ICMA Update for Members - November 2018
As Brexit approaches, we remain concerned about the impact on our members of cliff-edge risks which would arise in international capital markets when the UK leaves the EU next month if there is no agreement between the EU27 and the UK, or at the end of the transition period even if there is an agreement. We have provided an update in the ICMA Quarterly Report for the First Quarter of 2019, published in January.
We have published responses to Frequently Asked Questions, considering certain issues that have been raised with ICMA about Brexit (password required) and are updating these as relevant information becomes available.

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 in 2019
Bank of Ghana, Accra
Barclays Bank UK PLC, London
Basler Kantonalbank, Basel
BNP Paribas Securities Services, Paris
Capula Investment Management LLP, London
Export Development Canada, Ottawa
ICICI Bank Limited, Mumbai
Industrial and Commercial Bank of China Limited, Beijing
Islamic Development Bank, Jeddah
JPMorgan Asset Management (UK) Limited, London
Kerdos Investment-AG TGV, Düsseldorf
Kotak Mahindra (UK) Limited, London
Nivaura Ltd, London
South Street Securities LLC, New York
Sumitomo Mitsui Banking Corporation Europe Limited, London
Tokai Tokyo Securities Europe Limited, London

ICMA now has 558 members in 62 countries.
New Chair and Vice-Chairs of ICMA French Region
We are very pleased to welcome Jean-Luc Lamarque, Crédit Agricole Corporate and Investment Bank as Chair and Imène Rahmouni-Rousseau, Banque de France and Marc-Etienne Sebire, CMS Francis Lefebvre as Vice-Chairs of the ICMA France and Monaco Regional Committee, joining existing Vice-Chair, Ibrahima Kobar, Ostrum Asset Management.
Asset Management & Investors Council (AMIC)
2019 has already produced a flurry of papers from the AMIC, the voice of ICMA’s buyside members. With the European Fund and Asset Management Association (EFAMA) AMIC published a joint report on Liquidity Stress Testing (LST) in investment funds. This highlights the role of stress tests as an important risk management tool allowing the fund manager to assess the impact of different market stresses at the portfolio level. It also outlines the long-standing standard practices in the fund industry and the existing comprehensive requirements foreseen by European and national laws. The report also finds that existing rules governing stress testing, notably the UCITS Directive and AIFMD, are already at an advanced level and provide robust and appropriate liquidity risk management processes.
AMIC has issued a guide to due diligence requirements for investing in a securitisation position. The guide is designed as a starting point for new investors who are interested in securitisation to understand the new due diligence requirements which came into effect on 1 January 2019 under the Securitisation Regulation. The guide covers the following aspects:
  • due diligence requirements prior to holding securitisation;
  • where to find the relevant information; and
  • ongoing due diligence and monitoring requirements.

Secondary markets

ESMA has published a statement on the use of UK data in ESMA databases and the performance of MiFID II calculations under a no-deal Brexit. An ICMA briefing note summarizes the key points with respect to bond markets. 

Contact: andy.hill@icmagroup.org
ICMA’s  Electronic Trading Council brings together representatives of the electronic trading ecosystem for interactive dialogue with fixed income trading participants. It is setting up task forces to work on the following areas: definition of electronic trading, automation and algos; the application of automation and algos including AI and; axe distribution best practice.
A year on from implementation, the MiFID Data Working Group has two active member-led task forces, one looking at improving post-trade transparency data quality and another on usable field and best execution reports.

Contact: elizabeth.callaghan@icmagroup.org

Repo and collateral

ICMA’s European Repo and Collateral Council documented and analysed repo market behaviour through the 2018 year-end. Compared with the previous two year-ends, 2018 was relatively uneventful. Core Euro GC and specials did come at a premium leading up to the turn but then cheapened significantly into the year-end itself. Meanwhile, non-core GC saw scarcely any impact, with only some specials becoming difficult to find. The short-date gilt repo market tightened slightly, though term spreads widened notably, seemingly caused by the introduction of UK bank ring-fencing. The US treasury repo market, however, was the real surprise, with an unexpected scramble for cash sending rates notably higher.
While the markets, for the most part, were fairly orderly, it is clear that a number of year-end pressures and risks persist. However, since 2016 it would seem as if the market has become more aware of these and better prepared in terms of managing its year-end financing and collateral requirements.

Contact: andy.hill@icmagroup.org
The enormously popular FAQs on repo have been thoroughly revised and updated to reflect latest market practice and current regulation. These 41 questions (and answers) cover essential knowledge on repo and the repo market from Question 1 “What is a repo?” through to Question 41 “Repo, OTC or Exchange traded”? You can hear Richard Comotto the author of the FAQ in action later this month, lecturing on ICMA’s three day workshop Repo and securities lending under the GMRA and the GMSLA
More than 300 repo market participants attended the ERCC Annual General Meeting in Luxembourg on 31 January, for a comprehensive update on regulatory developments and recent legal discussions, including implications of Brexit. They also heard Yves Mersch of the ECB on The possible triangle: frictionless movement of payments, securities and collateral across Europe.

