2020
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2015
ICMA ERCC responds to ESMA’s consultation on its First Report on Central Clearing Solutions for Pension Scheme Arrangements

15 June 2020 ICMA’s ERCC has submitted its response to the ESMA consultation on its First Report on Central Clearing Solutions for Pension Scheme Arrangements. The ERCC has limited its response to the Questions related to Section 6.3 of the report: The market-based repo solution.



ICMA responds to ESMA's consultation paper on MiFID II/ MiFIR review report on the transparency regime for non-equity and the trading obligations for derivatives

12 June 2020 ESMA recently reached out to the industry for consultation and feedback regarding effective application of transparency rules and whether the provisions in MiFID II/R have delivered on their objectives. ESMA also sought out reaction to its liquidity assessment. In particular, whether it is appropriate to move to the next stage of liquidity assessment, e.g. lowering the required number of average daily bond trades.

ESMA’s findings will be submitted in a report to the European Parliament and to the Council on the impact in practice of the transparency obligations.

ICMA welcomed the opportunity to provide ICMA member (buy-side, sell-side and trading venue) consensus feedback to ESMA. Of particular interest to members in responding to this MiFID II/R  transparency consultation were: pre- and post-trade transparency, verifiable data sets and resultant data and liquidity assessment methodology. ICMA responded solely in relation to cash bonds.

View the response.



ICMA preliminary thoughts on the Report of the High Level Forum on the Capital Markets Union

12 June 2020 ICMA has published its preliminary thoughts on the Report of the High Level Forum on the Capital Markets Union.



ICMA responds to EC consultation on the Review of the Non-Financial Reporting Directive (NFRD)

11 June 2020 ICMA today submitted its response to the NFRD review consultation. Both ICMA's Corporate Issuer Forum and the Asset Management and Investors Council support the review, which provides the opportunity to achieve a greater level of standardisation of ESG disclosures, a perequisite to deliver on the EU sustainable finance action plan.



Green & Social Bond Principles publish Sustainability-Linked Bond Principles and update the Social Bond Principles and other key guidance

9 June 2020 The Green & Social Bond Principles released Sustainability-Linked Bond Principles (SLBP) at their 6th Annual General Meeting today. These are voluntary guidelines for sustainability-linked bonds (SLBs) defined as forward-looking performance-based bond instruments where the issuer is committing to future improvements in sustainability outcomes within a predefined timeline. The financial and/or structural characteristics of SLBs can vary depending on whether the issuer achieves those predefined Sustainability Performance Targets. Within these parameters, the use of funds for SLBs are intended for general purposes rather than for underlying sustainable projects as in the case of existing green, social and sustainability bonds.

SLBs are highly versatile instruments that can be applied to many sustainability topics, in particular climate change mitigation and adaptation. Surveys conducted by the Green & Social Bond Principles have confirmed the need for a bond instrument linked to an issuer’s sustainability strategy and ambitious, credible targets, including those connected to climate transition. They also indicate that market participants expect any debt finance for climate transition to be aligned with the goals of the Paris Agreement.

The Green & Social Bond Principles further released a 2020 update of the Social Bond Principles providing expanded social project categories and additional target populations, and also incorporating recent guidance for social bonds addressing the COVID-19 crisis. Separately, a collection of Social and Sustainability Bond Case Studies has been published. The Green Bond Principles and Sustainability Bond Guidelines remain otherwise unchanged (2018 versions remain applicable).

The following publications have also been updated:
Every year half of the Executive Committee of the GBP & SBP (in each of its issuer, underwriter and investor categories) is renewed through an election with a vote of its near 200 members representing the vast majority of participants in the sustainable debt capital markets. View the resulting composition of the Executive Committee for 2020.

Martin Scheck, Chief Executive of the International Capital Market Association (ICMA), said: "By publishing Sustainability-Linked Bond Principles, the GBP & SBP Executive Committee is providing guidance for a highly innovative and versatile debt instrument that can really expand the sustainable finance market while preserving its integrity. Separately, the update of the Social Bond Principles accompanies a pivotal moment for social bonds that have shown their relevance with a surge of issuance addressing the consequences of COVID-19."
 
Lars Eibeholm, Member of NIB's Executive Committee, and Chair of the GBP & SBP said: "The many key deliveries today demonstrate that the market for green, social and sustainability bonds continues to evolve and so does the need for prudent guidance. We have published new Principles for sustainability-linked bonds and delivered a market-based consensus on how climate transition is perceived. A new instrument and an important terminology, which will be key building components for further development, market integrity and transparency. All required, as sustainable finance will need to be more targeted to address the pandemic and at the same time tackle the emerging climate threats. The relevance of targeted bonds has clearly been demonstrated in the surge of social bonds, where today’s important updates of the Social Bond Principles provide new improved guidance."  

Tanguy Claquin, Managing Director, Crédit Agricole CIB, and Vice-Chair of the GBP & SBP said: "This year’s deliveries show, once again, that the Green & Social Bond Principles are the key forum where market guidance and best practices are discussed and decided for the global sustainable fixed income markets."
 
Johanna Köb, Head of Responsible Investment at Zurich Insurance and Vice-Chair of the GBP & SBP said: "Green bonds are not 'only' a debt capital instrument – they were the beginning of a transformative journey. This year the GBP & SBP took a leap forward in its vision to provide guidance for debt capital market instruments that finance progress towards environmental and social sustainability. We expanded our recommendations from the well-known family of use-of-proceeds instruments (green, social and sustainability bonds) to a new sustainability-linked performance instrument. We are committed to continue providing best-practice guidance to all market participants through an inclusive process, which is underpinned by many diligent working groups and a new advisory council, which has set a precedent in showing extraordinary commitment and enthusiasm."



ICMA publishes update memorandum to the 2020 ICMA GMRA legal opinion for Russia relating to moratorium measures introduced to the Bankruptcy Law

ICMA has published an update memorandum to the 2020 ICMA GMRA legal opinion for Russia relating to moratorium measures introduced to the Bankruptcy Law.

The document is available alongside the Russian opinion here (ICMA members only).



First edition of ICMA’s FinTech Newsletter – read about our work and other market news on FinTech and market electronification

We are pleased to share the first edition of ICMA’s newsletter focusing on our work from a FinTech and market electronification perspective. We intend to bring our members up to speed on our cross-cutting technology initiatives across our key market areas and provide insights into regulatory updates, consultation papers, news and other publications, and upcoming meetings and events.

To receive future editions of this newsletter, please subscribe or update your mailing preferences and select FinTech, or contact us at FinTech@icmagroup.org.



ICMA issues report on performance of the European investment grade corporate bond markets during the COVID-19 crisis

28 May 2020 A new report published today by the International Capital Market Association (ICMA) documents the performance of the investment grade secondary bond market in Europe during the last weeks of February through March and April 2020, as the COVID-19 pandemic caused levels of  market volatility and dislocation surpassing those seen during the global financial crisis of 2007-2008. The report is based on market data as well as interviews and surveys of buy-side and sell-side market participants.

The European investment grade corporate bond market is a major source of funding for European and other international companies: there are estimated to be over 7,000 bonds in issue with a value equivalent to €5.65 trillion1.

As the scale of the COVID-19 pandemic became clearer towards the end of February, and as countries began to go into lockdown, predominantly passive funds sold bonds as they reassessed the risk of company downgrades and anticipated fund outflows. The sell-off gained momentum in March as market participants moved to working from home or from disaster recovery sites, creating further technical challenges and exacerbating reduced liquidity and market efficiency. Over this period bid-offer spreads, a measure of underlying market volatility, widened considerably. While bid-offer spreads have narrowed since the height of the crisis they are still not at pre-crisis levels.

Market liquidity, the ability to buy and sell bonds, became severely impaired in mid March, and by 18 March, considered to be the lowest point of the ‘liquidity crisis’ some market participants report that the market had become dysfunctional. The ECB announcement of the €750 billion Pandemic Emergency Purchase Programme (PEPP) on 18 March was critical in ensuring that the European bond markets continued to function, restoring confidence in secondary markets and setting the scene for record-breaking issuance in the investment grade primary market over the following weeks.

Among its findings, the report indicates that during the peak of the crisis, participants resorted to voice trading when the market became too volatile and too illiquid for dealers to risk providing pricing across electronic platforms. While many banks did continue providing liquidity and market-making via voice or messaging, overall dealer capacity appears to have shrunk at a time when it was needed most. Large trading volumes were however recorded through electronic platforms, using different trading protocols, for example processed trading where a price is agreed on the phone or messaging and then ‘consummated’ on a system.

There was a sizeable but temporary increase in settlement fails during the height of the crisis. This is largely attributed to the operational challenges of the relevant teams transitioning to remote-working at a time when overall trading volumes were significantly above average. This increase in structural settlement fails has accentuated concerns in the market about the EU’s CSDR mandatory buy-in provisions, due to come into force in early 2021, and raises questions as to how this would have impacted the market had it been in place during the COVID-19 turbulence.

Martin Scheck, ICMA Chief Executive commented: ‘This crisis provides a clear reminder that despite increasing electronification of trading over the last few years, the role of  market-makers in creating liquidity remains at the core of the secondary markets. Reducing the ability of market-makers to provide this service will inevitably impact market liquidity and efficiency, especially in times of market stress.”

Download 'The European investment grade corporate bond secondary market & the COVID-19 crisis'

Listen to Andy Hill's Podcast on the report.

1. Based on publicly listed bonds issued by financial and non-financial entities incorporated in the EEA (including Switzerland), denominated in an EEA currency (including Swiss Francs), carrying a minimum investment grade rating from at least one of the three main rating agencies.



Message from Martin Scheck, ICMA’s Chief Executive

ICMA's Chief Executive, Martin Scheck, talks about COVID-19 and its effect on capital markets, and how ICMA is adapting its approach to supporting its global membership.

Listen to the message




ESMA confirms ICMA proposals for reporting of central bank repos under MiFIR

21 May 2020 In response to an ICMA query, ESMA has provided some clarifications on the reporting of repos transacted with EU central banks. Under SFTR, SFTs transacted with one of the 27 EU central banks that are part of the European System of Central Banks (ESCB) are exempted from the reporting obligation. However, these trades have in turn been included in the scope of MiFIR transaction reporting. This requirement will apply at the same time as SFTR goes live. However, there has been only limited additional guidance as to how repos and other SFTs can be reported under MiFIR, considering that the reporting framework has not been designed to cater for SFTs and their specific characteristics. Following extensive discussions, ICMA’s SFTR Task Force developed a proposal to report repo trades under MiFIR, consisting of two sample reports and an explanatory note. Both documents were submitted to ESMA in November 2019 for review and validation.

The ESMA response received on 8 May 2020 confirms all the main aspects of the ICMA proposals and also addresses two open questions that we submitted alongside those proposals. In particular:
  • The basic principle proposed by ICMA was confirmed. Under MiFIR, it is the collateral that should be reported, not the repo itself.
  • Only the purchase leg needs reporting.
  • Repos with multiple collateral securities should be reported as a Complex Trade, a concept introduced for certain derivatives. This means breaking up such a repo into components.
  • In cases where the collateral allocation is only available after the T+1 reporting deadline, ESMA leaves it to National Competent Authorities to assess whether the delay is justified, taking into account that the reported trade is an SFT.
  • Pledge-based repos (which are really secured loans, not repos) must be reported, because the rules on what to report are set by SFTR, not MiFIR, and ESMA has interpreted SFTR as including pledge-based repos.



ICMA publishes briefing note on CSDR Settlement Discipline - cash compensation in the case of bond markets

21 May 2020 ICMA has published a briefing note outlining the identified deficiencies in the CSDR provisions for cash compensation in the case of bond markets, as well highlighting some of the potential market solutions under discussion, including the not insignificant challenges associated with these. The note was produced in conjunction with the ICMA’s dedicated CSDR Cash Compensation Workstream, part of ICMA’s CSDR-SD Working Group.



ICMA submits letter to European Commission and ESMA outlining industry concerns on timely implementation of CSDR mandatory buy-in provisions

20 May 2020 ICMA has submitted a letter to the European Commission and ESMA outlining the industry concerns related to timely implementation of the CSDR mandatory buy-in provisions. The letter highlights the ongoing lack of regulatory clarification required by the industry to facilitate successful implementation, as well as asking the authorities to review the design and application of the buy-in framework in light of recent market events.



ICMA responds to European Commission MiFID II/R review consultation paper

15 May 2020 ICMA has today responded to the European Commission's MiFID II/R review consultation paper.

Primary markets can be found on the following pages:
Investor protection aspects, including product governance and inducements – p. 36-56

Secondary bond markets and fintech can be found on the following pages:
MiFID II Review – general questions in relation to bond markets – p. 8 – 12
Consolidated tape for EU bond markets – p. 14 – 27
Post-trade transparency in bond markets – p. 35
Best execution in bond markets – p. 57 – 61
Research unbundling for bond markets – p. 61 – 69
Multilateral systems in bond markets – p. 80 – 81
Non-discriminatory access in relation to bond markets – p. 84 – 86
Digitalisation and new technologies in relation to bond markets  – p. 87 - 90



ICMA publishes update memorandum on the EU’s sustainability disclosure regime

30 April 2020 New and amended EU legislation is introducing significant sustainability and ESG related disclosure requirements that will impact all participants in the European capital markets. This is arguably leading to what we are referring to as an “EU sustainability disclosure regime”. Our publication seeks to provide the market with an initial comprehensive and practical overview of these developments. Also listen to our podcast on this important topic.

Download the memorandum.



ICMA publishes an in-depth report on consolidated tape for greater post-trade transparency in the EU bond markets

29 April 2020 ICMA has today published a report into considerations surrounding the establishment of an EU consolidated tape (CT) for bond markets. This report was produced in response to a request from the European Commission’s DG-FISMA for a bespoke study assessing the feasibility of implementing a consolidated tape for EU post-trade raw bond data.

Greater transparency in bond markets and other “non-equity” asset classes was one of the key objectives of MiFID II and MiFIR, however, in bond markets, this has yet to be fully achieved. A key reason for this is the lack of a central database, which aggregates the various raw post-trade data sources into a single view, also referred to as a ‘consolidated tape’. Instead, raw post-trade bond data (date, time of execution, reported date & time [taking into account current publication and deferral obligations under MiFID II], ISIN, price, venue, volume, amendment or cancel) is currently fragmented across the different Approved Publication Arrangements (APAs) with inconsistent presentation formats and differing modes of machine readability. Inadequate data quality poses further challenges to the data that is currently available. Lastly, there is also a noticeable unlevel playing field with respect to access to raw post-trade bond data.

Commenting on the benefits to the market of a single reliable source of post-trade data, Martin Scheck, ICMA Chief Executive said: “The goal of the bond market consolidated tape is to improve post-trade transparency, assist decision-making and provide market insights to end-investors, large or small. We believe that adoption of the appropriate structure would benefit the whole market, by providing a centralised, high quality, affordable, trustworthy data source, offering a comprehensive market view.“

The post-trade CT report, the culmination of work by a taskforce of thirty-six ICMA member firms from the buy-side, sell-side, trading venues and data providers, recommends several key elements such as: the assessment of potential governance models likely to become a successful consolidated tape provider (CTP) ‘going concern’; creation of a CTP revenue sharing scheme for APAs and trading venues based on quality of cleansed aggregated data; a balanced tiered pricing model based on usage (or proportion of usage); relevant necessary changes to level one of MiFID II to alter the CTP obligation to obtain bond post-trade data, to an obligation for venues, APAs and eligible investment firm obligation to provide it to the CTP; and finally the borrowing of a number of fundamentals from Trade Reporting and Compliance Engine (TRACE), a consolidated tape for the US fixed income markets.

Download EU Consolidated Tape for Bond Markets - Final report for the European Commission.



ICMA ERCC releases updated version of its SFTR recommendations

22 April 2020 The ICMA European Repo and Collateral Council (ERCC) has today published an updated version of the ICMA Recommendations for Reporting under SFTR. The ICMA guide was initially published on 24 February and aims to help members interpret the regulatory reporting framework specified by ESMA and sets out complementary best practice recommendations to provide additional clarity and address ambiguities in the official guidance. As compared to the initial publication, the version published today includes relevant updates, including to reflect the recently granted 3-month delay to the first phase of the SFTR go-live as well as the forbearance on backloading. The updated version also covers a number of new questions, as well as additions and revisions to existing recommendations covered in the guide. For ease of comparison, ICMA published, alongside the new guide, a blackline version which shows all the changes that have been made since the initial publication. Going forward, the document will continue to evolve to reflect ongoing discussions in the ERCC SFTR Task Force as well as any additional guidance received from ESMA and/or the NCAs. Further updates will be made available on the ICMA website.



ICMA publishes 38th survey of the European repo market and report on market conditions during the COVID-19 pandemic

21 April 2020 ICMA today published the 38th in its series of semi-annual surveys of the repo market in Europe, together with a report on market performance during the COVID-19 pandemic.

The survey measured outstandings in the European repo market on 11 December 2019 based on the returns of 58 financial institutions, recording the baseline figure for the size of the repo market as a record EUR 8,310.3 billion, compared with the total for June 2019, which was EUR 7,761.4 billion, an increase of 7.1% and a year on year rise of 5.9% (although the growth rates were smaller when adjusted for changes in the survey sample).

The survey records continued growth in the European repo market, together with the European Repo and Collateral Council's (ERCC) report on how the market coped with year-end pressures, suggesting that the market was continuing to adapt to the complex regulatory demands imposed over recent years and in particular the demand for collateral transformation to provide high quality liquid assets (HQLA) to meet regulatory ratios. But even pre COVID-19, the continuing reduction in the share of German government securities (which now account for less collateral than Italian and UK government securities) may be evidence of increasing collateral scarcity, some of which could reflect renewed bond purchases by the ECB.

The special COVID-19 market report reveals that while demand for repo subsequently increased significantly during the height of the crisis in February/March, dealers’ capacity to intermediate that demand was relatively constrained, limiting access to many firms that needed it.  A smaller snapshot survey at the end of March 2020 suggests that while most larger banks did increase their balances during the crisis, many smaller banks tended to reduce their repo footprint, in some cases dramatically. The sample data points to an overall increase in outstandings of about 8% from the December 2019 survey, but a median adjustment of -4% across the sample.

Recent market disruption has also thrown out a number of technical and operational challenges, including collateral bottlenecks, increased settlement fails, and challenges managing intraday liquidity and collateral. It also highlights the dependence of market functioning on central bank intervention in times of stress.

Gareth Allen, Chair of the ERCC said: "In the exceptionally stressed conditions experienced in February and March this year the repo market continued to perform relatively well, while showing some signs of strain in the face of greatly increased client demand. The pre COVID-19 survey results will provide the benchmark against which the next survey, in June, can be used to measure the persistent impact of the pandemic on the market. We recommend continued vigilance in monitoring the market’s performance."


Download the 38th ICMA Survey of the
European repo market

Download the ICMA Report on the European repo market and the COVID-19 crisis



ICMA AMIC publishes its response to the EC consultation on the EU Ecolabel for financial products

17 April 2020 ICMA's Asset Management and Investors Council has today published its response to the EC consultation on the EU Ecolabel for financial products. While AMIC supports the idea of an EU quality stamp for ESG retail investments funds it also warns that some important changes are required to ensure the success of this new label. AMIC recommends in particular broadening the list of eligible assets for diversification purposes but also to further support companies transitioning to a lower-carbon business model.



ICMA publishes 2020 legal opinions on global master repo agreement

16 April 2020 The International Capital Market Association (ICMA) has today published the 2020 ICMA GMRA legal opinions which support the Global Master Repurchase Agreement (GMRA), the standard agreement for international repo transactions, including a new opinion for Argentina.

Please see ICMA circular No. 2 of April 16, 2020 for further information (ICMA members only).



ICMA ERCC launches webinars on key topics that have impacted the repo market

8 April 2020 The ERCC has today launched webinars to bring members and the wider market up-to-date on key topics that have impacted the repo market.

The webinars include presentations on the two important regulatory initiatives that are set to reshape the market, the EU SFT Regulation and CSDR mandatory buy-ins; a legal update highlighting developments in relation to repo documentation and the ICMA GMRA legal opinions; the results of the latest European repo survey; and a discussion on ICMA’s ongoing collaboration with ISDA to extend the Common Domain Model (CDM) to SFTs, building a standardised digital representation of repos.

View webinar recordings and presentations.



ICMA publishes Bond Market Post-Trade Transparency Directory

7 April 2020 ICMA has compiled an overview of current post-trading reporting obligations across multiple jurisdictions from Europe, the Americas and Asia-Pacific. The purpose of the mapping is to provide a consolidated view to compare both regulatory rules and best practice guidance on bond post-trade transparency regimes, as well as details on reporting fields and exceptions.

This is a non-exhaustive overview and is intended to be a living document with periodic reviews.

Download the Bond Market Post-Trade Transparency Directory.



ICMA publishes Repo Trading Technology Directory

2 April 2020 In light of increasing electronification of repo markets, ICMA has conducted a mapping exercise of electronic repo trading platforms. The directory is intended to help market participants understand what execution venues are available for repo trading (D2D or D2C, for instance), product scope, as well as differences in trading protocols, clearing and collateral configurations. The directory also provides information on the venues’ regulatory status, market identifier codes (MIC) and additional services on offer such as regulatory reporting under SFTR.

This initiative complements ICMA’s mappings of Primary markets technology, Electronic Trading Platforms as well as FinTech solutions for repo and cash bond operations.

The mapping directory does not constitute an exhaustive list of providers in the market. Relevant providers that are not yet covered by the mapping directory and wish to join are very welcome to do so. Please contact us for further details.

Download the Repo Trading Technology Directory.



New ICMA members in March 2020

The following firms were admitted to ICMA membership in March 2020.
  • BCS Prime Brokerage Limited, London
  • Cantor Fitzgerald Europe, London
  • China Securities Depository and Clearing Corporation Limited (CSDC), Beijing
  • Etrading Software Limited, London
  • Ferrovie dello Stato Italiane S.p.A., Rome
  • Iberdrola S.A., Bilbao
  • Pirum Systems Limited, London
  • Poste Italiane S.p.A., Rome
  • Reed Smith LLP, London
  • Reyl & Cie SA, Geneva
  • Tradeweb Europe Limited, London
Bringing the total number of ICMA members to 595 members in 62 countries. Click here to view the full list of ICMA members.



Green and Social Bond Principles with ICMA underline relevance of Social Bonds in addressing COVID-19 crisis and provide additional guidance

31 March 2020 The Executive Committee of the Green Bond Principles, the Social Bond Principles and the Sustainability Bond Guidelines (the Principles), supported by the International Capital Market Association (ICMA), underline that existing guidance for Social and Sustainability Bonds is immediately applicable to efforts addressing the COVID-19 crisis. Additional advice for issuers in the form of new Q&A and case studies has been provided.

Social Bonds finance projects that directly aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes directed towards a specified target population. Sustainability bonds finance both green and social projects. The global COVID-19 outbreak is a social issue that threatens the well-being of the world’s population, especially the elderly and those with underlying health problems. In addition, millions of people around the world are suffering, or will be suffering, from the resulting economic downturn.

Illustrative examples for eligible social projects can include COVID-19 related-healthcare and medical research and development of vaccine, investment into additional medical equipment, or manufacturing facilities to produce more health and safety equipment and hygiene supplies, and specific projects designed to alleviate unemployment generated by the crisis. These should especially target specific groups directly impacted by the virus outbreak, although they may also seek to support a wider population affected by the economic crisis.

Lars Eibeholm, Chair of the Executive Committee of the GBP SBP, Head of Treasury and Sustainability at Nordic Investment Bank, stated: “Based on market requests the Social Bond Working Group initiated the targeted Q&A. The aim is to provide additional information for issuers’ Social Bond framework on how to communicate their strategies and specific projects to alleviate the negative impact of the pandemic. Under these exceptional circumstances, it is important to maintain transparency and keep the long term targets on positive social impact.”

Martin Scheck, Chief Executive of ICMA, stated: “We believe that Social and Sustainability Bonds can provide an immediately actionable channel for the market to finance projects that directly contribute to alleviating the social and economic impact of the COVID-19 crisis. We strongly support the efforts of the GBP SBP Executive Committee to provide further guidance to the market for these operations”.

Download the Q&A for Social Bonds related to Covid-19

View the 2018 Social Bond Principles
View the Sustainability Bond Guidelines
View the 2018 Green Bond Principles



ICMA offers clarification of ESMA’s delay to the SFTR go-live

31 March 2020 ICMA has published a summary of the latest ESMA statements issued on 19 March (and updated on 26 March) and their practical implications for reporting parties. The conclusions set out in the note have been agreed with members of ICMA’s SFTR Task Force and are intended to provide additional clarity for member firms and other SFTR stakeholders. The conclusions already reflect a number of informal discussions with ESMA and some NCAs, with whom the note has been shared, even if neither ESMA nor the NCAs are in a position to officially endorse the note.



