hedging Short-term Interest Rate Risk
London: 8-9 November 2016
 
Trading the Yield Curve with Interest Rate Derivatives
London: 10-11 November 2016
 
Inflation-linked Bonds & Structures
London: 29-30 November 2016
 
Credit Default Swaps – Pricing, Application & Features
London: 5-6 December 2016
 
Credit Default Swaps – Operations
London: 7 December 2016

Securities Lending & Borrowing – Operational Challenges
London: 12-13 December 2016

For more information, please contact: education@icmagroup.org
or visit www.icmagroup.org/executive-education

 


 

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