The new ERCC Committee of 19 individuals was elected on 6 February, with a term of office of approximately one year.

Contact: alexander.westphal@icmagroup.org; andy.hill@icmagroup.org

Sustainable finance
The NEW Green Bond Principles and Social Bond Principles Helpdesk offers members informal guidance on questions related to green, social and sustainability bonds specifically relating to the interpretation and application of the Principles themselves (and the Sustainability Bond Guidelines).

We can also help with queries on the other documentation and services that are publicly available on the website including the Green, Social and Sustainability bonds database of issuers who have publicly disclosed their external review reports and mapping to the UN Sustainable Development Goals

A list of helpful Questions and Answers relating to the GBP, SBP and SBG is also available together with a list of FAQs about green bonds more generally, including other standards and initiatives. 
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 4 & 5 April.
For more detailed developments and statistics on the green and social bond market check the GBP SBP newsletter.
Contact: greenbonds@icmagroup.org

Regulatory responses
1 February 2019
ICMA’s feedback response to European Commission’s report on climate-related disclosure by the Technical Expert Group on sustainable finance
1 February 2019
ICMA AMIC response to IOSCO Report: Leverage Consultation Paper

31 January 2019
ICMA response to the FCA consultation on climate change and green finance
21 January 2019
ICMA response to UK Competition and Markets Authority’s statutory audit services market study update paper
21 December 2018
ICMA feedback to the European Commission on the draft Prospectus Regulation Level 2 delegated regulation and annexes.

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 First Quarter 2019  published on 10 January. The ICMA Quarterly Report for the Second Quarter of 2019 will be published on 11 April.
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 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

Green Bond Principles and Social Bond Principles Helpdesk
(ICMA members and members/observers of the Principles only)
+33 1 70 17 64 70


ICMA’s committees & councils
We carry out our work programme through these member committees and councils, click on the link to see what they are working on and who is represented there.

ICMA Regulatory Policy Committee (RPC) 

Primary markets
Public Sector Issuer Forum (PSIF) 
ICMA Corporate Issuer Forum (CIF) 
ICMA Financial Institution Issuer Forum (FIIF) 
ICMA Primary Market Practices (PMPC) Committee 
ICMA Asia Bond Syndicate Forum 
ICMA Legal and Documentation (LDC) Committee 
ICMA Asia Legal & Documentation Forum 
ICMA Euro Commercial Paper (ECP) Committee 

Secondary markets
ICMA Secondary Market Practices Committee (SMPC) 
ICMA Electronic Trading Council (ETC) 
Repo and collateral markets
ICMA European Repo and Collateral Council and Committee (ERCC) 

Green, Social and Sustainability bonds
Green Bond Principles and Social Bond Principles Executive Committee 
Asset management
ICMA Asset Management and Investors Council (AMIC) 
ICMA AMIC Covered Bond Investor Council (CBIC) 

Calling Future Leaders
We have just welcomed Anna Tomlinson KBC as the new Belgian representative to the Future Leaders Committee, but we are still looking for representatives from the UK and Italian regions. The Future Leaders aim to bring together professionals at the early stages of their careers in financial markets, the committee helps to organise events and looks at how ICMA can reach out to its junior members.

Contact: allan.malvar@icmagroup.org

ICMA Events
March highlights
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.

The 7 March AMIC conference in Amsterdam is open to all on the buy-side and will an opportunity to hear directly from the international investment community about the challenges they are facing. The conference will feature a discussion on the Pan-European personal pension product (PEPP), the future of sustainable finance in an evolving regulatory landscape and systemic risk in asset management.
Our inaugural ICMA Secondary Market Forum will be held in Paris on 20 March. 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.
ICMA events for primary bond markets
Bond issuance, from the regulatory and the business perspective, is at the core of our members interests. We’ll be rolling out three Primary Market Forums in the Middle East and Asia in February and March, where international and local experts will look at new products, issuing trends, documentation, changing interest rate benchmarks and regulation.
ICMA Asia Primary Market Seminar & Forum, Hong Kong, 26 February
ICMA India Primary Market Forum & Workshop, Mumbai, 7 March
ICMA Primary Market Forum – the MENA bond markets, Manama, 13 March
More firsts for the ICMA Women’s Network!
The IWN will be running events on 27th February in two new locations. In Brussels Kay Swinburne MEP will be joining us to discuss her career path, the barriers she encountered along the way and how she has managed to navigate a successful career firstly in investment banking, and secondly as a Member of the European Parliament. And in Hong Kong, a panel of inspirational industry figures will be discussing where their careers began and how they adapted to succeed.

ICMA Executive Education (EE)

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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