ESMA clarifies position on backloading

26 March 2020 ESMA issued an updated version of their initial statement (published on 19 March) which granted a 3-month delay to the SFTR phase 1 go-live to 13 July. Responding to requests by ICMA and others, the updated statement clarifies some aspects of the initial statement which were not clear, specifically in relation to the implications for the backloading requirement. The updated statement clarifies that ESMA’s expectation that NCAs will not enforce reporting obligations between 11 April and 12 July also covers the back-loading provisions, for banks and credit institutions (phase 1), but also for all other firms that will eventually become subject to SFTR reporting obligations in the remaining three phases. In effect, this clarification allows all firms subject to SFTR reporting to no longer consider backloading as a requirement.

ICMA welcomes this clarification and the rapid and pragmatic response by ESMA. Complementing ESMA’s statement, a number of NCAs have already or are planning to publish additional updates confirming their specific plans to align with ESMA’s guidance.  
 
Related announcements:
UK: FCA approach
NL: AFM approach



Amendments to the ICMA Primary Market Handbook published

25 March 2020 Amendments to the ICMA Primary Market Handbook have been published today. For more information, see the ICMA Primary Market Handbook - Amendments/archive page.

The associated circular to members is available here for ICMA members and ICMA Primary Market Handbook subscribers only (login details required).



ICMA Euro commercial paper (ECP) materials are made available to the wider market

23 March 2020 Following the announcement of the Bank of England’s Covid Corporate Financing Facility (CCFF) and in the interest of supporting the overall market, ICMA is making generally available to non-ICMA members the Euro commercial paper materials from the ICMA Primary Market Handbook previously available only to ICMA members. The Bank of England has confirmed to ICMA that it will accept commercial paper issued on ICMA standard templates, though ICMA anticipates some parties may wish to use the ICMA materials as a basis from which to develop narrower use documentation.
 
The relevant materials are:
  1. Appendix A7, Part I - Dealer Agreement;
  2. Appendix A7, Part II - Information Memorandum;
  3. Appendix A7, Part III - Global Note;
  4. MiFID II Product Governance and Euro Commercial Paper;
  5. Chapter 12 - ECP Recommendations;
  6. Chapter 2 - MTN Recommendations (cross-references from Chapter 12).
ICMA is considering the IBOR provisions in the standard form ICMA ECP Global Note.

Any related queries should be directed to LegalHelpdesk@icmagroup.org.



COVID-19 – ESMA postpones reporting obligations under SFTR

19 March 2020 In response to concerns raised by ICMA and ISLA in a letter on 16 March, ESMA has issued a public statement on Actions to mitigate the impact of COVID-19 on the EU financial markets – postponement of the reporting obligations related to securities financing transactions under the Securities Financing Transactions Regulation and under Markets in Financial Instruments Regulation.

The statement effectively postpones the first phase of the SFTR reporting go-live applicable to banks and investment firms by 3 months, from 11 April to 13 July. More specifically, ESMA clarifies:     
 
“ESMA therefore expects competent authorities not to prioritise their supervisory actions towards counterparties, entities responsible for reporting and investment firms in respect of SFT reporting obligations, under SFTR and under MIFIR, as of 13 April 2020 and until 13 July 2020, including regarding to SFTs concluded in that period of time, and to generally apply their risk-based approach in the exercise of supervisory powers in their day-to-day enforcement of applicable legislation in this area in a proportionate manner.
 
Further, ESMA does not consider it necessary to register any TR ahead of 13 April 2020. This will give TRs more time to cope with the emergency and be ready to support the new reporting regime at a later point in time. ESMA is also not available to record the details of SFTs. As a result, counterparties, entities responsible for reporting and report submitting entities will be unable to report by the reporting start date.”

 
While this move is broadly welcome, ICMA continues to monitor closely any further developments in relation to the COVID-19 pandemic and will liaise with ESMA as regards further action, as required. This work is done in close consultation with member firms represented in the European Repo and Collateral Council's SFTR Task Force, which brings together representatives from around 150 firms to coordinate the industry’s SFTR implementation work in relation to repo.



ICMA AMIC responds to EC consultation on improving resilience of financial services against cyberattacks

19 March 2020 Based on the ESA’s opinion issued in April 2019, the EC is considering introducing changes to the sectorial legislation (e.g. UCITS, AIFMD) to enhance cyber-resilience. In our response we argue that the regulatory framework already allows us to address cyber-risk in the asset management industry.

This has given supervisors the possibility to thoroughly test the cyber-resilience of asset managers. There is therefore no legal impediment and no need to reopen sectorial rules to enhance cyber-resilience in the asset managment sector.



ICMA responds to the European Commission's consultation on an EU framework for markets in crypto-assets

18 March 2020 ICMA has responded to the European Commission's consultation on an EU framework for markets in crypto-assets, solely in relation to selected aspects of EU legislation applying to “security tokens”, defined by the European Commission as “crypto-assets issued on a DLT and that qualify as transferable securities or other types of MiFID financial instruments”.



ICMA together with ISLA writes to ESMA to request a delay to the implementation of reporting under SFTR

16 March 2020 Amidst the escalating COVID-19 pandemic, ICMA and ISLA have sent a joint letter to ESMA to ask for a delay to the SFTR reporting go-live date, due on 11 April 2020. In support of this request, the letter includes concrete examples of the significant challenges that the COVID-19 pandemic and the related measures pose to members’ SFTR implementation projects.



ICMA AMIC publishes its first Review of 2020

10 March 2020 ICMA’s Asset Management and Investors Council (AMIC) publishes its first Review of 2020, featuring articles on Sustainable Finance, Fund Liquidity and Primary Markets. This bi-annual publication highlights the role of the buy-side community within ICMA, reminds readers of AMIC’s objectives and priorities and outlines the activities of its working groups, alongside some enduring AMIC topics.










European Commission’s TEG on Sustainable Finance releases Usability guide for the EU Green Bond Standard and the Final report on the EU Taxonomy

9 March 2020 The European Commission’s Technical Expert Group on Sustainable Finance of which ICMA is a member has released today the Usability guide for the EU Green Bond Standard and the Final report on the EU taxonomy. Both reports are designed to provide essential additional guidance to market participants on the use of the proposed future standard and on the EU’s classification of green economic activities. Martin Scheck, CEO of ICMA, said: “The EU GBS and the Taxonomy are key developments in Europe’s sustainable finance landscape. We are actively engaged in the Technical Expert Group’s efforts to advise on how they can be successfully implemented within the Commission’s ambitious Action Plan on Sustainable Finance and alongside existing best practice in sustainable financial markets”.



ICMA publishes FAQs on CSDR mandatory buy-ins and Securities Financing Transactions

5 March 2020 ICMA has today published FAQs on CSDR mandatory buy-ins and Securities Financing Transactions. The FAQs are intended to outline considerations and, where possible, to provide clarity with respect to the application of CSDR buy-ins in the case of repos and other SFTs. The FAQs will be updated in light of new guidance from ESMA and agreed market best practice.



Time to act - ICMA issues study on the state of the European investment grade corporate bond secondary market

4 March 2020 ICMA has today issued the third in its series of studies into the state and evolution of the European investment grade corporate bond secondary market. Based on quantitative market data, stakeholders surveys, as well as in interviews with market participants, the study looks at the current state of market liquidity; the evolution of market structure; and participants’ expectations for future developments in the market. It compares market conditions and developments since the previous 2016 study, as well as the 2017 reports of the European Commission’s Expert Group on Corporate Bond Markets.

The study concludes that secondary market liquidity conditions remain challenged, and have deteriorated since 2016. It also examines the key trends and developments in market structure over the past three years, including evolving market behaviour and the adoption of new trading protocols, as well as the impacts of regulation and monetary policy. Looking forward, it identifies potential opportunities through new technologies and the use of data, as well as further challenges to liquidity, not least as a result of higher capital charges for market makers, as a result of the Fundamental Review of the Trading Book (FRTB), and the implementation of the Central Securities Depositories Regulation (CSDR) mandatory buy-in regime. The report encourages policy makers, regulators, and stakeholders to build on the work undertaken by the European Commission’s Expert Group in order to prevent further declines in market liquidity and to ensure the continued development of Europe’s corporate bond market.

Download 'Time to act - ICMAs 3rd study into the state and evolution of the European investment grade corporate bond secondary market'.



ICMA publishes Quick Guide to the transition to risk-free rates in the bond market

27 February 2020 The International Capital Market Association (ICMA) has today published its Quick Guide to the transition to risk-free rates in the bond market, which is intended to highlight progress on the key issues on which ICMA is focused in this area and provide links to relevant resources on the topic.
A short podcast is also available.

The transition from the long established IBORs (including LIBOR) to alternative near risk-free reference rates (RFRs) is a major challenge for global financial markets, with the deadline for the potential demise of LIBOR set for the end of 2021. ICMA, representing the international bond market, is involved with various official sector sponsored working groups relating to this transition. The Quick Guide summarises the position as of today's date and will be updated at intervals as other developments arise.






ICMA’s ERCC publishes guide to reporting under the SFTR

24 February 2020 ICMA’s European Repo and Collateral Council (ERCC) has today published its guide to reporting repo transactions under the EU Securities Financing Transactions Regulation (SFTR). The new reporting regime introduced by SFTR will start its phased implementation in April 2020 and will require detailed reporting by EU-incorporated or located entities of all securities financing transactions (including repo and reverse repo) to authorised trade repositories.
 
The regulation introduces granular daily reporting requirements for repos and other types of SFTs. Overall, SFTR defines 155 reporting fields (118 applicable to repo) and requires most of those fields to be matched between the two sides of the report. In addition, reporting firms will have to report any modifications, terminations and corrections throughout the life cycle of a trade and on a daily basis report on collateral market values, collateral reuse and margins.
 
The ICMA guide aims to help members interpret the regulatory reporting framework specified by ESMA and sets out complementary best practice recommendations to provide additional clarity and address ambiguities in the official guidance. It is supplemented by a suite of sample reports and an overview of repo life-cycle event reporting, which have both been published today.
 
ICMA has played a leading role in guiding the industry response to the challenges of SFTR reporting, through the ERCC’s dedicated SFTR Task Force which represents over 150 firms covering the whole spectrum of the market. The group includes reporting firms from both buy-side and sell-side but also market infrastructures and third-party service providers offering solutions to help reporting firms comply with SFTR. The guide published today is based on feedback from members of the SFTR Task Force and defines a market consensus on over 70 issues.

This is not a static document and will continue to evolve as we move closer to the reporting go-live date in April and beyond. Please make sure to download the latest version from our SFTR webpage when consulting the guide.

Complementing the work on best practices, ICMA actively provides support and technical training on the requirements of SFTR, running numerous workshops and webinars, operating a well-used ‘help line’ for members and participating in industry events.
 
Martin Scheck, ICMA’s Chief Executive commented: ‘Intensive cross industry collaboration through the task force coordinated by ICMA reflects the scale of the challenge that SFTR poses to repo and other SFT markets. It has succeeded in creating a clear and authoritative ‘how to’ guide for anyone obliged to report under SFTR and will support the objective of the regulation by facilitating good data quality from the market to enhance transparency’.

Downloads:



ICMA publishes a Compendium of international policy initiatives and best market practice for sustainable finance

20 February 2020 As the international market for sustainable finance continues to grow rapidly, supported by initiatives from governments, regulators, exchanges, financial industry associations and market participants themselves, ICMA has published a Compendium intended to provide stakeholders with an easy reference point to the numerous national and international developments in the field.

ICMA has contributed actively to the policy and regulatory dialogue at the national and international level, including the G20 and continues to do so notably as a member of the European Commission’s Technical Expert Group on Sustainable Finance. Through its work in support of the Green Bond Principles and Social Bond Principles, ICMA has been a key actor in the mainstreaming of the green, social and sustainability bond market.

The Compendium is the first publication of ICMA’s Sustainable Finance Committee set up in September 2019. This Committee brings together various ICMA committees, including its buy-side arm, corporate issuer forum, legal and documentation committee as well as the Executive Committee of the Green Bond Principles and the Social Bond Principles, and aims to address cross-cutting sustainable finance developments.

The publication will be regularly updated. For more information about ICMA’s sustainability work please see our website.



Results of the 2020 ICMA ERCC elections

We are pleased to announce the results of the 2020 ICMA ERCC elections. The 19 individuals that were elected to the new ERCC Committee are listed below. The term of office of the new Committee will be approximately one year starting immediately and ending on the day that the results of the 2021 ERCC elections are announced.

ICMA ERCC Committee 2020-2021

Charlie Badran
AXA Investment Managers Ltd

Nick Dent
Barclays Capital Securities Limited

Emma Cooper
BlackRock Investment Management (UK) Limited

Eugene McGrory
BNP Paribas

Peter Fejfer Nielsen
Citigroup Global Markets Limited

Jean-Robert Wilkin
Clearstream Banking

Andreas Biewald
Commerzbank Aktiengesellschaft

Romain Dumas
Credit Suisse Securities (Europe) Limited

Marije Verhelst
Euroclear Bank S.A./N.V.

Jean-Michel Meyer
HSBC Bank plc

Lav Lukic
J. P. Morgan Securities plc

Antony Baldwin
LCH Limited

Daniel Bremer
Merrill Lynch International (trading as Bank of America Merrill Lynch)

Amandine Triadu
Mizuho International plc

Paul Van De Moosdijk
PGGM Vermogensbeheer B.V.

Sylvain Bojic
Société Générale S.A.

Richard Hochreutiner
Swiss Reinsurance Company Ltd

Gareth Allen
UBS AG

Harald Bänsch
UniCredit Bank AG



New ICMA members in February 2020

The following firms were admitted to ICMA membership in February 2020.
  • Amherst Pierpont Securities LLC, New York
  • Banque Centrale de Compensation (trading as LCH SA), Paris
  • Ghana Stock Exchange, Accra
  • Matheson, Dublin
  • Nomura Financial Products Europe GmbH, Frankfurt
  • Norinchukin Bank Europe N.V., Amsterdam
  • OTP Bank Plc., Budapest
Bringing the total number of ICMA members to 588 members in 63 countries. Click here to view the full list of ICMA members.



ICMA AMIC and the IA write to European Commission expressing concerns about the potential bond market impacts of the CSDR mandatory buy-in provisions

30 January 2020 ICMA's AMIC and the IA have written to Executive Vice-President Dombrovskis of the European Commission, on behalf of their members, expressing concerns about the potential bond market impacts of the CSDR mandatory buy-in provisions (due to come into force in early 2021). The regulatory initiative is widely expected to have negative implications for European bond market efficiency, liquidity, and stability, creating additional, and largely unwarranted risks for investors. Representing European and global buy-side institutions, the Asset Management and Investors Council and the Investment Association encourage the European Commission to undertake a robust market impact assessment of the mandatory buy-in provisions before attempting implementation. In the absence of such an analysis, as a minimum, the associations request a cautious, phased-in approach to minimize potential disruption to the European markets.



Green Bond Principles establishes a Working Group on sustainability/KPI-linked bonds

23 January 2020 On 14 January 2020, the Executive Committee of the Green Bond Principles, the Social Bond Principles and the Sustainability Bond Guidelines (the Principles), supported by the International Capital Market Association (ICMA), decided to establish a working group on emerging sustainability/KPI-linked bond products.

The remit of the Working Group will be to (i) take stock of recent and ongoing developments in the market for sustainability/KPI-linked bond products (ii) establish their main characteristics including by using what has been developed in the Sustainability-linked Loan market; (iii) examine any concerns; and (iv) consider and potentially propose market guidance. The Working Group’s Terms of Reference are available on ICMA’s website.

Download the press release




ICMA AMIC and EFAMA update their report on Managing Fund Liquidity Risk in Europe

22 January 2020 In 2019, AMIC and EFAMA decided to update their 2016 report “Managing Fund Liquidity Risk in Europe” following important policy and regulatory developments at EU and international levels. The purpose of this updated report is to outline the practical liquidity risk management processes which fund management companies put in place when setting up a fund and implement throughout the life of the fund. Also, the report describes the existing European and international regulatory frameworks in the area of fund liquidity risk management.

Download the press release.
Download the report.




ICMA AMIC publishes discussion paper - review of the European Long-Term Investment Fund (ELTIF) Regulation

17 January 2020 In this discussion paper, the AMIC proposes concrete regulatory changes to facilitate the take-up of ELTIFs and significantly boost their contribution towards the financing of much needed longer-term investment.



The European repo market at 2019 year-end - an ICMA European Repo and Collateral Council Briefing Note

14 January 2020 The ICMA European Repo Market and Collateral Council has published a briefing note on events in the European repo market over year end 2019. The report focuses on the euro, sterling, and USD markets, and given the significant attention on the USD repo market since September 2019 and in the build-up to year-end, this is the starting point for the 2019 review. The analysis is based on market data and accounts provided by market participants (both sell-side and buy-side).

This is the fourth in the series of annual reports which began with an analysis of the stresses and dislocations witnessed in the euro denominated market at 2016 year-end, which were unprecedented, and caught market participants and authorities off guard. In many respects, the extremities of 2016 were the culmination of a perfect storm of factors, including market positioning, dislocations in the EUR/USD FX basis, an excess of euro cash in the banking system, and a reduction in the intermediation capacity of dealers due to regulatory reporting requirements.

While subsequent year-ends have not been as stretched, they have nonetheless continued to raise concerns among both liquidity providers and market users. What the 2017 and 2018 year-end reports reveal is a change in behaviour, both on the sell-side and buy-side. In the case of dealers, we observe more balance sheet being put to use over the turn (particularly by the non-GSIB community), while asset managers have stepped up preparedness, locking in financing needs early, negotiating balance sheet allocation from their dealers well in advance, or turning to alternative money market instruments to manage their liquidity. This has not, however, prevented significant price moves in both general collateral and specific issues.

In brief, compared to previous year-ends, 2019 was relatively uneventful. As one market participant commented, it was possibly the most subdued year-end of the decade. But the reasons for this are in themselves worthy of analysis and further discussion.

The European repo market at 2019 year-end - an ICMA ERCC briefing note

For more information about the European repo market and the repo product please see FAQS on repo.



ICMA responds to ESAs’ Joint Consultation Paper concerning amendments to the PRIIPs KID

13 January 2020 ICMA’s Asset Management and Investors Council (AMIC) and ICMA's primary market constituency have submitted responses to the ESAs’ 16 October 2019 Joint Consultation Paper concerning amendments to the PRIIPs KID.

View the AMIC response.
View the primary market response.



New ICMA members in January 2020

The following firms were admitted to ICMA membership in January 2020.
  • Bank of Cyprus Public Company Limited, Nicosia
  • Development Bank of Japan Inc., Tokyo
  • Development Bank of Southern Africa (DBSA), Midrand
  • european primary placement facility (eppf) S.A., Luxembourg
  • London Stock Exchange Plc, London
  • National Bank of Ukraine, Kiev
  • Nishimura & Asahi, Tokyo
  • South African Reserve Bank, Pretoria
Bringing the total number of ICMA members to 588 members in 63 countries. Click here to view the full list of ICMA members.



ICMA ERCC responds to the European Commission’s public consultation on Implementing the Final Basel III Reforms in the EU

2 January 2020 The ERCC’s response focuses on the questions in Section 2 which relate specifically to Securities Financing Transactions (SFTs). In particular, the ERCC addresses a number of issues related to the Basel provisions for minimum haircut floors for SFTs, drawing on the work previously undertaken for the 2018 GFMA/ICMA repo market report on the potential impacts for securities lending. The response also covers the treatment of counterparty credit risk for unrated entities and the lack of maturity adjustments in the corporate exposure provisions for the standardised approach.

View the response.
European bond markets still facing challenges in 2nd year of MIFD II/R implementation

20 December 2019 The International Capital Market Association (ICMA) has today published a new report on the impact and challenges of MiFID II/R for the international bond markets two years after the regulatory regime took effect.

The report is intended to provide an overview of the second year of MiFID II/R, drawing on discussions and feedback from ICMA’s diverse sell-side and buy-side members and trading venues active in the European bond market, covering primary market issuance, secondary market trading, and research unbundling.

Confirming the findings of the one-year report published in December 2018, the new report indicates that, while the implementation of MiFID II and MiFIR has not significantly impacted liquidity in the European bond markets, it has not fully achieved its objectives and challenges remain.

The main conclusions are that:
  • In primary markets, unintended consequences of the product governance and PRIIPS regimes continue to adversely impact retail investors.
  • In secondary markets, electronic trading has further increased in 2019, and price discovery has improved slightly, but post-trade transparency in secondary markets does not seem to have improved compared to 2018.
  • Research rules have been implemented differently, both within Europe and globally, and are being reviewed by regulators.

Download the report



ICMA publishes briefing note on the political agreement on the EU taxonomy

19 December 2019 The European Council and the European Parliament reached a political agreement on the Taxonomy Regulation on 18 December 2019. The Taxonomy Regulation will introduce a complex classification system of sustainable activities based on contributions to environmental objectives and technical criteria, as well as wider social and sustainability factors. It also recognises transition and enabling activities. The Taxonomy Regulation will not only apply to sustainable financial products, but also stipulates mandatory disclaimers for mainstream fund and pension products that are not using the Taxonomy as well as reporting requirements for large firms already subject to the Non-Financial Reporting Directive.

ICMA, a member of the Commission’s Technical Expert Group (TEG) on Sustainable Finance, has produced a briefing note summarising the main provisions of the Taxonomy Regulation, including the proposed classification framework, which will become a necessary reference for future sustainable financial products when they are marketed or when they are being defined by Member States or the European Union.
 
Download the briefing note.



ICMA responds to the European Commission’s consultation on the EU Benchmarks Regulation

19 December 2019 ICMA has responded to the European Commission’s consultation on the EU Benchmarks Regulation.

View the response.

More on benchmark reform and transition to risk-free rates.



ICMA publishes Master Regulatory Reporting Agreement

19 December 2019 ICMA has jointly published the Master Regulatory Reporting Agreement (MRRA), in association with AFME, FIA, ISDA and ISLA.

The MRRA provides users with a template agreement for documenting regulatory reporting arrangements in relation to derivatives and securities financing transactions entered into under industry standard documentation, such as the Global Master Repurchase Agreement (GMRA).

EMIR (as amended by EMIR Refit) and SFTR impose delegated and mandatory reporting obligations on parties entering into derivative and SFT contracts, respectively. The MRRA has been structured on a modular basis, featuring various schedules, a Derivatives Annex (in relation to EMIR) and a Securities Financing Transactions Annex (in relation to SFTR). Parties can assemble an agreement which is appropriate for their trading relationships and reflects their regulatory obligations. An explanatory memorandum* has been published alongside the agreement.

Download the MRRA*

ICMA has been at the forefront of efforts to understand the operational impact of the SFTR and is working on detailed best practice recommendations for SFTR reporting which will be published in early 2020, following the release of ESMA’s final Guidelines. More information is available on ICMA's website.

*You will need your user name and password to access these documents. If you are a member of the SFTR Task Force or ICMA and are having difficulties accessing this content please contact membership@icmagroup.org.

View the press release.




ICMA publishes Distributed Ledger Technology (DLT) Regulatory Directory and Brief

18 December 2019 There have been a growing number of use cases of Distributed ledger technology (DLT) in the international bond markets over the last three years. While the majority of transactions have been of experimental nature, legal and regulatory uncertainty around the treatment of DLT appears to be one of the key challenges to its broader adoption. There is a consensus that regulation is generally designed to be technology neutral, however, regulators and legislators have adopted different approaches to provide greater clarity and accommodate the use of DLT in the financial sector.

The directory seeks to provide a non-exhaustive overview of recent DLT regulatory guidance, legislative initiatives, as well as related strategy papers and publications in selected jurisdictions across Europe, North America, and Asia-Pacific. Its aim is to provide a sense of the direction of travel, anticipating future regulatory DLT guidance and legislative change, which will pave the way for broader adoption of DLT.

View the DLT mapping directory and brief.
View the press release.




Amendments to the ICMA Primary Market Handbook published

17 December 2019 Amendments to the ICMA Primary Market Handbook have been published today. For more information, see the ICMA Primary Market Handbook - Amendments/archive page.

The associated circular to members is available here for ICMA members and ICMA Primary Market Handbook subscribers only (login details required).



ICMA AMIC publishes its latest Review

Ahead of the ICMA Asset Management and Investors Council (AMIC) Conference to be held at BlackRock in London today, here is the annual AMIC Review - written by experts on current asset management industry issues and trends.

Read the AMIC Review



New market buy-in regime threatens European bond market liquidity

27 November 2019 ICMA has today published a study on the expected impact of the new mandatory buy-in regime, to be introduced in 2020 under the EU Central Securities Depositories Regulation (CSDR), on bond markets in Europe.

