ICMA Update for Members - December 2018
For many of our members 2018 has been a challenging year as they navigate through the choppy waters of the financial markets buffeted by events beyond their control. It has seen the end of the ECB’s huge quantitative easing programme, rising rates in the US, global trade tensions, market fragmentation, Brexit negotiations, and a difficult geopolitical situation. The outlook for the fixed income markets in 2019 is by no means clear. At ICMA most of the workstreams in which we are currently involved are multi-year projects and will continue. But undoubtedly other issues which affect our markets and our members’ day to day business will arise, and we will need to remain nimble to address them and serve our members as well as we possibly can.

Many thanks to you, our members, and to all those individuals who have worked with us this year for your support. We wish you health and success in 2019!

Martin Scheck
ICMA Chief Executive
If you have any comments on this update or its contents, please contact us at: ICMACorporateCommunications@icmagroup.org

New members

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.
Contact: sanaa.clausse@icmagroup.org


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

Recent publications

Primary Market Handbook update
Several updates to the ICMA Primary Market Handbook were published on 19 December 2018. 
Contact: ruari.ewing@icmagroup.org or charlotte.bellamy@icmagroup.org
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
Contact: gabriel.callsen@icmagroup.org

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. 
Contact: david.hiscock@icmagroup.org

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.
Contact: andy.hill@icmagroup.org

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.
Contact: leland.goss@icmagroup.org
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. 
Contact: ricco.zhang@icmagroup.org

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.
Contact: patrik.karlsson@icmagroup.org or bogdan.pop@icmagroup.org
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.
Contact: lisa.cleary@icmagroup.org

Sustainable finance

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.
Contact: greenbonds@icmagroup.org

Regulatory responses

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.
Contact: charlotte.bellamy@icmagroup.org

ICMA response to ESA’s Joint Consultation Paper concerning amendments to the PRIIPs KID
Contact: ruari.ewing@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 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.

ICMA Future Leaders essay competition winner

This summer ICMA asked young professionals with a maximum of 8 years of experience in financial markets to write an essay on the broad theme ‘How will the international bond markets look in 10 years’ time?’ ICMA’s 60th anniversary in 2028.
The ICMA Executive Committee, market practice and regulatory policy team and representatives of the Future Leaders Committee have chosen the winning essay, written by Alexander Malitsky of TD Securities, who will receive the €3,000 prize and also have the opportunity to present his paper to the ICMA Board.

ICMA Future Leaders

The ICMA Future Leaders Committee has appointed: two vice-chairs Rebekah Bray from Nordea and Alejandro Martin Parrilla from Banco Santander. We also welcomed new members from the regions on the committee who joined in 2018.
Contact: futureleaders@icmagroup.org

The ICMA Future Leaders invite all ICMA members to their first event in Madrid on 23 January 2019. The event will feature Alejandro Torchia, ED Santander and Certified Coach, who will share his insights on how to further develop your career and progress in today’s financial market industry.
Join us to hear not only Alejandro’s expert career advice but also to network with your peers.
Contact: shannelle.rose@icmagroup.org

ICMA Legal and Regulatory

Helpdesk numbers

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+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

Get Involved!

New to the industry? Read Get involved! our quick guide to the international capital market and how to engage with ICMA.

ICMA Events

Thinking ahead, the 2019 events schedule is taking shape – book now for these events in the New Year!
Yves Mersch, Executive Board Member of the European Central Bank, will be our featured keynote speaker at the 2019 ICMA ERCC AGM on 31 January in Luxembourg.
The Japan Securities Dealers Association (JSDA) and ICMA will co-host the 5th Japan Securities Summit on 4 March 2019 at the Mansion House in London. Featuring contributions from high profile speakers from the Japanese market, government and central bank, providing European investors and financial market professionals with insights on the outlook for the Japanese economy and the latest developments in the Japanese securities markets with particular focus on issues affecting sustainable growth as well as the potential impacts of Brexit.
Our inaugural ICMA Secondary Market Forum will be held in Paris on 20 March (registration opens January). It will be an opportunity to hear, and participate in, discussions on the critical issues facing the European bond markets and the key drivers of evolving market structure. Issues and topics covered will include MiFID II/R implementation and its impact, the unwinding of ECB quantitative easing, the practical implications of Brexit, developments in technology and electronic trading, as well as the rapidly evolving economic and geopolitical landscape.
The ICMA Women’s Network has already scheduled three networking events around Europe in the first quarter of the new year: We will be running three events on developments in the primary markets in the first half of the year, in Hong Kong on 26 February, in Mumbai on 7 March and in Manama on 13 March.

ICMA Executive Education

The full 2019 schedule has also been confirmed so you can book your place now for any of our flagship programmes in Primary Markets, Secondary Markets and Operations.

ICMA EE also offers online qualifications in operations and fixed income, including the ICMA Fixed Income Certificate (FIC), available every month on our online platform.

To book your place on ICMA EE online or classroom courses visit www.icmagroup.org/EE


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