ICMA is pleased to welcome new members who have recently joined:
Citigroup Global Markets Europe AG, Frankfurt
National Bank of Bahrain BSC, Manama
Dorsey & Whitney LLP, Hong Kong
ICMA has today 550 members in 62 countries
ICMA, together with ISDA, FIA and AFME wrote to the European Commission
to welcome and seek further clarification on the statement regarding temporary equivalence and recognition for UK CCPs in the European Commission’s Communication regarding Brexit Contingency Planning published on 13 November and the statement by ESMA published on 23 November.
On 19 December, the Commission adopted a temporary and conditional equivalence decision for 12 months from Brexit, if the EU27/UK Withdrawal Agreement is not ratified, to ensure that there will be no disruption in central clearing of derivatives and to allow ESMA to recognise temporarily CCPs established in the UK, allowing them temporarily to continue providing services in the EU. The Commission also adopted another temporary and conditional equivalence decision for 24 months from Brexit to ensure that there will be no disruption in services provided by UK CSDs, temporarily allowing them to continue providing notary and central maintenance services to operators in the EU.
ICMA has also published responses to Frequently Asked Questions
, considering certain issues that have been raised with ICMA in the light of the UK’s proposed exit from the European Union
Primary Market Handbook update
Several updates to the ICMA Primary Market Handbook were published on 19 December 2018.
Primary markets technology mapping directory
ICMA’s new primary markets technology mapping directory
compares the key features and capabilities of over 20 technology solutions that are available for a range of functions within the issuance process of debt securities. Building on our work in relation to electronification in primary bond markets, the directory’s purpose is to inform ICMA members of existing and emerging platforms and technology solutions, and thereby create greater transparency. This initiative complements ICMA’s mappings of Electronic Trading Platforms
as well as FinTech solutions for repo and cash bond operations
GFMA and ICMA repo market study
The Global Financial Markets Association (GFMA) and ICMA published a repo market study on Post-Crisis Reforms and the Evolution of the Repo and Broader SFT Markets
, which assesses the impact of post-crisis regulation on the functioning of the global repo and securities financing transactions (SFT) markets. It provides a broad account of the global repo market’s operation during the crisis and analyses the subsequent regulatory reforms. It finds that they have had a profound impact on banks’ SFT businesses with a significant increase in capital requirements, which could detrimentally impact the securities lending market and the way the repo market functions under stressed scenarios.
MiFID II and the bond markets – the first year
This new ICMA report
, which draws on input from ICMA’s diverse membership who are active in the European securities markets, is intended to provide an overview of the first year of MiFID II/R from the perspective of bond markets, covering primary market issuance, secondary market trading, and research distribution and consumption. Its main conclusion is that, while the European bond markets continue to function, MiFID II/R is yet to deliver on its objectives of improved investor protection, greater transparency, and a more competitive landscape.
Indicative Terms and Conditions for Sovereign Hurricane Bonds and Loans
Clifford Chance and ICMA, together with International Monetary Fund staff and other interested parties are working to develop sovereign bonds and loans that include a debt reprofiling feature. The draft indicative terms for sovereign hurricane bonds and loans are a work-in-progress and are on the ICMA website
. Interested parties are encouraged to give comments to ICMA.
Adopting international practices for bond trustee arrangements in China
NAFMII, the self-regulatory organisation for the China OTC market, and ICMA have published a guide
which sets out international bond trustee arrangements and their application worldwide along with global practices of bond trustee services. It highlights how a bond trustee structure, adapted to the needs of the Chinese market, may have a role to play in creating safeguards for bond investors and in reducing overall capital market and systemic risk.
AMIC FICC research unbundling survey
The results of the second AMIC FICC Research Unbundling
survey were released at the AMIC meeting in London. The purpose of the survey is to help improve market clarity on this topic, identify remaining challenges, difficulties and outstanding issues in the implementation of the new MiFID II research rules and to establish progress compared to the first survey issued in 2017.
New legal opinion for Romania
Following the recent announcement of a new legal opinion for Mauritius, ICMA has published a GMRA legal opinion
for Romania. Access to the legal opinions that underpin the Global Master Repurchase Agreement in 65+ jurisdictions is one of the tangible benefits of ICMA membership.
Around 500 delegates attended the Annual ICMA and JSDA Joint Conference: Developments in Green and Social Bond Markets – The Asian Perspective
, in Tokyo on 11 December, where they heard Minoru Kiuchi, the Japanese State Minister of the Environment announce a new Green Bond issuance platform to complement the MoE green bond guidelines. Other notable speakers included: Masamichi Kono, Deputy Secretary-General, OECD; Jun Ohta, Director, Deputy President and Executive Officer, (Representative Executive Officer) Group CFO and Group CSO, SMFG; and Akira Kiyota, Director & Representative Executive Officer, Group CEO, Japan Exchange Group, Inc.
SAVE THE DATE: 2019 Green and Social Bond Principles Annual General Meeting and Conference
, Frankfurt, 13 June 2019
Our next Introduction to Green Bonds Training Course
will run in London on 11-12 February.
ICMA’s Legal and Documentation Committee responded to the ARRC consultation
regarding more robust LIBOR fallback contract language for new issuances of USD-LIBOR floating rate notes.
ICMA response to ESA’s Joint Consultation Paper concerning amendments to the PRIIPs KID
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 Fourth Quarter 2018 published on 11 October 2018. The ICMA Quarterly Report for the First Quarter of 2019 will be published on 10 January.
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.