The results of the survey of ICMA members, representing buy-side firms, sell-side firms and repo and securities lending desks, show that the new regime will negatively impact bond market liquidity and efficiency. The new measure will force a change in the behaviour of market makers, who are the principal providers of liquidity in bond markets, affecting pricing across a broad range of fixed income asset classes as well as their willingness to show offers. This effect will be felt most at the lower end of the credit spectrum, for example corporate bonds.

View the press release
View the report



ICMA publishes updated Electronic Trading Platform (ETP) mapping directory

22 November 2019 ICMA has updated its mapping directory of Electronic Trading Platforms (ETPs). The directory now lists a total of 41 electronic execution venues, Order Management Systems (OMS) and information networks. It is intended to help market participants understand what execution and non-execution venues are available for cash bonds. Included within the directory are brief descriptions of the system/platform, products in scope, price discovery mechanisms, trading protocols, geographical coverage, regulatory status and other additional services such as regulatory reporting under MiFID II/R.
 
The market has seen small movements with two additional platforms recently listed in the directory and four deletions. Two non-execution platforms are no longer supported and two MTF execution platforms were decommissioned in 2019. This may indicate a relative saturation of competition in an increasingly difficult market for new entrant platform providers. There is evidence of increased use of the transparency data produced by MiFID II requirements for analytics and new execution models. This follows the trend for platforms to increasingly leverage and enrich market data with the objective of providing the user with further insights to gain competitive advantages.
 
The mapping directory does not constitute an exhaustive list of providers in the market. Relevant providers that are not yet covered by the mapping directory and wish to join are very welcome to do so. Please contact us for further details.

The revised ETP mapping directory is available here.



ICMA to update its buy-in rules to support implementation of EU CSDR mandatory buy-in provisions

14 November 2019 The International Capital Market Association (ICMA) will amend its Buy-in Rules to support the implementation of the EU Central Securities Depositories Regulation (CSDR) mandatory buy-in provisions. ICMA Buy-in Rules are part of its Secondary Market Rules & Recommendations which are widely relied upon by ICMA members in the international bond markets. The ICMA Rules apply automatically to trades in international securities between ICMA members.

View the press release



ICMA European repo survey sets market size at EUR 7,761 billion

13 November 2019 The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 37th semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 5 June 2019, from the returns of 55 offices of 51 financial groups, sets the baseline figure for European market size at EUR 7,761 billion, down by 1.1% on the December 2018 survey figure of EUR 7,846 billion. Year on year this is an increase of 5.6% from the June 2018 survey which set the figure for market size at EUR 7,351 billion.

View the press release
Download the 37th ICMA ERCC European Repo Market Survey



New ICMA members in October 2019

The following firms were admitted to ICMA membership in October 2019.
  • Bank GPB International S.A., Luxembourg
  • Bank of America Merrill Lynch International Designated Activity Company, Dublin
  • Bundesrepublik Deutschland Finanzagentur GmbH, Frankfurt
  • Finnvera Oyj, Kuopio
  • ICBC Wealth Management Co., Ltd., Beijing
  • Mizuho Securities Co., Ltd., Tokyo
  • Mizuho Securities USA LLC, New York
  • Mizuho Trust & Banking (Luxembourg) S.A., Luxembourg
  • UBS Asset Management (UK) Ltd., London
  • Watson Farley & Williams LLP, London
Bringing the total number of ICMA members to 584 members in 62 countries. Click here to view the full list of ICMA members.



Green Bond Principles and Social Bond Principles Executive Committee announces 2019/2020 Advisory Council composition

11 October 2019 The Green Bond Principles and Social Bond Principles Executive Committee is pleased to announce the 2019/2020 Advisory Council composition.



Conference gathers pivotal stakeholders in Tokyo for the third time to exchange views and practical expertise on how to foster and develop the market for sustainable finance instruments

Building the infrastructure for sustainable finance

Conference gathers pivotal stakeholders in the global and in particular Asian green, social, and sustainability bond markets in Tokyo for the third time to exchange views and practical expertise on how to foster and develop the market for sustainable financial instruments.


9 October 2019 The International Capital Market Association (ICMA) and the Japan Securities Dealers Association (JSDA) held their third joint conference on the “Developments in Green, Social, and Sustainability Bond Markets—Japan and Asia” at the Hotel New Otani in Tokyo.

Building on the strong interest in the previous events in Tokyo, rising awareness of sustainable investing and the rapid evolution of the market and international guidance, the conference this year attracted approximately 700 attendees.

View the press release.



ICMA launches CSDR buy-in impact study for bond markets

30 September 2019 Following its 2015 bond market impact study, ICMA is conducting a more granular study to ascertain market awareness, preparedness, concerns, and expected impacts on bond market pricing and liquidity. The new study uses three separate online surveys, targeted at:

  1. Sell-side trading desks
  2. Repo and securities lending desks
  3. Buy-side trading desks
As with the 2015 survey, the sell-side survey asks respondents to estimate their expected pricing adjustment for offer-side liquidity across a range of euro denominated bond asset classes (based on a ‘typical’ 5-year duration bond). As the 2015 study highlighted, the ability to quantify (and cost) the impacts of regulatory initiatives provides the most powerful basis for any request for recalibration.

The deadline for responses is 18 October 2019.

The results of the impact study will be published in a publicly available report (projected for late October). The objective of the report will be to provide useful market intelligence as firms finalise their preparations and develop business strategies for implementation in late 2020, to underpin ICMA’s ongoing advocacy work related to Level 3 guidance, and to inform ICMA’s review of its buy-in rules to support implementation and provide market best practice.



ICMA ERCC publishes updated memorandum outlining recommendations for repo market best practice to address transition from EONIA to €STR on 1 October 2019

27 September 2019 The ICMA ERCC has today published an updated memorandum outlining recommendations for repo market best practice to address the transition from EONIA to €STR on 1 October 2019.

View the memorandum.



ICMA publishes update to primary markets technology mapping directory

18 September 2019 The International Capital Market Association (ICMA) has published the second edition of its primary markets technology mapping directory which compares the key features and capabilities of 28 technology solutions (up from 22 in December last year) that are available to automate all or part of the process of issuing debt securities. Building on ICMA’s work in primary bond markets, the directory’s purpose is to keep ICMA members informed about what platforms and technology solutions are available in a rapidly expanding competitive marketplace.

This unique mapping exercise includes new technology solutions, as well as new features of previously included solutions. It explains at what stage of the issuance process they can be used and whether they are aimed at underwriters, investors, issuers or others and also provides information on the scope of debt instruments covered and to what issuance methods the technology solutions apply. The directory also includes emerging platforms using distributed ledger technology which have conducted live pilots.

Download the ICMA primary markets technology mapping directory.

This initiative complements ICMA’s mappings of Electronic Trading Platforms as well as FinTech solutions for repo and cash bond operations.

Whilst the mapping directory currently covers 28 technology solutions in total, it does not constitute an exhaustive list of providers in the market. Relevant providers that are not yet covered by the mapping directory and wish to join are very welcome to do so.



ICMA with the Green Bond Principles Executive Committee responds to European Commission's consultation on TEG report on EU Taxonomy

13 September 2019 ICMA with the Green Bond Principles Executive Committee has responded to the European Commission's consultation on the TEG report on EU Taxonomy.

View the response.



ICMA responds to ESMA's MiFID II/MiFIR review report on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments

5 September 2019 ICMA has responded to ESMA's MiFID II/MiFIR review report on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments.

View the response



New ICMA members in August 2019

The following firms were admitted to ICMA membership in August 2019.
  • Berlin Hyp AG, Berlin
  • Bombay Stock Exchange Brokers' Forum (BBF), Mumbai
  • Invest Banca S.p.A., Florence
  • Nomura Securities Co., Ltd., Tokyo
  • Pinsent Masons LLP, London
Bringing the total number of ICMA members to 575 members in 62 countries. Click here to view the full list of ICMA members.



ICMA ERCC responds to ESMA’s consultation on SFTR Reporting Guidelines

30 July 2019 The ICMA ERCC has submitted a detailed response to ESMA’s consultation on draft Guidelines in relation to SFTR Reporting under articles 4 and 12. The response was prepared based on feedback from the ERCC’s SFTR Task Force, which brings together more than 600 individuals from over 100 member firms, including sell-side, buy-side, market infrastructures and service providers, leading the industry’s implementation effort in relation to repo. The response form itself was submitted alongside two further documents prepared by the Task Force over the past months, a list of SFTR sample reports, as well as detailed overview table on the reporting of repo lifecycle events.



ICMA with the Green Bond Principles Executive Committee responds to Bloomberg Barclays MSCI Green Bond Index consultation

29 July 2019 ICMA with the Green Bond Principles Executive Committee has responded to Bloomberg Barclays MSCI Green Bond Index consultation.

View the response.



ICMA AMIC responds to ESMA’s consultation on possible short-term pressure from the financial sector on corporations

29 July 2019 ICMA’s Asset Management and Investors Council (AMIC) has today submitted a response to ESMA’s consultation on possible short-term pressure from the financial sector on corporations. AMIC refutes the idea that short termism is as a prevalent bias of asset managers and calls for a regulatory framework which can further foster capital allocation towards sustainable and long-term assets.



ICMA publishes briefing on the importance of integrated capital markets and CMU

ICMA briefing: The Importance of Integrated Capital Markets and CMU

29 July 2019 The International Capital Market Association’s (ICMA’s) mission is to promote resilient well-functioning international and globally coherent cross-border debt securities markets, which are essential to fund sustainable economic growth and development. There is a significant degree of consistency between this mission and the objectives of the European Commission’s Capital Markets Union (CMU) initiative. Given this, ICMA has supported CMU from the outset and continues to see significant value in the further development of the CMU concept. The element of integration inherent in this concept is a point that is integral to much of ICMA’s work, which strives to avoid unnecessary market fragmentation and disruption given that such aspects run counter to the development of deep, liquid, efficient markets.  

To feed the Commission’s own deliberation of the appropriate way in which to best build upon the significant efforts which have already gone into CMU, ICMA has prepared a short briefing paper on the importance of integrated capital markets and CMU.  This encompasses some high-level observations on the incremental complexity introduced by Brexit and the importance of making progress to fulfil the objectives of CMU in a way which allows the EU to achieve better outcomes in a highly competitive global environment. The paper also outlines why it is that ICMA considers there to be a big opportunity to fully exploit the synergies between each of the CMU, the sustainability action plan and the FinTech action plan. Finally, the annex to the paper includes some additional detailed observations regarding specific work to further fulfil CMU objectives.



ICMA Ops FinTech mapping directory: updated version released

10 July 2019 ICMA’s Ops FinTech Working Group (WG), a subgroup of the ERCC, has conducted a review of the FinTech mapping directory for repo and cash bond operations (and ancillary services). During Q2 2019 members of the WG reached out to vendor firms with a view to updating the referenced technology solutions or adding new applications.

The revised version has now grown to include over 125 solutions, up from 90 since its first launch in November 2017, spanning 10 categories.

View the updated FinTech Mapping Directory



ICMA responds to the ECB's market consultation on European Distribution of Debt Instruments (EDDI)

9 July 2019 ICMA has today responded to the ECB's market consultation on a potential Eurosystem initiative regarding a European mechanism for the issuance and initial distribution of debt securities in the European Union (EDDI).

View the response



New executive education program on green bonds and sustainable finance welcomed by EM issuers

8 July 2019 A landmark in international green bond and sustainable finance education was achieved recently with the delivery of a one-week in-depth executive education course centred on green bonds. It was led by the International Capital Market Association (ICMA) and Stockholm School of Economics (SSE) Executive Education, which co-developed the programme under an IFC initiative to promote the supply of green bonds from Emerging Market Financial Institutions.

View the press release



ICMA summarises and comments on EU TEG reports and status of EU sustainable finance plan

21 June 2019 Following the publication in March 2018 of the Action Plan on sustainable finance of the European Commission, the Technical Working Group on Sustainable Finance (TEG) was established in June 2018.  ICMA, with the support of the GBP SBP Executive Committee, was nominated on the TEG following a highly selective process. The TEG has held monthly working group and plenary meetings since its inception and its mandate has now been extended until the end of 2019.  

The TEG published on 18 June 2019 reports and guidelines relating to its 4 key deliverables:

• EU Taxonomy for sustainable activities  
• EU Green Bond Standard  
• EU climate benchmarks and benchmarks' ESG disclosures
• Guidelines on the disclosure of environmental and social information
 
ICMA has published a paper providing an overview and comments on these reports. It also provides in Annex 1, an update on the parallel EU legislative initiatives on sustainable finance that are under way reflecting the Commission's legislative proposals of May 2018.



ICMA Future Leaders podcasts added to ICMA Podcast

Welcome to the ICMA podcast! We’ll be talking to market figures and our own experts at ICMA to get their insights about what’s happening in fixed income markets and regulation and also looking at some broader themes relating to career development.

You can listen from our website or find them on your podcast provider (iTunes or Spotify at the moment) - search 'ICMA Podcast'.

In the latest in the series, ICMA Future Leaders caught up with some speakers and ICMA members at our Stockholm conference to find out what challenges they had faced over the past year in capital markets, what they were excited about for the future and if they had any career tips for young professionals starting out in their careers. And in Pride Month we have a podcast on what it’s like to be LGBT+ and working in financial markets.



GBP & SBP publish key documents – Impact Reporting Handbook, Green Project Mapping and Guidance Handbook – and announce Advisory Council, Executive Committee election result

13 June 2019 On the occasion of the 5th Annual General Meeting and Conference of the Green & Social Bond Principles held in Frankfurt today, the Executive Committee announced publications providing key guidance to complement the Principles (the Green Bond Principles, the Social Bond Principles and the Sustainability Bond Guidelines) as well as a new Advisory Council and the results of the Executive Committee elections.

View the press release



New ICMA members in June 2019

The following firms were admitted to ICMA membership in June 2019.
  • BofA Securities Europe Société Anonyme, Paris
  • ENGIE, Paris
  • ICBC International Securities Limited, Hong Kong
  • Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH, Frankfurt
  • NatWest Markets N.V., Amsterdam
Bringing the total number of ICMA members to 570 members in 62 countries. Click here to view the full list of ICMA members.



A comparative review of practices and procedures in the Russian and international primary debt capital markets - an ICMA-NFA report

A comparative review of practices and procedures in the Russian and international primary debt capital markets | Сравнительный обзор практических подходов и процедур на российском и международном первичных рынках заемного капитала - an ICMA-NFA report

5 June 2019 This bi-lingual report is focused on processes and practices in the Russian and international debt primary markets – i.e., the market in which bonds are initially offered to investors before they begin to trade freely among investors and dealers in the secondary market.

The report covers all the major aspects and mechanisms of the way bonds are issued in the international syndicated and Russian bond markets: lead manager organisational structure, appointment of lead managers in the Russian market, debt issues concept classification, overview of the debt issuance documentation and the procedures of its registrations, bookbuilding, pricing, settlements and other provisions of the bond issuance on the primary market.

Download the report



ICMA’s 3rd European IG Corporate Bond Secondary Market Study

21 May 2019 ICMA launches online buy-side and sell-side surveys as part of its 3rd European IG Corporate Bond Secondary Market Study.

Members and other market stakeholders are encouraged to participate in this important initiative. All responses will be treated anonymously and only published in aggregate.
View more details



ICMA elects new board members at Stockholm AGM

16 May 2019 Two existing board members were re-elected at the 51st ICMA AGM in Stockholm:
  • Joanna Cound, BlackRock Investment Management (UK) Limited, London
  • Roman Schmidt, Commerzbank AG, Frankfurt am Main
The following new board members were elected:
  • Amine Bel Hadj Soulami, BNP Paribas, London Branch, London
  • Alessandro Brusadelli, UniCredit S.p.A., Rome
  • Dr. Frank Engels, Union Investment Privatfonds GmbH, Frankfurt am Main
  • Kun Hu, Bank of China Limited, London Branch, London
  • Michel Semaan, Crédit Agricole Corporate and Investment Bank, London
  • Janet Wilkinson, RBC Europe Limited, London
The ICMA board consists of 22 members, 21 of which are normally elected by the general meeting and one of which, the Chief Executive, is appointed by the board. The term of office of the 21 elected board members is three years.

View the full list of ICMA board members.



ICMA publishes 2019 legal opinions on global master repo agreement

9 April 2019 The International Capital Market Association (ICMA) has today published the 2019 updates to the ICMA GMRA legal opinions which support the Global Master Repurchase Agreement (GMRA), the standard agreement for international repo transactions. Updates have been obtained only for jurisdictions which are not EU member states. Once there is sufficient clarity on the arrangements for the United Kingdom leaving the European Union, ICMA will schedule the update of the EU member state opinions, including the legal opinions for England and Scotland.

View the press release



ICMA survey shows continuing steady growth in the European repo market - market size reaches EUR 7,739 billion

4 April 2019 The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 36th semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 5 December 2018, from the returns of 58 offices of 54 financial groups, sets the baseline figure for European market size at EUR 7,739 billion up from EUR 7,351 billion in the June 2018 survey. Year on year this represents an increase of 6.3% year-on-year since the December 2017 survey.

View the press release
Download the 36th ICMA ERCC European Repo Market Survey




ICMA with the Green Bond Principles Executive Committee responds to European Commission's consultation on the TEG preliminary recommendations for an EU Green Bond Standard

3 April 2019 ICMA with the Green Bond Principles Executive Committee has responded to the European Commission's consultation on the TEG preliminary recommendations for an EU Green Bond Standard.

View the response



ICMA with the Green Bond Principles Executive Committee responds to IOSCO consultation on sustainable finance in emerging markets and the role of securities regulators

1 April 2019 ICMA with the Green Bond Principles Executive Committee has responded to IOSCO consultation on sustainable finance in emerging markets and the role of securities regulators.

View the response



ICMA AMIC responds to ESMA consultation on liquidity stress testing guidelines

28 March 2019 ICMA’s Asset Management and Investors Council (AMIC) has today submitted a response to ESMA’s consultation on liquidity stress testing in UCITS and AIFs. AMIC is supportive of ESMA’s overall approach. However, AMIC cautions that some implementation time is necessary for firms to comply with the requirements. AMIC proposes 18 months implementation time for firms. AMIC also cautions against the use of the bid-ask spread as a liquidity measure for securities and warns that a lack of data on underlying investors make redemption stress testing difficult for asset managers.



New ICMA members in March 2019

The following firms were admitted to ICMA membership in March 2019.
  • Advokatfirmaet BAHR AS, Oslo
  • African Export Import Bank, Cairo
  • Banca Credinvest SA, Lugano
  • Barclays Bank Ireland PLC, Dublin
  • Broadridge Financial Solutions Limited, London
  • Central Securities Depository (GH) Limited, Accra
  • CMS Hasche Sigle Partnerschaft von Rechtsanwälten und Steuerberatern mbB, Berlin
  • D2 Legal Technology Ltd, London
  • Dentons Europe LLP, Frankfurt
  • Industrial and Commercial Bank of China (Asia) Limited, Hong Kong
  • MUFG Securities (Europe) N.V., Amsterdam
  • Société Générale Global Solution Center Private Limited, Bangalore
  • Valiant Bank AG, Bern
  • VTB Bank (Europe) SE, Frankfurt
Bringing the total number of ICMA members to 567 members in 62 countries. Click here to view the full list of ICMA members.



Amendments to the ICMA Primary Market Handbook published

26 March 2019 Amendments to the ICMA Primary Market Handbook have been published today. For more information, see the ICMA Primary Market Handbook - Amendments/archive page.

The associated circular to members is available here for ICMA members and ICMA Primary Market Handbook subscribers only (login details required).



ICMA is delighted to have been able to contribute to the LMA, APLMA and LSTA's new Sustainability Linked Loan Principles

20 March 2018 ICMA is delighted to have been able to contribute to the LMA, APLMA and LSTA's new Sustainability Linked Loan Principles.



ICMA CIF reponds to ESMA consultation paper - Guidelines on Disclosure Requirements applicable to Credit Ratings

18 March 2019 ICMA Corporate Issuer Forum (CIF) has reponded to ESMA's consultation paper - Guidelines on Disclosure Requirements applicable to Credit Ratings.

View the response



ICMA ERCC responds to BCBS consultation on leverage ratio disclosure

13 March 2019 The ICMA ERCC has today responded to a consultative document published by the Basel Committee on Banking Supervision (BCBS), on proposed revisions to leverage ratio Pillar 3 disclosure requirements to include disclosures of the leverage ratio exposure measure amounts of SFTs, derivatives replacement cost and central bank reserves calculated using daily averages over the reporting quarter. In its response, the ERCC welcomes the change being proposed by the BCBS in respect of SFTs, which should help to eliminate the excessive volatility that has been seen on or around reporting dates (such as quarter-ends). Nevertheless, the ERCC continues to have some concerns about excessive restrictions in the repo market, arising from the cumulative effect of regulations over the past several years. Accordingly, alongside the proposed introduction of daily average-based leverage reporting for SFTs, it is considered to be important that the BCBS revisits recommendations for potential targeted refinements to the calibration of the leverage ratio, in order to safeguard the provision of sufficient market capacity and repo availability.

View the response



Japan Securities Summit held in London for the fifth time

At a time of global uncertainty, European institutional investors, banks, securities firms, and other financial experts gather in London to consider the potential of Japan’s financial markets and future cooperation between the international  financial centres of Tokyo and London.

4 March 2019 (LONDON, UK – TOKYO, Japan) The International Capital Market Association (ICMA) and the Japan Securities Dealers Association (JSDA) held their joint conference, the “Japan Securities Summit”, for the fifth time in London at the Mansion House.

The summit, held against a backdrop of political and economic uncertainty for global capital markets, drew together distinguished speakers from both Japan and the United Kingdom—including speakers from the City of London, the Bank of Japan, and the Japanese government—to engage in discussions about future developments.

View the press release.



New ICMA members in Febuary 2019

The following firms were admitted to ICMA membership in February 2019.
  • Bank of Ghana, Accra
  • Barclays Bank UK PLC, London
  • Basler Kantonalbank, Basel
  • Industrial and Commercial Bank of China Limited, Beijing
  • Islamic Development Bank, Jeddah
  • Kotak Mahindra (UK) Limited, London
  • South Street Securities LLC, New York
  • Sumitomo Mitsui Banking Corporation Europe Limited, London
Bringing the total number of ICMA members to 558 members in 62 countries. Click here to view the full list of ICMA members.



Results of the 2019 ICMA European Repo and Collateral Committee elections

We are pleased to announce the results of the 2019 ICMA European Repo and Collateral Committee elections. The 19 individuals that were elected to the new ERCC Committee are listed below. The term of office of the new Committee will be approximately one year starting immediately and ending on the day that the results of the 2020 ERCC elections are announced.

Charlie Badran
AXA Investment Managers Ltd

Nick Dent
Barclays Capital Securities Limited

Emma Cooper
BlackRock Investment Management (UK) Limited

Eugene McGrory
BNP Paribas

Grigorios Markouizos
Citigroup Global Markets Limited

Jean-Robert Wilkin
Clearstream Banking

Andreas Biewald
Commerzbank Aktiengesellschaft

Michel Semaan
Crédit Agricole Corporate and Investment Bank

Romain Dumas
Credit Suisse Securities (Europe) Limited

David Joughin
Deutsche Bank AG

Jean-Michel Meyer
HSBC Bank plc

Nicola Danese
J. P. Morgan Securities plc

Antony Baldwin
LCH Limited

Daniel Bremer
Merrill Lynch International (trading as Bank of America Merrill Lynch)

Paul Van De Moosdijk
PGGM Vermogensbeheer B.V.

Sylvain Bojic
Société Générale S.A.

Richard Hochreutiner
Swiss Reinsurance Company Ltd

Gareth Allen
UBS AG

Harald Bänsch
UniCredit Bank AG



ICMA publishes briefing note on ESMA statement on the use of UK data in ESMA databases and performance of MiFID II calculations in case of a no-deal Brexit

6 February 2019 ESMA published a statement yesterday 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.




ICMA AMIC responds to IOSCO consultation on leverage in investment funds

1 February 2019 AMIC has today responsed to a consultation report by the International Organization of Securities Commissions (IOSCO) on leverage in investment funds. In its response, AMIC welcomes the focus by IOSCO on each fund level on the potentially risky activities of asset managers as compared to an approach at management company level. Furthermore, AMIC agrees with IOSCO’s proposed two-step approach to measuring risk associated with leverage. With regard to the first step, AMIC recommends that the gross notional exposure (GNE) figure is combined with the net notional exposure (NNE) figure to filter potentially risky funds. AMIC views the second step as a framework for a more detailed risk-based analysis of risk in each jurisdiction, recognising that leverage as a concept is not synonymous with risk.

View the response



ICMA AMIC issues guide to due diligence requirements for investing in a securitisation position

31 January 2019 The ICMA’s 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.
View the guide*

*This guide was updated on 19 February 2019.



ICMA launches Green Bond Principles and Social Bond Principles Helpdesk

ICMA is pleased to announce the launch of the Green Bond Principles and Social Bond Principles Helpdesk.

The Helpdesk offers free guidance for members of the International Capital Market Association and for the Green Bond Principles and Social Bond Principles members and observers.

More information
Download brochure



Frequently Asked Questions on Repo updated

17 January 2019 The Frequently Asked Questions on Repo have been updated.

View Frequently Asked Questions on Repo.



ICMA ERCC publishes a briefing note on the European repo market at 2018 year-end

15 January 2019 This report documents and analyses repo market behaviour through 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 year-end itself. Meanwhile, non-core GC saw scarcely an impact, with only some specials becoming difficult to find. The short-date Gilt repo market tightened slightly, however 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. Banks still face pressures to reduce balance sheet, and so their intermediation capacity, in order to comply with a number of entity or jurisdictional specific reporting obligations, including Basel ratios (primarily Leverage Ratio), national bank levies, and the G-SIB capital surcharge. Positioning is also an exacerbating factor, both in terms of bonds/collateral and FX – which is highlighted by the spike in USD rates.

However, since 2016 it would seem as if the market has become more aware of these risks and better prepared in terms of managing its year-end financing and collateral requirements. Locking-in funding early, however, comes at a premium. But, while the extreme levels and dislocations of the 2016 turn have not been repeated since, there is still plenty of quantitative and qualitative evidence to suggest that year-end pressures persist, and that access to repo and lending markets for many firms is impaired.

View the briefing note.



ICMA AMIC publishes joint paper with EFAMA on investment fund liquidity stress tests

8 January 2019 The Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published a joint report on Liquidity Stress Testing (LST) in investment funds. The report highlights the role of stress tests as an important risk management tool which allows the fund manager to assess the impact of different market stresses at the portfolio level. Moreover, it 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.

Based on the analysis, and in view of ESMA’s ongoing work on Guidance for national regulators in respect to LST for investment funds, AMIC and EFAMA have pinpointed three key findings:
  1. A principles-based approach on the Liquidity Stress Testing governance and oversight is the optimal way forward;
  2. Proportionality is key for setting the right framework for LST, allowing the heterogeneous fund sector to tailor stress tests to the profile of the fund, their respective investors and the invested assets; and
  3. Given the existing robust EU regulatory framework, regional and national authorities should now focus on minimising operational impediments and facilitating asset managers’ discharge of their liquidity risk management duties, by ensuring that they can avail themselves of a broad range of liquidity management tools.
AMIC and EFAMA look forward to contributing further to this debate and assisting global regulators in their discussions.



New ICMA members in January 2019

The following firms were admitted to ICMA membership in January 2019.
  • BNP Paribas Securities Services, Paris
  • Capula Investment Management LLP, London
  • Export Development Canada, Ottawa
  • ICICI Bank Limited, Mumbai
  • JPMorgan Asset Management (UK) Limited, London
  • Kerdos Investment-AG TGV, Düsseldorf
  • Nivaura Ltd, London
  • Tokai Tokyo Securities Europe Limited, London
Bringing the total number of ICMA members to 552 members in 60 countries. Click here to view the full list of ICMA members.
Updated version of the ICMA ERCC Guide to Best Practice in the European Repo Market now available

21 December 2018 ICMA has today published an updated version of the ICMA ERCC Guide to Best Practice in the European Repo Market along with a consolidated blackline of amendments to the Guide since it was previously updated in December 2017.

Download the ICMA ERCC Guide to Best Practice in the European Repo Market




Amendments to the ICMA Primary Market Handbook published

19 December 2018 Amendments to the ICMA Primary Market Handbook have been published today. For more information, see the ICMA Primary Market Handbook - Amendments/archive page.

The associated circular to members is available here for ICMA members and ICMA Primary Market Handbook subscribers only (login details required).



ICMA publishes primary markets technology mapping directory

18 December 2018 The International Capital Market Association (ICMA) has launched a comparative mapping of electronic primary bond markets solutions. The ICMA 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.

Fixed income primary markets are evolving, and technology is playing an increasingly important role in the issuance process of debt securities. Building on ICMA’s 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.

View the press release.
View the directory.




Post-crisis regulation requires further evaluation as it could be detrimental for repo and securities lending markets finds GFMA and ICMA market assessment

17 December 2018 The Global Financial Markets Association (GFMA) and the International Capital Market Association (ICMA) have today published a report, The GFMA and ICMA Repo Market Study: 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.

The report 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.

View the press release
View the report




IFL Essay Competition winner 2018

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?’, in time for 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.

Alexander introduced his essay as “another boring big data paper from a millennial telling me how Snapchat will take over the global bond markets”. Of course his essay is far from boring, refreshingly challenging the current status quo of (under)usage of data, and presenting a realistic evolution of Debt Capital Markets anchored in more personal and insightful interactions with clients through a fully efficient gathering and categorising of any data available.

He does wonder in his conclusions whether bankers really have to invest in a clearer and more thorough data pool; whether issuers really care about the ‘true’ insights a bank has or is it actually ‘peoples business’ and soft selling skills are actually much more important than the thorough analysis of investor behaviour and markets; and more importantly whether it is really going to lead to more mandates and more business. Interesting discussion points for the ICMA Board to ponder looking ahead at the next 10 years.



Joint associations letter to Vice-President Dombrovskis on Temporary Equivalence and Recognition in relation to UK CCPs

7 December 2018 The International Swaps and Derivatives Association (ISDA), Futures Industry Association (FIA), Association for Financial Markets in Europe (AFME) and International Capital Markets Association (ICMA) have written to the European Commission to welcome the statement regarding temporary equivalence for the purpose of recognition for UK CCPs in the European Commission’s Communication regarding Brexit Contingency Planning published 13 November (“Communication”) and the statement by ESMA published on 23 November.
 
The signatory organisations are committed to supporting financial stability and appreciate the clearly stated intention of the Commission’s Communication, to clarify that there will be continuity of service for EU members in this area of systemic importance, even in a hard Brexit scenario. Yet it has been identified that certain areas of uncertainty nonetheless remain and it is important that these urgently be clarified, in order to avoid undue disruption.
 
View the letter.



New report from ICMA shows European bond markets still waiting to experience the benefits of MiFID II implementation

6 December 2018 ICMA has today published a report on the impacts and challenges of MiFID II/R for the international bond market in the year since the implementation date.

The introduction of the second Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) on 3 January 2018 was flagged as the most significant development to impact European bond markets in memory, with new requirements affecting everything from how new issues are marketed, to transaction reporting, trade transparency, secondary market structure, evidencing best execution, and even how fixed income research is distributed and consumed. Despite anxiety in the market in the lead-up to implementation about how the new rules should be interpreted and implemented, in the first weeks of January 2018 it became clear that for European bond markets it was business as usual, and the market continued to function with little or no visible impact on liquidity.

View the press release.
View the report.




Adopting International Practices of Bond Trustee Arrangements in China - An ICMA and NAFMII publication

5 December 2018 NAFMII and ICMA have published a guide which sets out international bond trustee arrangements and its application worldwide along with global practices of bond trustee services. ‘International Practices of Bond Trustee Arrangements’ serves to highlight 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.

View the press release.
View the publication.




ICMA publishes Brexit FAQs

ICMA has published its responses to Frequently Asked Questions (“FAQs”) that have been raised with ICMA in the light of the UK’s proposed exit from the European Union (“Brexit”).

The links, which in some cases can only be accessed by ICMA members are available here.



ICMA AMIC publishes its latest AMIC Review publication

ICMA’s Asset Management and Investors Council (AMIC) issued its latest AMIC Review publication which is now in its third edition. The purpose of the Review is to highlight the role of the buy-side community within ICMA, to remind market participants of the objectives of AMIC and to outline the activities of its working groups. Noteworthy contributions include AMIC’s work on fund liquidity and leverage in funds, the work on primary market announcement terms from an investor perspective and the policy work on the covered bond and securitisation legislations. AMIC would like to thank all of its members who have contributed to the good work highlighted in this Review.









ICMA AMIC survey on FICC research unbundling

23 November 2018 ICMA’s Asset Management and Investors Council (AMIC) today issued the results of the second AMIC FICC Research Unbundling survey. 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. This survey was aimed at buy-side firms and focused on FICC research only.

The results show that 79% of firms who responded pay for FICC Research from their P&L, up from 67% last year. On SME research, 43% of respondents noticed a decrease in availability and breadth of research, a trend which we expect will continue. Respondents’ approach to tackling the conflicting rules around FICC research globally seems to be equally split between unbundling research fees globally (35%) and segregating the EU and non-EU businesses (35%) - a stark change from last year when 64% of firms were planning to unbundle globally and only 7% were planning to segregate their businesses.  

We hope that the our members and the market find the results helpful and informative. Please let us know if you have any feedback or would like to discuss these results.



New ICMA members in November 2018

The following firms were admitted to ICMA membership in November 2018.
  • National Bank of Bahrain BSC, Manama
  • Dorsey & Whitney LLP, Hong Kong
Bringing the total number of ICMA members to 551 members in 62 countries. Click here to view the full list of ICMA members.



ICMA Legal and Documentation Committee responds to ARRC consultation regarding more robust LIBOR fallback contract language for new issuances of USD-LIBOR floating rate notes

16 November 2018 The ICMA Legal and Documentation Committee has responded to the ARRC consultation regarding more robust LIBOR fallback contract language for new issuances of USD-LIBOR floating rate notes.

View the response



European repo market continues to grow with latest ICMA survey indicating baseline market size at record EUR 7,351 billion

17 October 2018 (London, UK) The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 35th semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 6 June 2018, from the returns of 62 offices of 59 financial groups, sets the baseline figure for European market size at EUR 7,351 billion up from EUR 7,250 billion in the December 2017 survey. Year on year this represents an increase of 13.9%  since the June 2017 survey.

View the press release
Download the 35th ICMA ERCC European Repo Market Survey




ICMA publishes discussion paper on CSDR mandatory buy-ins and securities financing transactions

3 October 2018 Today ICMA published a discussion paper on CSDR mandatory buy-ins and securities financing transactions. The paper is intended to complement ICMA’s previous work on the topic of CSDR Settlement Discipline, due to come into force in September 2020, and focuses more specifically on the implementation challenges for in-scope repo and securities lending markets.

Currently, SFTs have their own contractual provisions in the event of a settlement fail, laid out in the relevant GMRAs and GMSLAs. Buy-ins, as utilized in the outright cash markets, generally do not apply to SFTs. However, under the new regulation, SFTs with terms of 30 business-days or longer will be in scope of the mandatory buy-in provisions. This creates a number of complications and ambiguities which the paper seeks to explore and discuss. In doing so, it also intends to lay  the ground-work for constructive dialogue between market participants and the regulatory authorities to resolve the various challenges and support successful implementation, with minimal disruption to market functioning and liquidity.



New ICMA members in October 2018

The following firms were admitted to ICMA membership in October 2018.
  • CBP Quilvest S.A., Luxembourg
  • Electricite de France SA, Paris
  • ICAP Securities Limited, London
  • Industrial and Commercial Bank of China (Europe) S.A., Luxembourg
  • Lloyds Bank Corporate Markets plc, London
  • Nasdaq Stockholm AB, Stockholm
  • SGX Bond Trading Pte. Ltd., Singapore
  • Swedbank Robur Fonder AB, Sundbyberg
Bringing the total number of ICMA members to 549 members in 62 countries. Click here to view the full list of ICMA members.



Amendments to the ICMA Primary Market Handbook published

26 September 2018 Amendments to the ICMA Primary Market Handbook have been published today. For more information, see the ICMA Primary Market Handbook - Amendments/archive page.

The associated circular to members is available here for ICMA members and ICMA Primary Market Handbook subscribers only (login details required).



ICMA publishes paper on Regulatory approaches to FinTech and innovation in capital markets

7 September 2018 The rise of FinTech has sparked increasing interest from financial regulators. Applications of distributed ledger technology, machine learning, big data analytics or cloud computing, to name a few, have significant potential to alter business models and impact the functioning of financial markets. In response, financial regulators have adopted different approaches to address FinTech and innovation in their respective jurisdictions.

The purpose of this paper is to provide an overview of financial regulators’ approaches to FinTech, identify relevant use cases for capital markets, notably cross-border debt capital markets, and provide a sense of the direction of travel. The paper is based on publicly available information and covers selected regulatory initiatives across 26 jurisdictions within Europe, Asia and North America.

View the paper

See also: FinTech and market electronification



ICMA publishes report on the Asia-Pacific cross-border corporate bond secondary market

30 August 2018 ICMA has published a report on the state and evolution of the Asia-Pacific cross border corporate bond secondary market. While the report is primarily focused on G3 (USD, EUR, GBP) denominated bonds of non-financial and financial corporate issuers, as defined by having the issuer country of risk within the APAC region, it also explores the ongoing internationalisation of local currency markets, in particular the Chinese market.

The report highlights the rapid rise in issuance and the size of the G3 (in particular USD) corporate bond market since 2011, which has accelerated in the past two years driven primarily by Chinese financial and non-financial issuers coming to the market. From 2011 to 2017, annual G3 APAC corporate issuance has more than trebled to over USD 930bn, with Chinese names accounting for more than 40% of total issuance in 2017, compared with less than 20% in 2011. The report sets the size of the market at May 2018 at approximately 8,500 outstanding issues with a nominal value of almost USD 2.5 trillion.

View the press release.
Download the paper.




New ICMA members in August 2018

The following firms were admitted to ICMA membership in August 2018.
  • China Construction Bank (Asia) Corporation Limited, Hong Kong
  • CSI Capital Management Limited, Tortola
  • Fieldfisher LLP, London
  • Vanguard Asset Management, Ltd., London
Bringing the total number of ICMA members to 542 members in 62 countries. Click here to view the full list of ICMA members.



ICMA publishes position paper on MiFID II Trading suspensions from the perspective of fixed income instruments

2 August 2018 ICMA has published a position paper on MiFID II Trading suspensions from the perspective of fixed income instruments. The paper highlights scenarios where a blanket suspension of trading in debt instruments or related derivatives could be damaging to investors’ interests and the orderly functioning of the market. The paper further recommends that NCAs consider such circumstance, and possibly consult with market stakeholders, before imposing removals or suspensions of trading under Articles 32 and 52 of the regulation.

View the paper



Publication of paper relating to new issuance of Sterling bonds referencing Libor by the Working Group on Sterling Risk-Free Reference Rates

23 July 2018 ICMA is playing an important role in the work that is underway globally to transition away from IBORs and towards risk-free rates. As part of that, Paul Richards, Head of Market Practice and Regulatory Policy at ICMA, chairs the Sterling Risk-Free Rate Bond Market Sub-Group and is a member of the Working Group on Sterling Risk-Free Reference Rates.  

ICMA wishes to draw its members’ attention to the publication of a paper relating to new issuance of Sterling bonds referencing Libor by the Working Group on Sterling Risk-Free Reference Rates. The considerations in the paper are likely to have relevance for issuance of international floating rate bonds in all currencies for which Libor is quoted.

Download the paper

See also:
ICMA's webpage on benchmark reform and transition to risk-free rates
Bank of England's webpage on transition to sterling risk-free rates from Libor




Quarterly newsletter from the Green & Social Bond Principles - July 2018

19 July 2018 The latest edition of the quarterly newsletter from the Green & Social Bond Principles is now available.

VIEW THE NEWSLETTER



ICMA publishes information brochure on CSD Regulation mandatory buy-ins

19 July 2018 ICMA has published an information brochure on CSD Regulation mandatory buy-ins, outlining the scope and regulatory requirements. The CSDR buy-in provisions are expected to come into force in September 2020 and will also apply to non-EU/EEA domiciled trading entities. The brochure is part of ICMA’s ongoing work to ensure industry awareness and preparedness in the international cross-border fixed income markets.

DOWNLOAD THE INFORMATION BROCHURE



Publication of Consultation on Term SONIA Reference Rates by the Working Group on Sterling Risk-Free Reference Rates

ICMA wishes to draw its members’ attention to the publication of a Consultation on Term SONIA Reference Rates (TSRR) by the Working Group on Sterling Risk-Free Reference Rates. The Consultation focuses on how a TSRR can be constructed in order to facilitate sterling Libor transition in markets where term rates better suit users’ needs, and seeks feedback on practical recommendations aimed at catalysing the development of TSRRs. Responses should be provided to the RFR Secretariat by 30 September 2018.

Download the consultation

See also:
ICMA's webpage on benchmark reform and transition to risk-free rates
Bank of England's webpage on transition to sterling risk-free rates from Libor




Video of international benchmark reform panel at ICMA's 50th AGM & Conference in Madrid, May 31, 2018

In order to continue to raise market awareness of the transition to risk-free rates, the video recording of the panel on international benchmark reform held at the 50th ICMA AGM & Conference in Madrid on May 31 may be viewed here.

The panel features:
  • Roman Baumann, Head of Money Market, Swiss National Bank
  • David Bowman, Advisor, Board of Governors, The Federal Reserve
  • Cornelia Holthausen, Deputy Director General, European Central Bank
  • Edward Ocampo, Senior Advisor - Markets, Bank of England
  • Edwin Schooling Latter, Head of Markets Policy, Strategy & Competition, Financial Conduct Authority
Moderated by Paul Richards, Managing Director, Head of Market Practice and Regulatory Policy, ICMA



ICMA publishes new discussion paper on the CSD regulation: ‘How to survive in a mandatory buy-in world’

26 June 2018 The International Capital Market Association (ICMA) has today published a discussion paper on the potential market consequences of one of the provisions of the Central Securities Depository Regulation (CSDR), entitled: ‘How to survive in a mandatory buy-in world’.

View the press release.
Download the paper.




ISDA, AFME, ICMA, SIFMA and SIFMA AMG Publish Global Benchmark Report

25 June 2018 The International Swaps and Derivatives Association, Inc. (ISDA), the Association of Financial Markets in Europe (AFME), International Capital Market Association (ICMA) and the Securities Industry and Financial Markets Association (SIFMA) and its asset management group (SIFMA AMG) have published a new report that assesses the issues involved with benchmark reform, and makes recommendations on steps firms can take to prepare for the transition from interbank offered rates (IBORs) to alternative risk-free rates (RFRs).

View the press release.



An open letter to senior political leaders on 'Brexit: Cliff-edge risks in international capital markets'

22 June 2018 ICMA’s members in the UK, Continental Europe and beyond have real and increasingly pressing concerns about the cliff-edge risks of Brexit, which would fragment international debt capital markets and damage business in the real economy and financial stability. Accordingly, we have written an open letter to senior political leaders giving specific examples of these risks and proposing a way in which the situation might be resolved ahead of Brexit.



New ICMA members in June 2018

The following firms were admitted to ICMA membership in June 2018.
  • Allen & Gledhill LLP, Singapore
  • Baker & McKenzie LLP, London
  • Bank of Nanjing, Nanjing
  • FinecoBank Banca Fineco S.p.A., Milan
  • Insight Investment Management (Global) Limited, London
  • Jane Street Financial Limited, London
  • Qatar Financial Centre Authority (QFCA), Doha
  • Roschier Advokatbyrå AB, Stockholm
  • State Street Bank and Trust Company, London Branch, London
  • The Central Bank of the Republic of Armenia, Yerevan
Bringing the total number of ICMA members to 540 members in 62 countries. Click here to view the full list of ICMA members.



Asset purchases to end in December 2018

14 June 2018 Following its meeting on June 14 2018, the ECB’s Governing Council announced that its Asset Purchase Programme (APP) will reduce its purchases of €30bn per month to €15bn per month after September, and cease at the end of December, subject to future economic data. The ECB also updated its forward guidance on rates, stating that these would remain at their present levels at least through to summer of 2019, and potentially longer, depending on its inflation outlook. The ECB provided no update on APP reinvestments.

Bond markets have taken the announcement and subsequent press conference as relatively dovish. In response to the news 2yr German government bond yields fell 5bp and 10yr yields 6bp. Meanwhile, credit spreads tightened, with the 5yr iTraxx main moving 3bp lower and the 5yr iTraxx cross-over 8bp lower.

For more information on Central Bank corporate bond purchase programmes, please click here.



ICMA and HKMA co-host the 2018 Green and Social Bond Principles Annual General Meeting and Conference in Hong Kong

14 June 2018 The Green Bond Principles (GBP) and Social Bond Principles (SBP) AGM & Conference is an established, high-profile gathering for leaders in the green bond market and increasingly for the growing social and sustainable bond markets and other asset classes in sustainable finance. The conference today brought together some 800 industry professionals from around the world, including investors, issuers, intermediaries, external reviewers and rating agencies, the official sector including policy makers and market supervisors, stock exchanges, law firms and other professional services firms, to debate advances in this market and the requirements.

View the press release.



Green Bond Principles and Social Bond Principles 2018 editions now released along with best practice guidelines for external reviewers, a mapping to the Sustainable Development Goals and a framework for social bonds impact reporting

14 June 2018 On the occasion of the 4th Annual General Meeting and Conference of the Green Bond Principles held in Hong Kong today, the updated versions of the Green Bond Principles, Social Bond Principles and the Sustainability Bond Guidelines (the “Principles”) were published. A number of key documents that complement the Principles were also released.

View the press release.



ICMA co-signs industry letter to European Commission on supporting securitisation

6 June 2018 ICMA has joined several other leading European trade associations in signing a letter to the European Commission expressing support for the recently agreed simple, transparent and standardised (STS) securitisation framework in Europe. However, the signatories stress that for STS securitisation to be successful, and for the wider securitisation market to recover, it is critical that other pieces of EU legislation are calibrated appropriately to create the right conditions and incentives to support and encourage securitisation. Important calibrations for securitisation investments in Solvency 2 and the Liquidity Coverage Ratio (LCR) do not go far enough in addressing the harsh treatment of securitisation. The associations are concerned that without a more ambitious approach that fully recognises the prudential strength of securitisation in Europe, especially STS securitisations, the new Common Framework and STS Framework may become a missed opportunity.



ICMA members elect new board at Madrid meeting and new ICMA Board Chair appointed

31 May 2018 (Madrid) Members of the International Capital Market Association (ICMA), the global trade association for cross-border bond markets, have elected new board members at the 50th ICMA AGM in Madrid.

The new board subsequently appointed Mandy DeFilippo, a Managing Director and Head of Risk Management for Fixed Income & Commodities, EMEA at Morgan Stanley, as the ICMA Board Chair. She replaces Martin Egan, Vice Chairman of Global Markets Client Board at BNP Paribas SA, who stepped down at the end of his term as an ICMA board member. Jean-Marc Mercier, Global Co-Head Debt Capital Markets, HSBC Bank plc was appointed Deputy Chair.

The following were elected to the ICMA Board:
Marc Baigneres, J.P. Morgan Securities plc, London
Jakob Groot, Danske Bank A/S, Copenhagen
Nannette Hechler-Fayd’Herbe de Maudave, Credit Suisse AG, Zurich
Fabio Lisanti, Citigroup Global Markets Limited, London
Jean-Marc Mercier, HSBC Bank plc, London
Chris Muyldermans, KBC Bank N.V., Brussels

View the press release



ICMA publishes briefing note on the RTS for CSDR-SD related to the mandatory buy-in regime

29 May 2018 ICMA has published a briefing note on the RTS for CSDR-SD related to the mandatory buy-in regime. The note outlines the key characteristics of the mandatory buy-in framework, and discusses the expected impacts this is likely to have with respect to bond market liquidity, repo and lending markets, increased risks to buy-sides, market stability, potential extraterritorial implications, as well as conflicts with the aims of CMU. It also references the original marker impact study undertaken by ICMA in 2015, which suggests significant costs to buy-side firms, (running into €10s of billions per annum) through adjusted bond market pricing and reduced liquidity.

European Commission publishes regulatory technical standards (RTS) for CSDR Settlement Discipline

The European Commission has published the regulatory technical standards (RTS) for CSDR Settlement Discipline, including mandatory buy-ins, following ESMA’s submission of the draft RTS in February 2016.

The European Parliament and Council will have three months to scrutinize the RTS, after which it will be published in the Official Journal. The CSDR-SD package will come into force 24 months after it is published in the OJ, expected to be September 2020.



ICMA welcomes European Commission’s proposals for implementing its Action Plan on Sustainable Finance

24 May 2018 The International Capital Market Association (ICMA) welcomes the European Commission’s first proposals for implementing its Action Plan on Sustainable Finance aimed at delivering concrete actions to enable the EU financial sector to lead the way to a greener and cleaner economy.

ICMA participated in the Commission’s High-Level Expert on Sustainable Finance that published an influential report preceding the Commission’s Action Plan. ICMA also provides the Secretariat of the Green Bond Principles, the globally recognized guidelines for issuers of green bonds.

View the press release



ICMA Overview of the ESMA Liquidity Assessment for Bonds (May-Aug 2018), including the list of liquid bonds

21 May 2018 ICMA publishes an overview of the ESMA Liquidity Assessment for Bonds (May-Aug 2018), including the list of liquid bonds.

Download the overview



ICMA AMIC publishes position on ESRB review

16 May 2018 AMIC has issued a position paper on the on-going review of the European Systemic Risk Board (ESRB). In light of the recent Recommendation on liquidity and leverage risks in investment funds (ESRB/2017/6), we believe that ESRB’s governance could be improved. AMIC believes that the lack of public consultation, the intrusion by macro-risk supervision into the field of micro-regulation, and the unbalanced composition of the board of the ESRB justifies that the ESRB review includes an improvement of the functioning and composition of the ESRB. AMIC lays out two targeted changes to the ESRB review proposal to balance the composition of the ESRB to ensure greater representation from securities markets and to ensure consultation with industry takes place where legislative change is recommended.



ICMA CBIC issues position paper on EU covered bond legislation

20 April 2018 The Covered Bond Investor Council (CBIC) has issued a position paper on the recently released European Commission’s legislative proposal on covered bonds. The CBIC welcomes the legislative initiative on covered bonds. Investors appreciate the blueprint this law will provide to countries that do not yet have a covered bond law. Furthermore, the CBIC appreciates that the Commission has adopted a principles based approach that should allow existing national frameworks to continue to operate as before. This flexibility is welcome, however in some places it goes too far and risks lowering the high standards investors have come to expect in covered bonds. Our position paper develops on some of the areas, such as eligible assets or extendable maturities, where investors would like to see more clarity and stricter criteria to ensure investor protection is upheld. The CBIC will engage with policy makers in the coming months on this proposal to ensure that the investor voice is heard in the legislative process.



ICMA ERCC responds to Commission consultation on the finalisation of Basel III

12 April 2018 ICMA's ERCC has responded to a consultation by the European Commission on the finalisation of Basel III. The ERCC response calls for great care to be taken to fully assess the way in which further measures, particularly regarding haircuts, are calibrated.

View the response



ICMA publishes 2018 legal opinions on global master repo agreement

11 April 2018 (Zurich, Switzerland) The International Capital Market Association (ICMA) has today published the 2018 updates to the ICMA GMRA legal opinions which support the Global Master Repurchase Agreement (GMRA), the standard agreement for international repo transactions. The 2018 opinions cover the use of the GMRA in over 60 jurisdictions worldwide. This considerable body of legal work is made available to ICMA members as a part of their membership of the association.

View the press release



ICMA AMIC publishes statement on fund delegation

10 April 2018 ICMA’s Asset Management and Investors Council (AMIC) has today published a statement on fund delegation, underlining the importance of fund delegation to the asset management business model and the threat from recent legislative proposals.
 
Delegation is one of the key pillars supporting the EU’s cross-border investment model which has made UCITS, and increasingly AIFs, a global brand and a European success story. The European Commission’s proposal to review the European Supervisory Authorities gives the European Securities and Markets Authority the power to issue opinions on existing and future delegation arrangements. AMIC believes this proposal could threaten the success of the European asset management business.
 
AMIC believes it is important not to jeopardise well-functioning savings and investment markets that European asset managers serve through policy initiatives that may have good intentions but result in potentially serious damage to the industry.



ISDA, EBF, ICMA and ISLA Publish Whitepaper on Benefits of Post-Trade Risk Reduction Services

10 April 2018 The International Swaps and Derivatives Association, Inc. (ISDA), the European Banking Federation (EBF), International Capital Market Association (ICMA) and the International Securities Lending Association (ISLA) have today published a whitepaper on the benefits of post-trade risk reduction services as a crucial risk management tool.

View the press release
Download the white paper




ICMA’s ERCC has recently decided to discontinue coverage of the GMRA 1995 in the ICMA GMRA legal opinions from 2019 onwards

20 March 2018 Since the early 1990s, ICMA has devoted considerable resources to developing a standard master agreement for repo. The first version of the GMRA was published in 1992 and was followed by substantially revised versions in 1995, 2000 and 2011. ICMA obtains and annually updates opinions from numerous jurisdictions worldwide on the GMRA 1995, 2000 and 2011 versions for the benefit of its members.

ICMA’s European Repo and Collateral Committee recently decided to discontinue coverage of the GMRA 1995 in the ICMA GMRA legal opinions from 2019 onwards.

Contact: legalhelpdesk@icmagroup.org.



Latest ICMA survey sets baseline size of the European repo market at record EUR 7,250 billion - Repo market shows signs of adapting to new regulatory environment

14 March 2018 The European Repo and Collateral Council (ERCC) of the International Capital Market Association (ICMA) has today released the results of its 34th semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 6 December 2017 from the returns of 64 offices of 60 financial groups, sets the baseline figure for European market size at EUR 7,250 billion. This is the largest figure ever recorded by the survey since it began in 2001 and exceeds pre-crisis figures for the size of the repo market in Europe. After a period of 4 years where market size has remained static, with largely seasonal fluctuations, this survey shows growth, in terms of contracts outstanding on the survey date, of 12.3% since the last survey in June 2017 and 28.2% year on year.

View the press release
Download the 34th ICMA ERCC European Repo Market Survey




Press release on the Action Plan on sustainable finance of the European Commission

8 March 2018 The members of the Global Green Finance Council (GGFC) support the European Commission’s Action Plan on sustainable finance and note its breadth and ambition with 12 different workstreams promoting the transition to a sustainable economy. The Action Plan will help align further the existing initiatives and efforts of the financial industry with policy objectives, and we especially welcome:
  • the proposed creation of an EU Sustainable Taxonomy;
  • the development of an EU Green Bond standard through a flexible and non-legislative proposal based on existing market best practice;
  • the emphasis on incorporating climate risks into the risk management processes of financial institutions with reference in particular to the industry-led Financial Stability Board’s Task Force on Climate-Related Financial Disclosure (TCFD) work;
  • the study of the potential merits of including sustainability factors in prudential requirements;
  • increasing resources and building sustainability expertise at the level of the European Supervisory Agencies.
View the press release



ICMA AMIC responds to FRC consultation on corporate governance and stewardship

28 February 2018 ICMA's AMIC has responded to a consultation by the UK Financial Reporting Council (FRC) on the review of the UK Corporate Governance Code and on the UK Stewardship Code. The AMIC response calls for an enhanced role for bond holders in corporate engagement with stakeholders but recommends that the comply and explain approach is retained as a flexible way for companies and investors to adhere to the Code. AMIC looks forward to continued engagement with the FRC, in particular when a more thorough review of the Stewardship Code is launched later this year.

Download the response



ICMA responds to the European Commission’s 'Public consultation on building a proportionate regulatory environment to support SME listing'

22 February 2018 ICMA has responded to the European Commission’s consultation 'Public consultation on building a proportionate regulatory environment to support SME listing'. Limited to one question relating to the applicability of the MAR soundings regime to private placement, the response was supported by the MAR Working Group of the ECPP Joint Committee and amplifies the findings of the recently-released Linklaters/BCG study “Identifying market and regulatory obstacles to the development of private placement of debt in the EU”.



ICMA publishes study into the European single name credit default swap market

15 February 2018 ICMA has published a report on the current state and evolution of the European corporate single name credit default (SN-CDS) market, focused on its benefits for liquid and efficient corporate bond markets.

The report is based on interviews with market participants, including buy-side users, as well as extensive data and quantitative analysis. It sets out to map the state of the market, establishing who are its main users and what benefits and risks are associated with the product. Concentrating on the European corporate SN-CDS market it looks at where and how liquidity is provided, and the related costs and challenges of the CDS product.

View the press release
Download the study



Results of the 2018 ICMA European Repo and Collateral Committee elections

We are pleased to announce the results of the 2018 ICMA European Repo and Collateral Committee elections. The 19 individuals that were elected to the new ERCC Committee are listed below. The term of office of the new Committee will be approximately one year starting immediately and ending on the day the results of the 2019 ERCC elections will be announced.

Godfried De Vidts
Chairman
BrokerTec Europe Limited, London

Jayne Forbes
AXA Investment Managers Ltd

Michael Manna

Barclays Capital Securities Limited

Emma Cooper   
Blackrock Investment Management (UK) Limited

Eugene McGrory
BNP Paribas

Grigorios Markouizos
Citigroup Global Markets Limited

Jean-Robert Wilkin
Clearstream Banking Luxembourg

Andreas Biewald
Commerzbank Aktiengesellschaft

Michel Semaan
Crédit Agricole Corporate and Investment Bank

Romain Dumas
Credit Suisse Securities (Europe) Limited

Jean-Michel Meyer
HSBC Bank PLC

Nicola Danese
J. P. Morgan Securities plc

Antony Baldwin
LCH Limited

Daniel Bremer
Merrill Lynch International (trading as Bank of America Merrill Lynch)

Paul van de Moosdijk

PGGM Vermogensbeheer B.V.

Sylvain Bojic
Société Générale S.A.

Richard Hochreutiner

Swiss Reinsurance Company Ltd

Gareth Allen

UBS Limited

Harald Bänsch
UniCredit Bank AG



New ICMA members in February 2018

The following firms were admitted to ICMA membership in February 2018.
  • Ahli United Bank, B.S.C., Manama
  • Asian Infrastructure Investment Bank (AIIB), Beijing
  • Bank of Finland, Helsinki
  • La Banque Postale Asset Management
  • Shenzhen Stock Exchange, Shenzhen
Bringing the total number of ICMA members to 531 members in 61 countries. Click here to view the full list of ICMA members.



ISDA, AFME, ICMA, SIFMA and SIFMA AMG Launch Benchmark Transition Roadmap

1 February 2018 The International Swaps and Derivatives Association, Inc. (ISDA), the Association of Financial Markets in Europe (AFME), International Capital Market Association (ICMA) and the Securities Industry and Financial Markets Association (SIFMA) and its asset management group (SIFMA AMG) have today launched a roadmap that highlights key challenges involved in transitioning financial market contracts and practices from interbank offered rates, or ‘IBORs’, to alternative risk-free rates (RFRs).

View the press release
Download the roadmap



EU’s High Level Expert Group report on sustainable finance published

31 January 2018 ICMA, which was represented on the HLEG group, comments on the report:

“We have been pleased to contribute to the European Commission’s HLEG on Sustainable Finance from the outset, and see the final report released today as a real step forward in creating a framework for the financing of a sustainable European economy.

We believe that many of the recommendations in this report will be taken into the European Commission’s Action Plan on sustainable finance, contributing also to the critical Capital Markets Union Initiative. In particular, the proposal for an EU classification system, or taxonomy, would provide additional clarity and detail for issuers and investors in the green bond market where ICMA supports the Green Bond Principles.

We note also key recommendations such as for a European green bond standard, complementary to the market developed Green Bond Principles, and for the clarification of investor duties to extend the time horizons of investment and bring greater focus on ESG factors into investment decisions. As the report itself underlines, the challenge will be to find the right balance in implementation and ‘to not increase the regulatory burden and complexity given the ultimate purpose is to facilitate more investment’.
We look forward to the opportunity of contributing to the European Commission’s Action Plan on sustainable finance, and to continuing our work in the green, social and sustainability bond markets with the Green Bond Principles.”

Press release
Report



ICMA AMIC responds to publication of the ESAs Review
23 January 2018 Today ICMA’s Asset Management and Investors Council (AMIC) has published its response to the publication of the proposals to review the European Supervisory Authorities (ESAs) and the European Systemic Risk Board (ESRB).

AMIC welcomes many of the very positive aspects of the proposals. ICMA and AMIC are strong supporters of Capital Markets Union (CMU) and we welcome proposals which will help to deliver better functioning capital markets for investors, including in the areas of: (1) enhanced supervisory convergence; (2) inclusion of ESG factors; (3) cost-benefit analyses for guidance and recommendations; (4) improved third country equivalence; and (5) role for ESMA in data collection.

Nevertheless, AMIC also has some significant concern with several elements of the texts. These proposals should be revisited if this framework is to be successful in increasing supervisory convergence and addressing the challenge of the UK leaving the EU. Our significant concerns, which we will outline in greater detail in our response, are in the areas of: (1) direct supervision of funds; (2) ESMA opinions on delegation arrangements; (3) funding arrangements; (4) consultations on Q&As; and (5) organisation of the ESRB.



HKMA and ICMA to co-host the Green and Social Bond Principles Annual General Meeting and Conference in Hong Kong in June

16 January 2018 The Hong Kong Monetary Authority (HKMA) and the International Capital Market Association (ICMA) will co-host the Green and Social Bond Principles Annual General Meeting and Conference in Hong Kong in June.

The annual general meeting and conference is a flagship international green finance event, bringing together senior public and private sector representatives from all over the world to discuss market and regulatory developments. This is the first time that this event will be held in Asia, which is home to a rapidly growing green bond market. Cumulative green bond issuance in Asia reached almost USD 80 billion by end of 2017, with China dominating volumes – at USD 31 billion in 2017 alone.

View the press release
View the Chinese version



ICMA publishes report on state of the European repo market at year-end 2017

15 January 2018 (London, UK) ICMA has published a report on the European repo market at year end 2017, based on market data and interviews with market participants (sell-side and buy-side) to provide a brief analysis of the way the market performed and the underlying factors that affected it.

View the press release
Download the report



Michael Sansen of ING appointed as the new Chairman of the ICMA Future Leaders Committee

We are delighted to announce that Michael Sansen of ING has been appointed as the new Chairman of the Future Leaders Committee, with a term date of 3 years. Michael has been an active and dedicated committee member since the Future Leaders committee was launched and has worked closely with his predecessor, Konstantin Angelidis of Rabobank. We would like to thank Konstantin for his hard work and leadership during his term as the first Chairman of the committee.
 
Michael Sansen says: “In this 50th year anniversary of ICMA, I am grateful for this opportunity and motivated to steer the Future Leaders initiative forward. I would like to thank Konstantin for his leadership over the past 3 years and for being a major driver of this committee. It is a privilege and a pleasure to take over his role and continue with his efforts. I am convinced that this talented group will come up with impactful ideas and initiatives in the years to come and continue to be a useful platform for all young professionals in this industry. Education possibilities, career development and networking will remain key pillars throughout our agenda. I look forward to welcoming you at any of our events or on our LinkedIn page!”

Updated version of the ICMA ERCC Guide to Best Practice in the European Repo Market now available

18 December 2017 ICMA has today published an updated version of the ICMA ERCC Guide to Best Practice in the European Repo Market along with a consolidated blackline of amendments to the Guide since it was previously updated in February 2017.

Download the ICMA ERCC Guide to Best Practice in the European Repo Market




New ICMA members in December 2017

The following firms were admitted to ICMA membership in December 2017.
  • Banque de Commerce et de Placements SA, Geneva
  • Bonelli Erede Pappalardo LLP, London
  • New Development Bank, Shanghai
  • Quirin Privatbank AG, Berlin
Bringing the total number of ICMA members to 536 members in 61 countries. Click here to view the full list of ICMA members.



Joint-industry group publishes directory of global and regional green finance policy initiatives


7 December 2017 The Global Green Finance Council (GGFC) has today published the first version of its reference guide to global and regional policy initiatives on green finance.

The “Global and European Green Finance Policy Directory” is authored by the GGFC, a group comprised of global and regional financial industry organisations. The GGFC was founded by the Global Financial Market Association (GFMA), the International Capital Market Association (ICMA), the European Banking Federation (EBF), the European Covered Bond Council (EMF-ECBC), the Institute of International Finance (IIF), the Loan Market Association (LMA) and the World Federation of Exchanges. Other organisations are participating as observers, including CERES, the European Financial Roundtable (EFR) and InsuranceEurope.

The purpose of the Directory is to provide policymakers and global and regional market participants with a simple reference guide to the major initiatives on green finance, sustainability and climate change being implemented by international and regional bodies and industry organisations.

View the press release

Download the directory



ICMA publishes new FinTech mapping directory for repo and cash bond operations

22 November 2017 ICMA’s ERCC Ops FinTech Working Group (WG), a subgroup of the ICMA European Repo and Collateral Council (ERCC), has published today a mapping directory of over 80 technology solutions available for repo and cash bond operations. The directory is divided into 10 categories including collateral management, exposure agreements and reconciliations. It provides information on how each solution can be used, for example at which stage of the trade lifecycle, whether for cleared or uncleared transactions and where the solution sits within the IT infrastructure.

The ICMA Ops FinTech mapping directory compares the capabilities of different providers and seeks to create greater transparency in a very dynamic and fluid market. It focuses on providers and solutions that are used by WG members, and is intended to be a living document. All responses in the mapping have been put together in close collaboration with the vendors and validated by them. The document can be accessed by ICMA member firms and the public on ICMA’s website.

Download the ICMA Ops FinTech mapping directory

The FinTech mapping spans the following categories:

  1. Collateral management (Lifecycle)
  2. Collateral management (Margin)
  3. Corporate actions
  4. Exposure agreement
  5. Intraday liquidity: monitoring and reporting
  6. KYC onboarding
  7. Matching, confirmation & allocation
  8. Reconciliation
  9. Static Data & Standard Settlement Instructions (SSI)
  10. Workflow & communication
Over the course of the mapping exercise, a growing number of technology solutions was identified across the aforementioned categories. Whilst the mapping directory covers over 80 technology solutions in total, it does not constitute an exhaustive list of providers in the market. It will be updated on a regular basis to include other existing or new solutions.



European Commission publishes final report of the Expert Group on Corporate Bond Markets 'Improving European Corporate Bond Markets'

20 November 2017 Today the European Commission published the final report of the Expert Group on Corporate Bond Markets, Improving European Corporate Bond Markets.
 
The Expert Group on Corporate Bond Markets (originally the Expert Group on Corporate Bond Market Liquidity) was created in late 2016, following concerns raised in the CMU Call for Evidence related to European corporate bond market efficiency and liquidity. The 17 Group members represent a cross section of industry stakeholders in the European corporate bond markets, covering the entire value chain (issuers, market-makers, investors, infrastructure providers, and trades associations). ICMA was pleased to represent its constituents as a member of the Group.
 
Following twelve months of analysis, the Group’s report provides 22 recommendations, both policy and market focused, intended to improve the functioning of the European corporate bond markets from the perspective of issuers, investors, and intermediaries. These recommendations support six key objectives:

  1. making issuance easier for companies;
  2. increasing access and options for investors;
  3. ensuring the efficiency of intermediation and trading activities;
  4. fostering the development of new forms of trading and improving the post-trade environment;
  5. ensuring an appropriate level of information and transparency; and
  6. improving the supervisory and policy framework.
The Expert Group has also published a second, more detailed analytical report, Analysis of European Corporate Bond Markets, which provides further background and support for the 22 recommendations.
 
The reports will officially be launched and discussed at a European Commission public hearing in Brussels on 24 November 2017.



ICMA ERCC responds to the European Commission’s post-trade consultation

15 November 2017 The ICMA ERCC has submitted a response to the European Commission’s consultation on “Post-trade in a Capital Market Union: dismantling barriers and strategy for the future”. The response focused on collateral and repo specific aspects of the consultation and was prepared based on feedback received from members of the ERCC Operations Group.

The consultation itself follows up on the conclusions and recommendations of the European Post-Trade Forum (EPTF) an expert group set up by the Commission in the context of the CMU project. The final EPTF report was published alongside the current consultation. ICMA has been an active member of the EPTF, represented by ICMA ERCC Chairman Godfried De Vidts.

View the full ICMA ERCC response to the online questionnaire

View the ICMA ERCC cover letter

The final EPTF Report is available here.



AMIC survey on FICC research unbundling

8 November 2017 ICMA’s Asset Management and Investors Council (AMIC) today issued a survey it conducted on the intentions of investors with regard to the unbundling of FICC research as a result of the new rules coming from MiFID II. The survey was conducted in the last two weeks of October 2017 among AMIC members and is presented now in an anonymised format.

The results show that a clear majority of firms expect to be compliant by the MiFID II implementation deadline of 3 January 2018, but only half of respondents have received guidance from their national regulator with regard to the rules. 67% of firms intend to pay for research from P&L, only 4% intend to use a research payment account (RPA), but 17% had not decided.

A majority of respondents will increase spend on FICC research, but reduce the number of providers. Independent research providers (IRPs) are set to see more demand for their products and services.

Finally, a majority of firms (61%) said they plan to unbundle their research consumption globally, showing the growing international effect these European rules will have.



New ICMA members in November 2017

The following firms were admitted to ICMA membership in November 2017.
  • Avior Capital Markets (Pty) Ltd., Sandton
  • GFI Securities Limited, London
  • Hauck & Aufhäuser Privatbankiers AG, Frankfurt
  • Narodowy Bank Polski, Warsaw
  • Orrick, Herrington & Sutcliffe (UK) LLP, London
  • Tesco Personal Finance Plc, Edinburgh
  • Union Bancaire Privée, UBP SA, Geneva
Bringing the total number of ICMA members to 533 members in 62 countries. Click here to view the full list of ICMA members.



Rapid growth of the green and social bond markets in Asia attracts market attention

2 November 2017
  • ICMA & JSDA conference brings together Asian & international stakeholders in Tokyo
  • Conference discusses strong progress & potential in green, social and sustainable financing
  • Event is over-subscribed
(Tokyo, Japan) The International Capital Market Association and the Japan Securities Dealers Association, have today co-hosted a conference in Tokyo focused on the rapidly growing green and social bond markets of Asia. Investors, underwriters, issuers, policy makers, service providers and other stakeholders met to discuss recent progress and the conditions required to stimulate future growth. The conference was over-subscribed, with 500+ registrations ahead of the event.

View press release



Frontclear study - Repo: OTC or exchange-traded?

Frontclear, whose purpose is to facilitate more participative interbank markets, has commissioned a study to assess whether an exchange is likely to be more effect than an over-the counter (OTC) market in fostering the development of domestic repo trading in emerging financial markets, particularly frontier markets. The study, carried out by Richard Comotto the author of ICMA’s European Repo Survey, considers the arguments in favour of and against trading fixed income repo in OTC markets and exchanges, and reviews the evidence from four repo exchanges, Costa Rica, Kazakhstan, South Africa and Vietnam, with complimentary case studies from China, the Philippines, South Korea and European markets.

Download the study



ECB announcement on the Asset Purchase Programme

27 October 2017 On 26 October 2017 the ECB’s Governing Council announced changes to its Asset Purchase Programme (APP). This was largely in line with consensus expectations of an extension of purchases, at a reduced rate, and with a shift in emphasis towards forward guidance. However, this is likely to have implications with respect to market efficiency and liquidity, impacting the sovereign, credit, covered bond, and repo markets, and so the core of ICMA’s work and focus.

The key changes to the APP are:
  • The APP is to be extended by 9 months to September 2018.
  • Rate of purchases to be reduced from €60bn to €30bn per month.
  • Programme to remain ‘open ended’, giving the GC room to increase the rate of purchases or to extend beyond Sep 2018, if they feel it necessary
  • Any rate rises will come ‘well after’ the programme ends (pointing well into 2019).
  • If the APP continues as scheduled, the ECB will hold around €2.5tn of assets by its conclusion this time next year: around a third of the Euro areas public debt.
  • No details were given with respect to the composition of the purchases, however additional information on the ECB website states: The Eurosystem anticipates that the purchase volumes under the three private sector purchase programmes (the ABSPP, the CBPP3 and the CSPP) will remain sizeable. This would suggest a relative shift from public to private assets, and, most likely, the emphasis being on the Corporate Sector Purchase Programme.
  • The ECB will also begin publishing monthly redemption amounts for the 4 APP components in anticipation of an increase in redemptions in 2018 (providing more transparency around its reinvestment schedule).
The APP, in particular the CSPP and PSPP components, will continue to have major impacts on ICMA’s focus areas, and the intersection of monetary policy and market regulation will remain a high priority of the ICMA Secondary Market Practices Committee (SMPC), European Repo and Collateral Council (ERCC), as well as other key fora and working groups, particularly to the extent that it affects market functioning and efficiency.

Contact: Andy Hill



Panda bonds - the foreign issuer perspective - new report from ICMA and NAFMII outlines progress made in making China’s domestic bond markets accessible to international issuers

19 October 2017 NAFMII and ICMA, have jointly published ‘The panda bond market and perspectives of foreign issuers’ detailing the views of foreign issuers on the attractiveness of China’s panda bond market. (A panda bond is a debt security issued in the domestic Chinese bond market by a foreign institution registered outside China.)

View the press release.
Download the English version of the report.
Download the Chinese version of the report.




Latest ICMA survey sets baseline size of the European repo market at EUR 6,455 billion - Suggests recovery in market volumes since December 2016

17 October 2017 The European Repo and Collateral Council of the International Capital Market Association (ICMA) has released the results of its 33rd semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 7 June 2017 from the returns of 64 offices of 60 financial groups, sets the floor for market size at EUR 6,455 billion.

View the press release
Download the 33rd ICMA ERCC European Repo Market Survey



ICMA responds to IOSCO’s consultation paper on Regulatory Reporting and Public Transparency in the Secondary Corporate Bond Markets

16 October 2017 ICMA’s members have used IOSCO’s consultation on regulatory reporting and public transparency in the secondary corporate bond markets to voice concerns about the imminent implementation of the MIFID II/R pre- and post-trade transparency regime. In particular, members are keen to stress that while market transparency, in principle, should be viewed as a public good, it should not be an end in itself. Ultimately, efficient and liquid markets are the most important considerations for investors, and the public availability of market and trading information is only desirable to the extent that it improves market efficiency and enhances protection for investors and issuers. With this in mind, policies and calibrations for market transparency should also be consistent with and supportive of political objectives to develop or expand deep and effective corporate bond markets as a primary source of financing for the real economy, such as the European Union’s Capital Markets Union (CMU) project.

View the full ICMA response



ICMA responds, jointly with the ASF, GFMA and IIF, re BCBS/IOSCO’s Consultative Documents on “Criteria for and capital treatment of simple, transparent and comparable short-term securitisations

5 October 2017 ICMA responded, jointly with the ASF, GFMA and IIF, to the BCBS/IOSCO’s Consultative Documents on criteria for and capital treatment of simple, transparent and comparable (STC) short-term securitisations.

Although the Associations support the Committee’s goal of “assisting the financial industry in its development of STC securitisation structures,” we believe that the mechanisms proposed by the Committee to achieve that goal go too far, risk making the process for obtaining preferential RBC treatment overly complicated, and ignore the strong credit performance over several decades of ABCP conduits (distinct from SIVs and “arbitrage conduits”) backed by “real economy” assets such as trade receivables, auto loans and leases, etc.

We respectfully suggest that our proposals, if adopted, would achieve the Committee’s goal of ensuring that ABCP transactions are structured prudently, justifying less capital, without creating unnecessary and impractical complication that would discourage compliance with the STC criteria and disrupt the operation of the ABCP market.



ICMA responds, jointly with the ASF, GFMA and IIF, re BCBS/IOSCO’s Consultative Documents on “Criteria for and capital treatment of simple, transparent and comparable short-term securitisations

5 October 2017 ICMA responded, jointly with the ASF, GFMA and IIF, to the BCBS/IOSCO’s Consultative Documents on criteria for and capital treatment of simple, transparent and comparable (STC) short-term securitisations.

Although the Associations support the Committee’s goal of “assisting the financial industry in its development of STC securitisation structures,” we believe that the mechanisms proposed by the Committee to achieve that goal go too far, risk making the process for obtaining preferential RBC treatment overly complicated, and ignore the strong credit performance over several decades of ABCP conduits (distinct from SIVs and “arbitrage conduits”) backed by “real economy” assets such as trade receivables, auto loans and leases, etc.

We respectfully suggest that our proposals, if adopted, would achieve the Committee’s goal of ensuring that ABCP transactions are structured prudently, justifying less capital, without creating unnecessary and impractical complication that would discourage compliance with the STC criteria and disrupt the operation of the ABCP market.



Results of the pilot survey of repo markets in Asia-Pacific are published

26 September 2017 (Hong Kong) ICMA’s European Repo and Collateral Council (ERCC) and ASIFMA’s Secured Funding Markets Committee have today released the results of a pilot survey of the Asia-Pacific repo market.

The Asia-Pacific survey uses similar methodology to the long-established ICMA ERCC European repo market survey, which reports the value of repos and reverse repos outstanding in the market at close of a chosen business day, in this case 7 December 2016.

Download the pilot survey of the Asia-Pacific repo market

View the press release



ICMA AMIC responds to IOSCO consultations on investment fund liquidity risk management

18 September 2017 AMIC responded to IOSCO’s consultations on (1) CIS Liquidity Risk Management Recommendations and (2) Report on Open-ended Fund Liquidity and Risk Management – Good Practices and Issues for Consideration.

AMIC broadly agrees with the suggested amendments to IOSCO’s 2013 liquidity risk management recommendations. However, AMIC suggests some amendments to the recommendations to bring them in line with current market practice. Furthermore, AMIC counsels caution on stress tests, which can be misleading particularly on a systemic level. AMIC also welcomes the report on best practices on fund liquidity risk management, which helpfully references AMIC’s joint report with EFAMA on liquidity risk management.

The responses can be found here:
(1) AMIC response to IOSCO Consultation on CIS Liquidity Risk Management Recommendations
(2) AMIC response to IOSCO Consultation Report on Open-ended Fund Liquidity and Risk Management – Good Practices and Issues for Consideration



Green Bond Principles publishes translations of its international guidelines

14 September 2017
  • This move highlights market internationalisation and strength of the GBP community
  • The Green Bond market is growing rapidly, supported by internationally accepted voluntary guidelines produced by the Green Bond Principles (GBP)
  • In response to demand and to facilitate global use of the standards key documentation is being published in 20 languages
Issuance in the green bond market now stands at over $72billion for the year to date, and on target to significantly exceed the previous record of $81billion for the whole of 2016 (Source: Climate Bonds Initiative). The diversity of issuers is expanding rapidly globally and across issuer types, encompassing financial institutions, supranational and corporate issuers, as well as recent landmark inaugural sovereign issues from France and Poland. The geographic spread of issuers has also increased in both developed and emerging markets, in all continents. The common thread remains the reliance on the GBP.

View the press release



New ICMA members in August 2017
  • Addleshaw Goddard LLP, London
  • Asian Development Bank (ADB), Metro Manila
  • Bangko Sentral ng Pilipinas, Manila
  • Larrain Vial S.A. Corredora de Bolsa, Santiago
  • Nederlandse Financierings-maatschappij voor Ontwikkelingslanden N.V. (FMO), The Hague
  • Otkritie Broker Joint Stock Company, Moscow
  • TD Securities (USA) LLC, New York
  • UniCredit International Bank (Luxembourg) S.A., Luxembourg
Bringing the total number of ICMA members to 527 members in 62 countries. Click here to view the full list of ICMA members.



MiFID II/R implementation update August 2017

We are now sending out monthly updates on the practical implementation of MiFID II/R relating to primary markets, secondary markets, repo and collateral markets, and research unbundling for asset management.

MiFID II/R implementation update August 2017




High-level data on European investment grade bond markets from multiple sources on ICMA website

ICMA has made available high-level data from a number of suppliers on its website with the intention of providing an overview of European secondary investment grade corporate bond markets to complement its own studies.

From a single point, ICMA members (and other interested market observers) can access historical bond market trading activity, split into Financials and Non-Financials in both € and £, including:
  • Bond trading activity based on executed trades and expressed as “market volume” in EUR and GBP investment grade corporate bonds including the top 10 traded provided by ICE Data Services
  • Evolution of iBoxx and iTraxx indices (IHS Markit), representing investment grade fixed-income bonds issued by public or private corporations and a family of European, Asian and Emerging Market tradable credit default swap (CDS) indices respectively
  • Inflows and outflows from corporate bond ETFs (Ultumus) domiciled in Europe
The data will be updated every month.



ICMA AMIC responds to Central Bank of Ireland consultation on ETFs

15 August 2017 ICMA's AMIC has submitted a response to the Central Bank of Ireland’s Discussion Paper on Exchange Traded Funds (ETFs). AMIC has long taken an interest in the development of ETFs. AMIC has long taken an interest in the development of ETFs. In 2011 AMIC published a short general paper on ETFs with a description of different types of ETFs, the state of the ETF market, assessments of market trends in ETF development and usage, the future development of the ETF market and the value of the ETF brand. More recently, AMIC’s interest in ETFs is limited to their relevance to the debate on systemic risk. We have already been active in the global debate on the possible systemic risk related to asset managers.

The AMIC response on ETFs addresses certain topics in the consultation, in particular potential systemic risks in ETFs and the impact of ETFs on corporate bond liquidity.

To view the response, click here.



AMIC & EFAMA publish report on leverage in investment funds

19 July 2017  ICMA's Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published today a report on leverage in investment funds. This paper analyses how leverage is used, how the European legislative framework regulates leverage, how international regulators are addressing this topic and how the risks related to leverage are addressed from a technical perspective.

The report also puts forward a number of recommendations to improve monitoring and analysis of leverage risk:
  1. The existing regulatory standards at the EU level can be the basis for developing, at global level, leverage and risk measurements through a matrix of different measures. This would allow a meaningful representation of a fund’s exposures, given that there is no single measure that can capture all the risks in nature, size and characteristics associated with a fund’s underlying assets and strategies;
  2. Further streamlining of global calculation methodologies for leverage and risk. Regulators should in that respect rely upon the existing EU regulatory regime;
  3. Adjustments and updates of these methods, particularly the 2010 CESR Guidelines, based on the best practices at EU level, could be envisaged if necessary; and
  4. Data sharing among regulators of already reported data is key and should be improved at both EU and global level. This would enable regulators to better assess the overall risks related to funds in Europe and globally.
The report is available here and the press release is available here.



ICMA & AFME publish review of the state of infrastructure financing in Europe

13 July 2017 ICMA and AFME have produced a review of the state of infrastructure financing, investment and related initiatives in Europe, and an assessment of how to further advance and encourage private sector finance for infrastructure projects. The review was undertaken as a follow up to the ‘AFME-ICMA Guide to Infrastructure Financing’ published by the two associations in June 2015. Read more.



ICMA Future Leaders launches Get Involved! A guide for young professionals in the international capital market.

4 July 2017 We want you to get the maximum value from your firm's membership of the International Capital Market Association (ICMA). Get Involved! is a quick guide to what ICMA does and how it works with its members.



Join the new ICMA Mentoring Platform – connecting ICMA members for personal and career growth in capital markets

27 June 2017 The ICMA Mentoring Platform has been launched to help individuals at member firms develop their skills by matching those looking for a career mentor with suitable mentors in the international capital market.

The new ICMA Mentoring Platform is built on mentoring and e-learning tools, that not only to help match mentors with mentees, but also support them with a wide range of learning and development resources that are accessible from your smartphone, tablet, laptop or desktop computer.

The ICMA Mentoring Platform is however only available to staff of ICMA member firms.



ICMA publishes study into the state and evolution of the European credit repo market

22 June 2017 ICMA publishes The European Credit Repo Market: The cornerstone of corporate bond market liquidity which explores and describes the state and evolution of the European corporate bond repo and securities lending market (the ‘credit repo market’). The study builds on ICMA’s previous work with respect to both corporate bond market and repo market evolution and liquidity, and investigates the European credit repo market from the perspective of its role, structure, participants, dynamics, external impacts, challenges, opportunities, and potential evolution, particularly to the extent that this plays a pivotal role in overall corporate bond market liquidity.



Green Bond Principles evolve to encourage new categories of issuers and embrace Social & Sustainability Bond market participants

14 June 2017 Press release: Green Bond Principles evolve to encourage new categories of issuers and embrace Social & Sustainability Bond market participants



ICMA ERCC launches bilateral SFTR reconciliation exercise

2 June 2017 In view of the upcoming implementation of extensive reporting requirements under the EU SFT Regulation, the ICMA ERCC has launched a bilateral reconciliation exercise for repo and buy/sell-back trades. All ERCC members are strongly encouraged to reach out to their major counterparties to test SFTR reconciliation, based on the standard document published by ICMA. Members are requested to conclude the testing by 28 July and to share the results with the ERCC Secretariat as a basis for further industry work to facilitate implementation.
 
Download instructions and template for the bilateral reconciliation exercise.



New ICMA members in May 2017

The following firms were admitted to ICMA membership in May 2017.
  • Banco BPM S.p.A., Milan
  • Doha Bank, Doha
  • EFG Bank AG, Zurich
  • National Bank of Fujairah PJSC, Dubai
  • Oppenheimer & Co, Inc., New York
  • Santander UK plc, London
  • China Lianhe Credit Rating Co. Ltd., Beijing
Bringing the total number of ICMA members to 521 members in 61 countries. Click here to view the full list of ICMA members.



Professional training programmes for today's international financial markets – an update from ICMA Executive Education

17 May 2017 To read the update please click here. To view the video update, please click here.



ICMA response to the Commission’s consultation on the operations of the ESAs

15 May 2017 ICMA responds to the European Commission’s public consultation on the operation of the three European Supervisory Authorities (ESAs).



ICMA publishes a Position Paper on CSDR Settlement Discipline

15 May 2017 ICMA publishes a Position Paper on CSDR Settlement Discipline. The paper was prepared in close consultation with the SMPC CSDR/Buy-in  Working Group, as well as with the SMPC, ERCC, and AMIC. Essentially, ICMA proposes that the cash penalties for bonds should be increased when implemented in 2019, while mandatory buy-ins should not be implemented.

ICMA’s position can be summarized as:
  • ICMA broadly supports the proposed cash penalty mechanism for settlement fails, although it argues that an appropriate calibration of the penalty rates is an essential consideration in its design.
  • ICMA retains its firm opposition to the mandatory buy-in regime, which it argues is fundamentally flawed and will be detrimental to bond market stability and liquidity.
  • ICMA proposes that the cash penalty regime be implemented as scheduled, with a higher than proposed penalty rate for bonds. However, the mandatory buy-in regime should not be implemented as scheduled.
  • The proposed penalty rate for ALL bonds (except SME debt instruments) should be the equivalent of 2.50% annualized.
  • The mandatory buy-in regime should only be implemented as a ‘last resort’ following an assessment of the impact of the penalty mechanism, and other initiatives, on bond market settlement efficiency rates.
The Position Paper can be downloaded here.



ICMA Bail-in Working Group held a seminar on 7 April 2017

12 May 2017 Bringing together various members of the Bail-In Working Group, regulators, issuers and other market participants, the ICMA Bail-in Working Group held a seminar on 7 April 2017 to examine several aspects of the key area of banking regulatory reform - the bail-in regime and capital requirements for banks. Convened under Chatham House rules, the seminar discussed three broad topics: an examination of pricing of bank debt in the current environment; a look at disclosure and credit evaluation of banks; and a debate on corporate governance for banks with a specific look at whether fixed income investors are getting a fair deal.

A summary of the seminar is available to view here.



ICMA response to the FSB consultation on Framework for G20 Reform Evaluation

11 May 2017 ICMA response to FSB’s consultation on the main elements of a ‘Proposed Framework for Post-Implementation Evaluation of the Effects of the G20 Financial Regulatory Reforms’.



MiFID II/R Post-trade transparency: trade reporting deferral regimes. An ICMA Position Paper - May 2017

11 May 2017 This paper sets out the formal position of the International Capital Market Association (ICMA) with respect to the trade reporting deferral regime under MiFID II/R for fixed income securities.



New ICMA Chairman appointed

4 May 2017 Read the press release.



ICMA meets in Luxembourg to discuss forces shaping the cross-border capital markets

2 May 2017
Read the press release.



UK Money Markets Code

26 April 2017 New UK Money Markets Code posted by the Bank of England. Click here to view.



The euro repo market at March 2017 quarter-end

20 April 2017 The ICMA ERCC has published a briefing note on the behaviour of the euro repo market at the end of March 2017, which updates its note on unprecedented price dislocations experienced in the European repo market over the 2016 year-end.  



ICMA publishes 2017 GMRA Legal Opinions

12 April 2017 ICMA is pleased to announce publication of the 2017 ICMA GMRA Legal Opinions.
 
Please see ICMA circular No. 3 of April 12, 2017  for further information.



ICMA is pleased to announce publication of the 2017 ICMA GMRA Legal Opinions

12 April 2017
Please see ICMA circular No. 3 of April 12, 2017 for further information (members only).



ICMA is pleased to welcome the following new members March 2017:
  • China Chengxin International Credit Rating Co., Ltd.
  • Hermes Investment Management Ltd
  • Kuwait Clearing Company
  • Magyar Nemzeti Bank (The Central Bank of Hungary)
  • Moody's Investors Service Hong Kong Limited
  • Reuss Private AG
  • T. Rowe Price International Ltd
  • Taylor Wessing LLP
  • Zhong Lun Law Firm
ICMA has now 518 members in 60 countries. Click here to view the full list of ICMA members.



GDP-linked sovereign bonds


14 March 2017 The latest term sheet for GDP-linked sovereign bonds and additional information on their design and investor reaction have been published and are available from our website.



ICMA response to the European Commission consultation on Capital Markets Union Mid-Term Review


12 March 2017
ICMA responded to the commission consultation on capital markets union mid-term review. To view the response, click here.



ICMA now has 509 members in 60 countries

7 March 2017 Click here to view the full list of ICMA members.



ICMA announces an update of its Buy-in Rules

1 March 2017 In response to requests from ICMA’s members, ICMA’s Secondary Market Practices Committee (SMPC) proposed a review of the Buy-in and Sell-out Procedures with a view to improving their efficiency and practicability, particularly in light of more challenging market conditions. Following a lengthy consultation process with member firms, the ICMA executive committee, in close consultation and agreement with the SMPC, unanimously resolved to amend the Buy-in and Sell-out Procedures.

Most significantly, the revised rules remove the requirement to appoint a buy-in (or sell-out) agent, and provide for the party initiating a buy-in/sell-out to execute the procedure themselves (subject to certain limitations). The new rules also allow for greater flexibility for the initiating party in determining the timing of the execution of the buy-in/sell-out.  

The changes to the rules come into effect from April 3 2017.

The circular announcing and outlining the changes can be found here.



Results of 2017 ICMA ERCC Committee elections

20 February 2017
The governing board of ICMA’s European Repo and Collateral Council (ERCC) is the ICMA ERCC Committee consisting of 19 individuals drawn from council member firms and elected annually by ICMA’s ERCC. The election period for the 2017 ICMA ERCC elections closed on Friday 17 February 2017. The names of the 2017 – 2018 ICMA ERCC Committee can be found here.



Best practice in the European repo market

14 February 2017 A newly revised version of the ICMA ERCC Guide to Best Practice in the European Repo Market has been made available for use by the market as from 8 February.  Whilst tidying up many minor details, this latest version of the Guide also introduces many elements of new, extended and refined best practice guidance.  Perhaps most significantly, this latest version includes best practice updates in relation to negative repo rates; confirmation and affirmation; and margining.



The euro repo market at year-end 2016

14 February 2017 A detailed Study of conditions in the euro repo market at year-end shows volatility and market dislocation.



Latest ICMA survey sets baseline size of the European repo market at EUR 5,656 billion

14 February 2017 The ICMA ERCC has released the results of its 32nd semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 7 December 2016 from the returns of 65 offices of 62 financial groups, sets the baseline figure for market size at EUR 5,656 billion.



ICMA is pleased to welcome the following new members in February 2017:
  • BRD Groupe Societe Generale SA, Romania
  • CACEIS Bank, Luxembourg
  • China International Capital Corporation Hong Kong Securities Limited, Hong Kong
  • Citibank Korea Inc., Republic of Korea
  • Citibank Taiwan Limited, China
  • Kommunalkredit Austria AG, Austria
  • CMS Bureau Francis Lefebvre, France
ICMA has now 510 members in 59 countries (new: Republic of Korea/South Korea). Click here to view the full list of ICMA members.



Stéphane Janin, AXA IM, and Axel van Nederveen, EBRD, to be new vice-chairs of the Executive Committee for ICMA’s Asset Management and Investors Council
 
30 January 2017 Stéphane Janin, AXA IM, and Axel van Nederveen, EBRD, to be new vice-chairs of the Executive Committee for  ICMA’s Asset Management and Investors Council. Click here to read.



ICMA response to FMSB’s Transparency Draft New Issue Process standard for the Fixed Income markets

17 January 2017 ICMA responds to FMSB’s Transparency Draft New Issue Process standard for the Fixed Income markets. Click here to read.



ICMA is pleased to welcome the following new members in January 2017

Boursa Kuwait Securities Company /Kuwaiti. Public.Shareholding. Company), Kuwait
Groupama Asset Management, France

With that, ICMA has now 509 members in 58 countries. Click here to view the full list of ICMA members.


ICMA Bail-in Working Group’s latest discussion letter to the ECB

20 December 2016
Click here to see the ICMA Bail-in Working Group’s latest discussion letter to the ECB. The letter sets out thoughts on two issues: (1) assessing and pricing bank credit risk and (2) governance and the rights of noteholders, in each case from the buy-side point of view, and which will be explored further in 2017.



Results of the consultation on the ICMA Buy-in Rules

30 November 2016
  ICMA published the results of the consultation on its Buy-in Rules, along with discussion points and proposed drafting amendments to the Rules.
The results and proposals can be found here.

A member call was held on December 2nd 2016 to discuss the proposed amendments to the Rules. A note of the call can be found here.



ICMA ERCC responds to ESMA’s consultation paper on SFTR

30 November 2016
  The ICMA ERCC has submitted a detailed response to ESMA’s consultation paper on Draft Regulatory and Implementing Technical Standards under the EU SFT Regulation. This is the second and final consultation on SFTR technical standards, following up on an ESMA discussion paper issued earlier this year to which the ICMA ERCC responded in April 2016. Alongside the response the ERCC submitted some specific comments on the list of proposed reporting fields.  

To view the response, click here.
To view the specific comments on the reporting fields, click here.



8th UK-China Economic and Financial Dialogue – Policy Outcomes

The UK’s Chancellor of the Exchequer Phillip Hammond and Chinese Vice Premier Ma Kai concluded the eighth UK-China Economic and Financial Dialogue on 10 November 2016, in London. The Policy outcomes which include mentions of ICMA’s work on Panda Bonds and Green Finance have been published here.



Review: ICMA Asset Management and Investors Council (AMIC) Conference

7 November 2016
  The AMIC meeting in November included expert views from the cross-border asset management industry on Brexit and the practical implications for capital markets; liquidity in secondary bond markets and coping in a negative interest rate environment. To read the AMIC Review click here.



Launch of Green Bond Principles Resource Centre providing transparency in a standardised and simplified form for the Green Bond market

2 November 2016
The online GBP Resource Centre is now operational and contains standardised disclosure templates on green bonds from issuers and external reviewers, as well as other relevant market resources. To read the Press release click here.



Updated guide to best practice for EU corporate debt private placement market launched in Brussels

25 October 2016
(Brussels, Belgium)  A European Corporate Debt Private Placement (ECPP) Joint Committee coordinated by the International Capital Market Association (ICMA) has launched an updated version of the European Corporate Debt Private Placement Market Guide.

To access the guide, click here.



AMIC responds to European Commission consultation on the review of the EU macro-prudential policy framework

24 October 2016  ICMA's AMIC has submitted its response to the European Commission's consultation paper on whether the existing EU macro-prudential framework is functioning optimally. AMIC raised concern about expanding the mandate and powers of the European Systemic Risk Board (ESRB) to non-banking under the current governance framework of the ESRB. AMIC recommends much greater integration of securities markets supervisory expertise in the macro-prudential policy framework. AMIC also suggests that already reported data is better used to understand financial markets from a holistic perspective.



ICMA Quarterly Report Fourth Quarter 2016

12 October 2016
The latest edition of the ICMA quarterly report is now available.

To access the report, click here.



ICMA joins industry effort to highlight importance of securitisation

10 October 2016 
ICMA has joined seven other leading European trade associations representing investors, originators, issuers and other market participants in signing a paper highlighting the importance of securitisation for jobs and growth in Europe, and underlining their commitment to supporting a safe and sustainable market that serves the real economy. ICMA, led by an investor working group run by the Asset Management and Investors Council (AMIC), joins the Association for Financial Markets in Europe (AFME), the Dutch Securitisation Association (DSA), Eurofinas, the European Banking Federation (EBF), the European Fund and Asset Management Association (EFAMA), Leaseurope and Pensions Europe in signing the paper and make the following key points:
  • Securitisation can support SMEs and households in many different ways;
  • A revival of sound securitisation can help diversify risks, thereby making the financial system more stable;
  • A well-designed STS framework will deliver “simple”, “transparent” and “standardised” securitisations;
  • Transparency and disclosure standards are already robust– further requirements should build on existing infrastructure and be carefully calibrated;
  • The lessons of the crisis have been learned and reflected in EU regulations;
  • Investor due diligence is important, but unnecessary duplication should be avoided as it disincentivises investment;
  • Risk retention is important: the existing rules ensure alignment of interests and sufficient “skin in the game” for those who securitise;
  • Tranching is common across all debt markets and is an essential feature of the securitisation technique to meet investors’ needs.
To view the document, click here.



GDP-Linked Bonds: A New Design for Sovereign Debt Markets

3 October 2016
ICMA is conducting a consultation on the new London Term Sheet with interested members of ICMA’s Asset Management and Investors Council (AMIC). 

For more information, click here.



ICMA submits response to the IOSCO Consultation Report: Examination of Liquidity of the Secondary Corporate Bond Markets

30 September 2016
ICMA was pleased to submit its response to the IOSCO Consultation Report: Examination of Liquidity of the Secondary Corporate Bond Markets.

ICMA very much welcomes IOSCO’s interest in the functioning and liquidity of the corporate bond markets and the resulting Consultation Report, as well as the opportunity to provide suggestions and data to assist IOSCO in further refining its analysis. While the general conclusions of ICMA’s analysis of the European corporate bond market and IOSCO’s more global perspective may differ in a number of respects, based on its own work, ICMA fully appreciates the challenges of sourcing comprehensive and meaningful data, as well as identifying and assessing the relevant indicators and metrics.  

ICMA was therefore pleased to provide, in consultation with the members of its Secondary Market Practices Committee, a number of constructive and targeted recommendations designed to expand and enrich IOSCO’s analysis.

The response can be found here.



Latest ICMA survey sets baseline size of the European repo market at EUR 5,379 billion

29 September 2016 (London, UK) The European Repo and Collateral Council of the International Capital Market Association (ICMA) has released the results of its 31st semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 8 June 2016 (prior to the Brexit vote in the UK) from the returns of 67 offices of 63 financial groups, mainly banks, sets the baseline figure for market size at EUR 5,379 billion, a 4.1% decrease on the December 2015 figure of EUR 5,608 billion and a year on year decrease of 1.6% from the survey in June 2015.

To view the press release, click here.
To download the survey report, click here.



ICMA ERCC report published on the trade registration models used by European CCPs for repo transactions

The ICMA European Repo and Collateral Council has sponsored a short study, authored by John Burke, on the trade registration models used by European central counterparties (CCPs) for repo transactions.  This focuses on a specific issue (“the counterparty gap”) that emerged from a broader analysis of CCPs’ trade registration models.  The issue relates to risk borne by market participants arising from different trade registration models and the different timings and procedures used by the CCPs to manage trade acceptance and trade rejection scenarios.  The analysis covers trades that are executed via automated trading systems, traded bilaterally or executed on a name give-up basis via voice brokers.

The study contains recommendations from the ICMA ERCC on a number of changes to market best practice that, when adopted, could reduce the risk to market participants arising from the counterparty gap issue.  By working together now to clarify the position regarding the counterparty gap issue, market participants and infrastructure providers will achieve an enhanced operating and risk management environment for CCP cleared business and ensure that any future increase in CCP activity e.g. for Dealer to Client trades, can be managed more comfortably.

Click here to view the report

Published September 2016



ICMA ERCC responds to ESMA Call for Evidence on Asset Segregation and Custody Services

23 September 2016
ICMA ERCC submitted its formal response to the ESMA Call for Evidence on Asset Segregation and Custody Services. The ICMA ERCC’s response flags the importance of repo and collateral markets; and highlights that these already face significant stress which is bearing on the liquidity of the market. It then observes that there is a risk to make this worse with the asset segregation requirements and expresses full support for ISLA’s more detailed response to this Call for Evidence.

To view this ERCC response, click here.



ICMA AMIC responds to FSB consultation on proposed policy recommendations to address structural vulnerabilities for asset management activities

ICMA’s AMIC has submitted its response to the Financial Stability Board’s (FSB) consultation paper on proposed policy recommendations to address structural vulnerabilities for asset management activities.

AMIC welcomed the FSB’s focus on activities instead of designating individual companies as systemically risky. However, AMIC cautions against returning to the designation debate. AMIC also encourages the FSB to consider a wider group of market participants than simply asset managers when assessing risk and formulating policy recommendations. AMIC also notes that any effort to harmonise leverage calculation should not impact the existing methods to calculate fund leverage established through European legislation.

To view the document, click here.



Bank of England publishes Press Notice on the eligibility and sectors under the Corporate Bond Purchase Scheme

12 September 2016 The Bank of England published a press notice providing further details on the eligibility and sectors under the Corporate Bond Purchase Scheme. The notice can be downloaded here.

This expands on the Market Notice published on 4 August 2016, and available here.



Green Bond Principles win GlobalCapital award for Most Valuable Innovation for the Green Bond/SRI Market

ICMA was very pleased to accept an award for the GBP at the GlobalCapital Sustainable and Responsible Capital Markets Forum in Amsterdam.

For more information on ICMA's work on green bonds, click here.

For a full list of of award winners, click here.

Nicholas Pfaff of ICMA accepts the award on behalf of Green Bond Principles




ICMA AMIC Bail-in Working Group sends discussion letter to ECB

7 September 2016
The ICMA AMIC Bail-in Working Group has sent a discussion letter to the ECB. The letter highlights observations on the operation of the bail-in regime, from the buy-side point of view, and builds upon, and reflects evolutions in thinking since, a letter sent to the ECB on 31 July 2015, also on the bail-in mechanism.

To view the discussion letter, click here.



ICMA launches a consultation on the Buy-in Rules

5 September 2016
Today, ICMA is launching 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.
 
The key areas for possible enhancement include:
  • The requirement (or not) to appoint a buy-in agent
  • Flexibility in the timing of the buy-in
  • The potential for buy-in auctions
More information is available in the linked background paper.
 
The period for the consultation is 5 September 2016 through 14 October 2016.
 
To complete the consultation and submit your response, please use the below link. Note that there are 14 questions in total (also allowing for additional comments), although it is not mandatory to respond to all of these.
 
https://www.surveymonkey.co.uk/r/ICMAbuyinrules
 
Please ensure that this consultation request is shared with the appropriate people within your firm (in most cases this will be the relevant fixed income trading desks). It is possible for firms to submit multiple responses. All responses will be treated in confidence, and will not be shared unless in aggregated and anonymized form.
 
CSDR-Mandatory Buy-ins

ICMA is aware that CSDR, which was passed into law in August 2014, introduces a harmonized buy-in regime across the EU, and that this is expected to come into force by early 2019. Once implemented, this is expected to supersede the ICMA Buy-in Rules in the case of trades that are in scope of the EU regulation. Meanwhile, it is important that the ICMA Buy-in Rules continue to serve as an efficient and practical remedy available to participants in the cross-border bond markets in the event of settlement fails.

If you have any questions related to the consultation, please contact Andy Hill at ICMA. The anonymized and aggregated results of the survey will be shared with the membership in October 2016, giving members the opportunity to provide further comments ahead of any proposed changes being put to the SMPC in November 2016.



ASIFMA and ICMA release guide to infrastructure financing in Asia

31 August 2016
ASIFMA and ICMA have released 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.

To view the press release, click here.
To view the guide, click here.



ICMA is pleased to welcome the following new members in August 2016:

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

ICMA now has 517 members in approximately 60 countries. Click here to view the full list of ICMA members.



ICMA Quarterly Report Third Quarter 2016

12 July 2016
The latest edition of the ICMA quarterly report is now available.

To access the report, click here.



ICMA ERCC responds to BCBS consultation on the leverage ratio framework

6 July 2016
The ICMA 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.

To view the response, click here.



Liquidity in the secondary European corporate bond market. ICMA publishes second study on state and future evolution of the European corporate bond market

6 July 2016
The International Capital Market Association (ICMA) has today published a study entitled ‘Remaking the corporate bond market’ exploring the evolution of the European investment grade corporate bond market and updating an earlier study published in 2014.

To view the press release, click here.
To view the report, click here.



Implications for ICMA members of the UK vote to leave the EU

For nearly 50 years, ICMA has represented the international capital markets and encouraged international capital market integration.

ICMA is an international body headquartered in Switzerland with more than 500 members based in nearly 60 different countries. As such, it is not aligned to any specific financial centre, and does not favour one over another.

Following the UK vote on 23 June to leave the EU, ICMA will work actively with all its members, large and small, sell side and buy side, through its Market Practice and Regulatory Policy Committees, Regional Committees and other Working Groups, as appropriate, to help them prepare for the international capital market implications of Brexit. ICMA’s mission continues to be the promotion of resilient and well-functioning international capital markets.

ICMA provides standard market documentation and guidance on market practices, which are widely adopted in many areas of the international capital markets. They may potentially need adjustment as the details of the UK’s withdrawal from the EU become clearer. ICMA will continue to review its standard market documentation and guidance in the light of future developments and will ensure they are amended as and when needed in consultation with our members.

As the markets adapt to the UK withdrawal from the EU, ICMA will continue to work with 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.

ICMA will keep its members up to date with its assessment of relevant new developments: for example, through conference calls, round tables and other events, the ICMA Quarterly Report and the ICMA website. The ICMA Helpdesk and ICMA’s staff are available to answer members’ questions.

ICMA has posted on its website a working document on Brexit: Implications for Capital Market Regulation dated 24 June 2016.

ICMA will be holding a teleconference for ICMA members at 12.00 London time on Tuesday, 28 June on the capital market implications of the UK vote to leave the EU.



ICMA ERCC responds to Commission consultation on NSFR

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.

To view the response, click here.



2016 update of the Green Bond Principles creates online resource for voluntary issuer information on Green Bond alignment and introduces guidance for issuers of Social Bonds

The 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.

To view the press release click here.
To view the Green Bond Principles, click here.



Participate in the ICMA European Repo and Collateral Council's 31st European repo market survey

All European repo market participants are invited to submit data on their repo business outstanding at close of business on Wednesday, 8 June 2016.



ICMA membership at 508 in 58 countries, a 15 year high

ICMA is pleased to welcome the following new members in June 2016:

A&L Goodbody, Dublin
Banco Finantia SA, Lisbon
BPCE, Paris
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
Mirova, Paris
Murex S.A.S., Paris
TD Bank N.V., Amsterdam

Click here to view the full list of ICMA members.



CBIC responds to Review of the Covered Bond Label Harmonised Transparency Template - 2016

23 May 2016
In the absence thus far of enhanced rules on mandatory pool disclosure on a Europe wide basis from the European Commission, industry led initiatives are essential to the continued good operation and standing of the covered bond market. The ICMA AMIC Covered Bond Investor Council welcomes the fact that the Harmonised Transparency Template (HTT) is to be reviewed and enhanced on a regular basis and are taking the opportunity of this review to comment on its effective implementation to date and to provide comments from members on possible features to consider as part of the review process.
 
The CBIC response is based on the information available on the Covered Bond Label website as well as issuers’ website. In addition, we reviewed the various responses the CBIC has written over the years regarding enhancing transparency in the covered bond market.

To view the response, click here.



ICMA publishes further thoughts on the ECB’s CSPP following the announcement of details of the Programme on 21 April

29 April 2016
ICMA has today 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.

To view the briefing note, click here.



ICMA ERCC responds to ESMA consultation on SFTR

22 April 2016
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.

To view the response, click here.



ICMA publishes briefing note on ECB Corporate Sector Purchase Programme

21 April 2016
The announcement by the ECB on March 10 to extend its Asset Purchases Programme to include investment grade non-bank corporate bonds took the market by complete surprise. This briefing note is an attempt to outline the various considerations that the ECB may need to review as it puts together the final details of its soon to be launched Corporate Sector Purchase Programme, as well as the possible implications for market liquidity and investor and issuer behaviour.

To view the briefing note, click here.



Harriett Baldwin, Economic Secretary of UK Treasury to speak at Shanghai Free Trade Zone Bond Seminar in London on 26 April

Harriett Baldwin, Economic Secretary of UK Treasury will be giving a keynote speech on Offshore RMB market development and Offshore RMB Pricing at the Shanghai Free Trade Zone Bond Seminar in London on 26 April. There are still a few places available for those who have not yet registered.

For more information and to register, click here.



ICMA report shows innovative technologies and new market entrants shaping the electronic bond trading landscape in Europe

20 April 2016
(London, UK) A new report, from the International Capital Market Association, shows that the way bonds are traded in Europe is undergoing a period of intense, evolutionary change in response to pressure from regulation and Fintech developments. The report identifies new strategies that are emerging for both buy and sell side participants trading in this market and the options available to platforms and technology providers in the new environment.

To view the press release, click here.
To view the report, click here.



ICMA ERCC responds to the FSB consultation on Collateral Re-use Measures

18 April 2016
The ICMA ERCC has submitted its response to the FSB's consultative proposals on Possible Measures of Non-Cash Collateral Re-use.

To view the response, click here.



New fund liquidity report from EFAMA and ICMA outlines tools available to manage liquidity risk

The International Capital Market Association’s (ICMA) Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published today a report on the legislative requirements and market-based tools available to manage liquidity risk in investment funds in Europe. The report also offers some recommendations to further improve the general liquidity management environment.

To view the press release, click here.
To view the report, click here.
To view an executive summary, click here.



Five Industry Associations Publish SFTR Information Statement

13 April 2016
(London) The Association for Financial Markets in Europe (AFME), FIA, the International Capital Market Association (ICMA), the International Swaps and Derivatives Association, Inc. (ISDA) and the International Securities Lending Association (ISLA) have 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).

To view the press release, click here.
To view the information statement, click here.



ICMA publishes the 2016 legal opinions for the Global Master Repurchase Agreement

12 April 2016
ICMA has today published the 2016 legal opinions which support the Global Master Repurchase Agreement (GMRA), the standard agreement used for international repo transactions. The 2016 opinions support the use of the GMRA in over 65 jurisdictions worldwide.

Find out more here.



ICMA ERCC Operations Group responds to the Eurosystem consultation on RTGS services

4 April 2016
The ICMA ERCC Operations Group has 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 platforms and is the first consultation launched in the context of the Eurosystem’s broader initiative to develop a Vision for the future of Europe’s financial market infrastructure.

To view the response, click here.



ICMA is pleased to welcome the following new members in March 2016:

Credit Suisse (Luxembourg) S.A., Luxembourg
RBC Investor Services Bank S.A., Luxembourg
«REGION Broker Company» LLC, Moscow
RHB Bank Berhad, Kuala Lumpar
Squire Patton Boggs (UK) LLP, London
Swiss National Bank (SNB), Zurich

ICMA now has 496 members in approximately 60 countries. Click here to view the full list of ICMA members.



ICMA launches its 2nd European IG Corporate Bond Secondary Market Study

Following the seminal study published in 2014, ICMA is pleased to announce the launch of its 2nd study into the current state and ongoing evolution of the European investment grade corporate bond secondary market. The new study is intended to be more forward looking and focused on potential solutions to the identified risks to market quality and liquidity, as well as re-highlighting the sources of these risks. We intend to complete the study over the coming months, with a view to publishing the final report at the end of June.
 
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. Over the coming weeks we will reach out with surveys and/or requests to interview (on an anonymized basis). If you or your firm is happy to participate in the study, we would be delighted to hear from you.
 
We are pleased to attach the Terms of Reference for the study, which was drafted with input and guidance from both sell-side and buy-side members of the Secondary Market Practices Committee (SPMC). If you would like to play an active role in steering the study during the research and writing stages, please do not hesitate to contact us directly.
 
We would like to thank you in advance for your generous cooperation and participation, as it is this that makes the ICMA study truly representative of the state and evolution of the European IG corporate bond market.

Note that an ICMA Asian corporate bond secondary market study will be conducted in parallel. This will be led by Mushtaq Kapasi (Chief Representative, ICMA Asia Pacific), in close coordination with Andy Hill, and will be based on the same approach. The intention is to publish both studies on the same date.

Click here to view the terms of reference for this study.

Click here to see the 2014 study 'The current state and future evolution of the European investment grade corporate bond secondary market: perspectives from the market'.



ICMA publishes ‘Q&A’ briefing note on the regulatory technical standards of MAR

21 March 2016
ICMA has published a ‘Q&A’ briefing note on the regulatory technical standards of MAR with respect to the presentation of investment recommendations and associated disclosure obligations.

It is likely that this will have far-reaching implications for investment firms and their employees for the way in which investment recommendations are presented to their clients, as well as how they are recorded and subsequently made available for clients. In turn, this could have an impact on the frequency and form of investment recommendations provided to buy-side firms.

The regulation is projected to come into force on 3 July 2016.

To view the briefing note, click here.



ICMA briefing note on ECB Corporate Sector Purchase Programme

ICMA has today published a briefing note on how ICMA intends to respond to the Corporate Sector Purchase Programme, and to work with its members, across committees and the regions, to help ensure that the CSPP achieves its objective without compromising resilient and well-functioning European corporate bond markets.

To view the briefing note, click here.



Buy and sell side join forces in support of STS securitisation

3 March 2016
Today four leading European trade associations representing investors, issuers and other market participants have come together for the first time to support the new framework for securitisation regulation. AFME, EFAMA, ICMA and Insurance Europe have issued a joint paper backing efforts by EU policymakers to develop a robust and successful framework for simple, transparent and standardised (STS) securitisation.

To view the press release, click here.



Presentation for the ICMA Aged-Fails Auction Initiative

23 February 2016
ICMA has today published a presentation for its Aged-Fails Auction Initiative.

For more information, click here.



Results of 2016 ICMA ERCC Committee elections

The governing board of ICMA’s European Repo and Collateral Council (ERCC) is the ICMA ERCC Committee consisting of 19 individuals drawn from council member firms and elected annually by ICMA’s ERCC. The election period for the 2016 ICMA ERCC elections closed today (12 February 2016). The names of the 2016 – 2017 ICMA ERCC Committee can be found here.



Overall repo market outstandings in Europe remain stable despite decline in repo books of G-SIFIs says ICMA Survey

11 February 2016
(London, UK) The European Repo and Collateral Council of the International Capital Market Association (ICMA) today released the results of its 30th semi-annual survey of the European repo market. The survey, which calculates the amount of repo business outstanding on 9 December 2015 from the returns of 72 offices of 68 financial groups, mainly banks, sets the baseline figure for market size at EUR 5,608 billion, broadly unchanged from the June 2015 survey figure of EUR 5,612 billion.

To view the press release, click here.
To download the survey report, click here.



ICMA publishes overview of CSDR Mandatory Buy-ins Final Regulatory Technical Standards

1 February 2016 ESMA published the draft regulatory technical standards for CSDR settlement discipline, including mandatory buy-ins.
 
ESMA has clearly made every effort to negate the adverse market impacts and the inherent flaws of a deeply contentious and widely opposed regulatory initiative. ESMA should be commended for pushing the interpretation and papering over the flaws of the Level 1 as far as legally possible, and for recognizing the potentially negative impacts of mandatory buy-ins on the smooth and orderly functioning of Europe’s capital markets.
 
However, despite the good work by ESMA, the regulation still remains highly problematic. Firstly, the RTS do not correct an explicit asymmetry in the direction of the payment of the price differential for the buy-in or cash-compensation. This creates unpredictable and unmanageable risks for liquidity providers and intermediaries and in many instances would render the buy-in process unfit for purpose. Secondly, turning buy-ins into an obligation rather than a right, particularly with a cash compensation resolution, not only creates additional risks for liquidity providers and intermediaries, but it also creates unpredictable and unmanageable risks for investors. Therefore, it remains highly questionable whether the adverse market impacts of mandatory buy-ins will justify any potential benefit.  
 
Ultimately, settlement inefficiencies in the European capital markets are primarily the result of fragmented and inefficient settlement systems and processes, rather than the behavior of dealers and other liquidity providers. Accordingly, fixing Europe’s back-office should be the primary focus of market and regulatory initiatives, while the implementation of mandatory buy-ins is postponed for as long as possible.
 
The Final Report and draft RTS can be found here.
 
Click here for an overview of the draft RTS.



ICMA is pleased to welcome the following new members in February 2016:

Axis Bank Limited, Mumbai
Banco Continental S.A., Lima
Citibank Europe plc, Dublin
McCann FitzGerald, Dublin
MPS Capital Services S.p.A., Firenze
Standard Chartered Bank (Hong Kong) Limited, Hong Kong

ICMA now has 492 members in approximately 60 countries. Click here to view the full list of ICMA members.



ICMA updates briefing note on MiFID II/R trade transparency requirements in respect of bonds

28 January 2016
ICMA has updated its briefing note on MiFID II/R trade transparency requirements in respect to bonds, in light of the draft regulatory technical standards published by ESMA in September 2015. These RTS are still to be approved by the co-legislators and could be subject to further change.

To view the briefing note, click here.

For more information about MiFID II, click here.



Corporate bond market liquidity: important meeting of the SMPC on 4 February

ICMA Members only:
Sell-side and buy-side members active in the European corporate bond secondary markets are invited to join the next meeting of the ICMA Secondary Market Practices Committee, to be held at ICMA's offices in London on 4 February at 2 p.m. Jonathan Haynes of DG FISMA will also join the meeting to present on and discuss the European Commission’s work on corporate bond market liquidity. Mr Haynes is part of the core team working on the European Commission’s Capital Markets Union Action Plan and who is leading the Commission’s work on corporate bonds. This will be a fantastic opportunity for ICMA members to engage directly with the Commission in discussing issues related to European corporate bond secondary market liquidity and potential initiatives to improve market liquidity, efficiency, and performance.

The full agenda and details of the meeting can be found here.
Places are limited, if you are interested in attending please contact Leonie Scott.



AFME and ICMA publish joint paper on “T2S Wave 1 – Review and Request for Action Following Migration of Italian Market to T2S"

20 January 2016
AFME and ICMA have published a joint paper on “T2S Wave 1 – Review and Request for Action Following Migration of Italian Market to T2S”, which also includes a short section on specific repo impacts.

To access the report, click here.



ICMA responds to European Commission’s Call for Evidence on cumulative impact of regulation

20 January 2016
ICMA has submitted its response to the European Commission’s Call for Evidence on the cumulative impact of regulation. The response focuses principally on the issue of market liquidity within the context of rules affecting the ability of the economy to finance itself and grow. It draws on much of the work and research ICMA has undertaken previously related to both European corporate bond secondary market liquidity and collateral and repo market liquidity, and which highlights the real economy impacts of reduced market liquidity on both investors and capital raisers.  

ICMA hopes that this ‘call for evidence’ is the first step in a continual process of consultation with market stakeholders to support the ongoing refinement and improvement of the European regulatory process, and to ensure the successful attainment of intended outcomes, while promoting resilient and well-functioning European capital markets.

To view the response, click here.
For more information on Capital Markets Union, click here.



ICMA CBIC responds to European Commission consultation on covered bonds

6 January 2016
The ICMA AMIC Covered Bond Investors Council (CBIC) has responded to the European Commission’s consultation on Covered bonds in the European Union. The consultation was launched on 30 September 2015. The CBIC noted the underlying assumption in the economic analysis that the extreme convergence of covered bond spreads before the crisis should be the norm and that subsequent events point to a sub-optimal fragmentation of markets within the European Union. However, CBIC members argued that markets prior to 2007 had mispriced risks inherent in the securities and that a return to that condition was not necessarily a desirable outcome. Particularly in the absence of implicit state support for the banking system, different covered bonds do reflect different underlying risk characteristics and it is the job of the market to identify and price these risks appropriately.

With regard to the main question in the consultation, the two options for covered bond harmonisation, the CBIC noted that there was insufficient detail in the consultation to give a definitive view. Some CBIC members believed that voluntary convergence of national regimes would suffice, particularly if backed by measures like capital requirements referencing the best practice guidelines. Other CBIC members expressed a preference for an EU legal framework with minimum standards based on current best practice.

To view the response, click here.



New - Official rules for Chinese Green Bond market

6 January 2016
ICMA is pleased to make available to the market English versions of the Green financial bond rules of the People’s Bank of China (PBOC). The documents include the PBOC Announcement and the Preparation Instructions on Green Bond Endorsed Project Catalogue (2015 Edition). These translations have been coordinated and made available by ICMA for information only. In case of any discrepancy between these translations and the original Chinese version, please refer to the Chinese version as the official document.

ICMA has made amendments to the following areas of the ICMA Primary Market Handbook

22 December 2015

  • Appendix A1 ICMA Agreement Among Managers version 1 Introduction and New York law Schedule for Non Equity-Related Issues Governed by New York Law;
  • Appendix A7 ECP documentation for investment grade issuers (previously titled "ECP documentation");
  • Appendix A11 Paying agents and ICSDs;
  • Appendix A12 Pre-sounding, bookbuilding and allocations;
  • Appendix A17 Withholding tax (previously titled "Withholding tax and EU Savings Tax Directive"); and
  • Appendix B1 Reader’s guide.
To view these amendments, click here.
For more information on the ICMA Primary Market Handbook, click here.



ICMA ERCC Ops Group publishes overview on SFT reporting regulations and impact analysis

22 December 2015

ICMA’s ERCC Operations Group has published an updated overview of relevant regulatory initiatives on the identification and reporting of SFTs, as well as a supplementary set of slides which analyse and illustrate the operational impacts of the various requirements on the repo lifecycle.

For further information and to access both documents, click here.



ICMA ERCC Ops Group publishes standardised Trade Matching and Affirmation template for repo

8 December 2015

ICMA’s ERCC Operations Group has published a standardised template for trade matching and affirmation of repo transactions. The ‘TMA Template’ sets out recommended mandatory and optional matching fields, working alongside a Glossary of terms defining each of the matching fields.

For further information on the initiative and to access both, TMA Template and Glossary, click here.



ICMA European Repo Council changes its name to reflect increasing focus on collateral

7 December 2015

The European Repo Council (ERC) was established by ICMA in December 1999, to represent the cross-border repo market in Europe. Since then it has continued to consolidate and codify best market practice, supporting the development of a robust European repo market with measures including the development of the Global Master Repurchase Agreement (GMRA) and the publication of the ICMA ERC Guide to Best Practice in the European Repo Market; dissemination of market data through semi-annual surveys of the European repo market; and provision of education through courses on repo and collateral.

The repo market is the main means by which collateral is sourced, priced and circulated. In the current environment, where post-crisis regulation has encouraged the increased use of high quality collateral to reduce risks in the financial system, the ERC has increasingly focused its efforts on working with the authorities to create an efficient collateral market. In recognition of this evolution of the market and the way in which the ICMA ERC now operates, the ICMA Board has changed the name of the ICMA ERC to the ICMA European Repo and Collateral Council (ERCC) with immediate effect.

Contact: ercc@icmagroup.org.



New ICMA ERC Operations Group webpage launched

24 November 2015

ICMA’s ERC Operations Group has launched its new webpage today, which will serve as a central information hub for the important work of the Group in the post-trade space.

To visit the new page, click here.



Post crisis regulation is driving radical change in the European repo market says new ICMA study

18 November 2015
(Zurich, Switzerland)
The European Repo Council (ERC) of the International Capital Market Association (ICMA) has today launched a new study: ‘Perspectives from the eye of the storm: the current state and future evolution of the European repo market’, which looks at how the repo market in Europe is changing in response to regulatory pressures.

To view the press release, click here.
To view the study, click here.



AFME and ICMA welcome G20 Infrastructure recommendations

16 November 2015

The Association for Financial Markets in Europe (AFME) and the International Capital Market Association (ICMA) have welcomed the G20 Infrastructure and Investment recommendations made this weekend at the Antalya summit.

To view the press release, click here.



ICMA Announces Publication of 2015 Universal Resolution Stay Protocol with Securities Financing Transaction Annex

12 November 2015
(Zurich, Switzerland)
The International Capital Market Association (ICMA) today announced the publication of a Securities Financing Transaction Annex (“SFT Annex”) that forms part of the ISDA 2015 Universal Resolution Stay Protocol also published today (the “Protocol”). The Protocol builds on the version developed in 2014 in close co-ordination with the Financial Stability Board which focused on amending ISDA Master Agreements for OTC bilateral derivatives to improve the effectiveness of cross-border bank resolution actions.

To view the press release, click here.
For more information, click here.



ICMA publishes MiFID II/R and Repo Q&A

11 November 2015

ICMA has published a Q&A paper on MiFID II/R and Repo.

To view the Q&A, click here.



ICMA concludes MoU with CMA, Sultanate of Oman

5 November 2015

ICMA has concluded a memorandum of understanding with the Capital Market Authority (CMA) of the Sultanate of Oman to enhance mutual cooperation and exchange of information relating to capital markets.

HE Sheikh Abdullah Salim Al Salmi, Executive President, signed for CMA. Martin Scheck, Chief Executive and Leland Goss, General Counsel signed for ICMA.

The MoU provides for exchange of information about the laws and regulations relating to regulation and supervision of capital markets and the practices of international and local capital markets, training and research.

The agreement will contribute to boosting and enhancing the legislative and regulatory infrastructure of the capital market whether relating to investment instruments, regulations or clearing and settlement systems and avail opportunities to benefit from the mechanisms of regulation of intermediaries and brokerage profession and other related matters to limit unsound practices.

For more information, click here.



ICMA Future Leaders holds its first event in London with over 170 in attendance

23 October 2015

ICMA Future Leaders held its first event yesterday evening in London with over 170 in attendance.

For more information and to see the photos, click here.



ICMA publishes GMRA legal opinion for Malaysia

ICMA has published a legal opinion for Malaysia covering the Global Master Repurchase Agreement (GMRA), the most widely used standard agreement for international repo transactions. The Malaysia opinion is available to ICMA members only and can be accessed here.

For Guidance on the use of the GMRA and legal opinions contact the ICMA Legal and Regulatory Helpdesk.

For more information about becoming an ICMA member please contact the ICMA membership department on +41 44 363 4222.



ICMA creates centralised source for comparison of fixed income trading platforms in Europe

8 October 2015

ICMA has launched a comparative mapping study of electronic fixed income platforms in Europe. The ICMA Electronic Platform Mapping Study compares the key features and capabilities of 22 electronic trading platforms (ETPs) and information networks that are currently available for trading fixed income in Europe.

The landscape of bond trading is changing. Driven by regulatory developments and the search for liquidity, trading is increasingly moving to a variety of different electronic trading platforms. ICMA has undertaken a mapping initiative of trading platforms for European fixed income markets, listing their features and capabilities in a standard format allowing market participants to compare and contrast ETP providers and to determine which platforms best suit their investment and/or trading strategies.  

As the market continues to evolve the study will be updated.

Click here for more information and to view the study.



ICMA's membership has now reached 493 members in 57 countries

...with the admission of the following firms in October 2015:

Bank of China (Hong Kong) Limited, Hong Kong
Bank of China Limited, Beijing
FIMBank p.l.c., Malta
FMDQ OTC PLC, Lagos
Kuwait Projects Company (Holding) K.S.C.P., Safat
Morgan, Lewis & Bockius UK LLP, London
SumRidge Partners, LLC, Jersey City NJ

Click here to view the full list of ICMA members.



ICMA ERC Operations Group responds to Bank of England’s public consultation on “A new sterling money market data collection and the reform of SONIA”

1 October 2015

The ICMA ERC Operations Group has submitted a response to the Bank of England’s public consultation on “A new sterling money market data collection and the reform of SONIA”. In line with the scope of the ERC, the response focuses on the Bank of England’s proposals in relation to the collection of data on securities financing transactions.

To view the response, click here.



Growth in the European repo market is stalled according to latest ICMA survey

29 September 2015
(London, UK)
The European Repo Council of the International Capital Market Association (ICMA) today released the results of its 29th semi-annual survey of the European repo market. The survey, which computes the amount of repo business outstanding on 10 June 2015, sets the baseline figure for market size at EUR 5,612 billion. This represents a very small (2%) increase from the headline figure of EUR 5,500 billion in December 2014 and a 2.9% decline in market size from the figure of EUR 5,782 billion recorded a year ago in the survey for June 2014.

To view the press release, click here.
To download the survey report, click here.



ICMA-NAFMII Working Group issues report on practices and procedures in the Chinese and international primary debt capital markets

21 September 2015

The ICMA-NAFMII Working Group, which brings together experts from financial institutions in China and the UK to share expertise on processes, practices, and the associated market infrastructure in debt capital markets, has issued its first report: ‘Practices and procedures in the Chinese and international primary debt capital markets’. The report is issued today as Vice-Premier Ma Kai and Chancellor of the Exchequer George Osborne meet in Beijing as part of the 7th UK-China Economic and Financial Dialogue.

To view the press release, click here.
To view the report, click here.
For more information about ICMA's work in the Asia Pacific region, click here.



ICMA publishes revised Primary Market Handbook

2 September 2015
(London, UK)
ICMA has published a substantially revised version of its recommendations, guidance and standard language for managers of new issues of syndicated international bonds - the ICMA Primary Market Handbook.

To view the press release click here.



ICMA's membership has now reached 489 members in 56 countries

...with the admission of the following firms in August 2015:

Bank Leumi Le-Israel B.M., Tel Aviv
Bankhaus Lampe KG, Bielefeld
Burgan Bank (S.A.K.), Safat
Citigroup Global Markets Australia Pty Limited, Sydney
Indonesia Financial Services Authority (OJK), Jakarta
Osler, Hoskin & Harcourt LLP, Toronto
Piraeus Bank S.A., Athens
Shanghai Stock Exchange, Shanghai

Click here to view the full list of ICMA members.



ICMA AMIC responds to European Commission consultation on central clearing of OTC derivatives

14 August 2015

ICMA’s AMIC has submitted a response to the European Commission’s consultation on the review of the European Market Infrastructure Regulation (EMIR). AMIC members have only expressed interest in certain aspects of the review: (1) the functioning of the clearing obligation in the areas of frontloading and risk compression; (2) trade reporting; and (3) the functioning of the pension scheme arrangement (PSA) transitional exemption from the clearing obligation.

To view the response, please click here.



ERC Operations Group publishes briefing note on the implication for the repo product related to the projected ‘go live’ for Monte Titoli in TARGET2-Securities

10 August 2015
 
ERC Operations Group has published a briefing note on the implication for the repo product related to the projected  ‘go live’ for Monte Titoli in TARGET2-Securities (expected at the end of August 2015). The note focuses on three key repo aspects:  (i) Off-leg rep mismatches; (ii) Term repos;  and (iii) Standard settlement instructions.

To view the briefing note, click here.



ICMA responds to ESMA consultation paper on CSDR

6 August 2015

ICMA has submitted its response to the ESMA Consultation Paper 'Regulatory Technical Standards on the CSD Regulation - The Operation of the Buy-in Process'.

To view the response, click here.



Updated ICMA ERC Guide to best practice in the European Repo Market

27 July 2015

The updated ICMA ERC Guide to best practice in the European Repo Market is now available.

Click here to view.



Buy-ins, how they work, and the challenge of CSDR - An ICMA briefing note

July 2015

As ICMA prepares its response to the ESMA Consultation Paper on the CSDR regulatory technical standards related to the operation of buy-in, it publishes a Briefing Note on the buy-in process. The paper illustrates how buy-ins work currently, and how they are proposed to work under CSDR. While CSDR does not define what a buy-in is, or what it is intended to do, it does provide for who should be responsible for, and be affected by, a buy-in, as well as the related cash-flows. The deadline for responses to the Consultation Paper is August 6th, and ICMA is currently consulting with its members for input.

To view the briefing note, click here.



AFME and ICMA release Guide to infrastructure financing in support of the Investment Plan for Europe

24 June 2015

AFME and ICMA today release the “Guide to infrastructure financing, bank loans, debt private placements and public bonds – smoothing the pathway for effective funding”. This is the first comprehensive and practical guide to help infrastructure issuers, sponsors and project companies more easily tap various types of funding, including bank, private placement and public project bond financing in Europe.

To view the press release, click here.
To view the guide, click here.



ICMA admits 12 new members in June 2015

ICMA is pleased to welcome the following new members in June 2015:

Africa Finance Corporation, Lagos
Arthur Cox, Dublin
Association for Savings & Investment SA (ASISA), Cape Town
Continental Capital Markets Limited, London
DLA Piper UK LLP, London
ICAP Securities & Derivatives Exchange Limited (ISDX), London
International Finance Corporation, Washington DC
Municipality Finance Plc, Helsinki
SBAB Bank AB (publ), Stockholm
SNS Bank N.V., Amsterdam
Tradition (UK) Limited, London
Traiana Limited, London

Click here to view the full list of ICMA members.

ICMA now has 481 members in approximately 60 countries.



Save the Date for ICMA's AGM & Conference 2016 in Dublin on 18-20 May!

ICMA's 2016 Annual General Meeting & Conference will be held in Dublin on 18-20 May.

To view information about the 2015 AGM & Conference in Amsterdam, click here.



ICMA is pleased to welcome the following new members in June 2015

Bank of China Limited, London Branch, London and NBC Global Finance Limited, Dublin

Click here to view the full list of ICMA members.

ICMA now has 469 members in approximately 60 countries.



ICMA members elect new board and new chairman

4 June 2015
(Amsterdam, Netherlands)
Members of the International Capital Market Association (ICMA), the leading trade association for financial market participants, elected new board members and a new chairman of the ICMA Board at the ICMA AGM in Amsterdam.

To view the press release, click here.



ICMA AMIC’s Market Finance Working Group responds to FSB/IOSCO consultation

29 May 2015

AMIC’s Market Finance Working Group (formed in December 2014 to address industry concerns about regulatory focus on shadow banking) responded to a second FSB/IOSCO consultation on a methodology to identify NBNI G-SIFIs. AMIC welcomed the FSB/IOSCO’s willingness to refine its approach following the first consultation, but cautioned against including asset management companies as potentially systemically risky entities alongside investment funds.

To view the response, click here.


ICMA launches the new Fixed Income Certificate (FIC) in Barcelona

ICMA Executive Education is pleased to announce that the first classroom based Fixed Income Certificate (FIC) programme was held at the end of April 2015.

The programme is the natural evolution of the previous International Fixed Income & Derivatives (IFID) certificate programme, which has been the gold standard for financial professionals for nearly 40 years. The new course syllabus is designed to reflect the realities of today’s fixed income markets, while retaining the emphasis on developing a candidate’s practical skills for trading, investment and risk management.

The content is organised around three essential topic areas: Trading the Yield Curve with Cash Market Securities, Interest Rate Derivatives, and Credit Trading.

Each section has been expanded to include new material reflecting the evolution of products and market regulation, including:
Changes in market practice for LIBOR fixings and the calculation and application of option-adjusted spreads (OAS);
  • Inflation indexed bonds;
  • Sovereign credit risk;
  • The impact of roll yield on the performance of futures hedges and strategies;
  • The construction and analysis of conditional steepening and flattening trades using swaptions,  use of interest rate caps and floors and swaptions to trade views on correlation between forward rates and how credit default swaptions can be used to express views on the level and volatility of credit spreads;
  • Expanded treatment of the impact of Dodd-Frank and EU regulatory reforms on OTC derivatives market practice, specifically central clearing and swap execution facilities;
  • Capital requirements and other ‘firm-level’ aspects of regulation.
The recent classroom based programme attracted students from around the world with candidates travelling to Barcelona from Europe, the UK, the America’s and the Middle East. This provided those in attendance with an excellent networking opportunity in addition to obtaining a globally recognised qualification.

Fredrik Jenestrand, Head of Regulatory Strategy and Implementation at Nordea Markets FICC, said: “Even though I had high expectations before attending the course, these were quickly surpassed and I enjoyed a fantastic learning experience. It was extremely beneficial to make new connections from all over the world who operate in the same market.”

The CFA institute has accredited the FIC as a Qualified Activity under its Continuing Education Programme with candidates qualifying for 30 credit hours. It has also been included on the UK’s Financial Skills Partnership (FSP) qualifications list for ‘Advising on securities in the wholesale market place’ and ‘Advising on derivatives in the wholesale market place’.

The next classroom based course will again take place in Barcelona on 25-31 October 2015. The FIC is also available to study via our online learning platform, with the next term starting on 1 July 2015. Full details of the online programme and the learning platform can be found here.

For more information regarding any of ICMA Executive Education’s range of courses, please contact education@icmagroup.org.



ICMA responds to European Commission Consultation Document on an EU framework for simple, transparent and standardised securitisation

13 May 2015

ICMA’s AMIC and ICMA respond to European Commission Consultation Document on an EU framework for simple, transparent and standardised securitisation:

To view the AMIC response, click here.
To view the ICMA response, click here.



ICMA publishes New York governing law model collective action, pari passu and creditor engagement clauses to facilitate future sovereign debt restructuring

11 May 2015

The International Capital Market Association (ICMA) has today published collective action, pari passu and creditor engagement clauses for sovereign debt securities issued under New York governing law. The use of these new terms in government bonds is intended to facilitate future sovereign debt restructurings.

To view the press release, click here.
For more information, click here.



ICMA launches the Executive Education Scholarship Programme

ICMA Executive Education (ICMA EE) is pleased to offer a unique scholarship programme to ICMA member firms, allowing employees at the early stages of their careers to participate in our range of leading financial market qualifications at highly subsidised fees.

Aimed at candidates under the age of 25, this programme will equip the capital markets future leaders with the required knowledge and qualifications needed to meet their potential.

ICMA EE Scholarship candidates will receive a 50% subsidy applied to the existing discounted member rate for each course attended.

We are committed to making ICMA EE public courses more accessible to the younger audience of the industry. High quality financial training and executive education is highly valued by many firms and we endeavor to do everything possible to assist our members in developing their employees’ skills.

For more information on the scholarship programme and our range of courses, click here.



ICMA responds to European Commission Consultation Document on a Review of the Prospectus Directive

1 May 2015

ICMA has responded to the European Commission Consultation Document on a Review of the Prospectus Directive.

To view the response, click here.



ICMA responds to European Commission Green Paper on Building a Capital Markets Union

30 April 2015

ICMA has responded to the European Commission Green Paper on Building a Capital Markets Union.

To view the response, click here.



ICMA launches online foundation level training programmes

ICMA Executive Education is pleased to announce that our globally recognised foundation level training programmes, the Securities Operations Foundation Course (SOFC) and Financial Markets Foundation Course (FMFC), will be available to study via our online learning platform from 1 May.

As part of ICMA's commitment to providing the highest standard in executive education, the new online versions benefit from innovative interactive software and a supportive student experience. Clearly defined targets, regular monitoring and structured progress ensure that candidates have all the support required to complete the selected programme.

Candidates must register by 30 April 2015 to participate in the next SOFC and FMFC Online Programmes, both starting on 1 May 2015.


   

 
Securities Operations Foundation Course (SOFC) Online Programme

An introductory programme intended for anyone entering a career in the securities operations area of the financial markets. The content provides candidates with the essential information necessary to develop a thorough understanding of both the debt and equity markets.

The course conveys numerous conceptual points, with emphasis on the practical aspects of securities operations, including the day-to-day challenges that candidates will face.

By completing the programme you will:
  • Understand the primary components of the securities trade life-cycle
  • Comprehend the similarities and differences between equities and bonds
  • Be able to demonstrate an understanding of how equities and bonds are brought to the marketplace
  • Appreciate the roles of the major securities market participants
  • Comprehend fundamentals of repo and securities lending & borrowing transactions
Click here to view the course details and to register.
  


 
Financial Markets Foundation Course (FMFC) Online Programme

An introductory level qualification intended for anyone entering into a career in the financial markets, intended to provide ‘breadth of knowledge’ to make it relevant to people pursuing careers in the front office, middle office and operations areas.

The course content places an even emphasis on introducing and explaining the key concepts of each subject area to develop candidates’ practical knowledge and skill sets.

By completing the programme you will understand:
  • Key players in the financial markets including issuers, investors and intermediaries
  • The interaction between cash and derivative markets
  • The key features of both equity and debt products
  • The structure of the FX market and how it operates
Click here to view the course details and to register.



ICMA publishes the 2015 legal opinions for the Global Master Repurchase Agreement

9 April 2015

ICMA has today published the 2015 legal opinions which support the Global Master Repurchase Agreement (GMRA), the standard agreement used for international repo transactions. The 2015 opinions support the use of the GMRA in over 60 jurisdictions worldwide.

Find out more here.



Revised 2015 Green Bond Principles update standard process for issuance in fast-growing green bond market

27 March 2015

The Executive Committee of the Green Bond Principles (“GBP”), a representative group of issuers, investors and intermediaries in the Green Bond market, with the support of ICMA, has published a second edition of the GBP. The GBP are voluntary process guidelines that recommend transparency and disclosure to promote integrity in the development of this fast growing market, by clarifying the approach for issuance of a Green Bond.

To view the press release, click here.
To view the Green Bond Principles, click here.



ICMA is pleased to welcome the following new members in March 2015:

Banco Santander (Brasil) S.A., São Paulo; Federal Reserve Bank of New York, New York; HSBC Bank Middle East Limited, Dubai; KA Finanz AG, Vienna; National Bank of Georgia, Tbilisi; Standard Advisory London Limited, London

Click here to view the full list of ICMA members.

ICMA now has 471 members in approximately 60 countries.



ICMA responds to ESMA Consultation Paper on MiFID II/MiFIR

2 March 2015

ICMA has responded to ESMA's consultation paper on MiFID II/MiFIR.

To view the response, click here.



Global standard qualification for the fixed income market revised and re-launched

ICMA Executive Education has completely revised its long established premium qualification for the fixed income market and re-launched it as the ICMA Fixed Income Certificate (FIC). The programme is available in both a classroom based and online format. Registration for both is now open.

To view the full syllabus and course details, please click here.



Bridging the growth gap

A new report  ‘Bridging the growth gap: Investor views on European and US capital markets and how they drive investment and economic growth’ has been published by AFME and BCG.

To view the report, click here.



Global standard qualification for the fixed income market revised and re-launched

ICMA Executive Education has completely revised its long established premium qualification for the fixed income market and re-launched it as the ICMA Fixed Income Certificate (FIC). The programme is available in both a classroom based and online format. Registration for both is now open.

To view the full syllabus and course details, please click here.



Bridging the growth gap

A new report  ‘Bridging the growth gap: Investor views on European and US capital markets and how they drive investment and economic growth’ has been published by AFME and BCG.

To view the report, click here.



ICMA publishes two studies which highlight the effect of regulation on capital market activity

24 February 2015
(London, UK)
The International Capital Market Association (ICMA), the trade body for participants in the cross border debt capital markets, has today published two separate studies which highlight the continuing cumulative effect of regulation on the ability of financial markets to support economic growth.

To view the press release, click here.
To view the 28th ICMA ERC European repo market survey, click here.
To view the ICMA Impact Study for CSDR Mandatory Buy-ins, click here.



ICMA responds to ESMA CSDR Regulation Level 2 Consultation Papers

19 February 2015

ICMA has submitted its formal response to the ESMA Consultation Papers on Technical Standards and Technical Advice under the CSD Regulation.

To view the response, click here.



ICMA responds, jointly with others, to BCBS/IOSCO’s consultation on "simple, transparent and comparable securitisations"

13 February 2015

ICMA has responded, jointly with the GFMA, the IIF and ISDA, to the BCBS/IOSCO Consultative Document on “Criteria for identifying simple, transparent and comparable securitisations".

To view the response, click here.



Is Japan’s revitalisation real and sustainable? Representatives from the finance industry and the capital markets in Europe and Japan discuss progress and the issues

12 February 2015
(London, UK – Tokyo, Japan)
Top representatives from the finance industry and capital markets in Europe and Japan gathered at the Mansion House in London yesterday for the Japan Securities Summit, a unique event co-organised by the Japan Securities Dealers Association (JSDA) and the ICMA.

To view the press release, click here.



ICMA ERC responds to FSB Consultative Proposals on Data Collection and Aggregation

12 February 2015

The ICMA ERC has submitted its response to the FSB's Consultative Proposals on Data Collection and Aggregation.

To view the response, click here.



Trade bodies launch guide to best practice for EU corporate private placement market

11 February 2015

The Pan-European Private Placement Working Group (PEPP Working Group) led by the ICMA has launched the Pan-European Corporate Private Placement Market Guide. The Guide sets out a voluntary framework for common market standards and best practices which are essential for the development of a Pan-European Private Placement market aimed at providing medium to long term finance to European mid-sized companies, in close alignment with the European Commission’s goal of bringing about a Capital Markets Union.

To view the press release, click here.
To download the guide, click here.



Ignazio Angeloni, ECB speaks at ICMA event

27 January 2015

Ignazio Angeloni, Member of the Supervisory Board of the European Central Bank spoke at the ICMA Capital Market Lecture series in Frankfurt.

To view Mr Angeloni's speech on Transparency and Bank Supervision, please click here.



ICMA responds to the UK FCA’s consultation on restrictions on the retail distribution of regulatory capital instruments

27 January 2015

ICMA has responded to the FCA’s consultation on restrictions on the retail distribution of regulatory capital instruments.

To view the response, click here.



ICMA is pleased to welcome the following new members in January 2015:

Adamant Capital Partners Jsc, Sofia; Ahorro Corporación Financiera, S.V., S.A., Madrid; Liquidity Finance LLP, London; Orrick, Herrington & Sutcliffe (Europe) LLP, London; Shanghai Clearing House, Shanghai

Click here to view the full list of ICMA members.

ICMA now has 466 members in 55 countries.



ICMA responds to the Fair and Effective Markets Review

15 January 2015

ICMA has responded to the Fair and Effective Markets Review.

To view the response click here.



ICMA responds, jointly with others, to EBA’s consultation on "simple, standard and transparent securitisations"

14 January 2015

ICMA has responded, jointly with AFME, the BBA and ISDA, to the EBA’s Discussion Paper on “simple, standard and transparent securitisations".

To view the response, click here.
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