International Capital Market Association ICMA...Overview of the International Capital Market...

ICMAInternational Capital Market Association

Table of Contents

International Capital Market Association (ICMA)

ICMA’s Mission Statement

Overview of ICMA

Benefits of ICMA Membership

Standard Documentation

Legal & Regulatory Helpdesk

Market Practice and Regulatory Policy & Quarterly Report

Market Practice & Regulatory Policy Councils and Committees

Executive Education

Events

Membership – Regional Representation

Offices and Contacts

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6 – 7

8 – 22

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25 – 26

27 – 28

ICMA’s Mission Statement

The mission of ICMA is to promote resilient and well functioning international debt capital markets. Such markets are necessary for economic growth, and benefit market participants and their clients alike

Working actively with its members in all segments of the wholesale and retail markets, buy and sell side, ICMA focuses on a comprehensive range of regulatory, market and other relevant issues which impact market practices and the functioning of the international debt capital markets

The full mission statement is available on ICMA’s website: www.icmagroup.org/About-ICMA/


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http://www.icmagroup.org/About-ICMA/

Overview of the International Capital Market Association

ICMA is a unique organisation and an influential voice for the global capital market. ICMA’s market conventions and standards have been the pillars of the international debt market for almost 50 years

Membership continues to grow and we currently have over 470 members based in 56 countries. Around 80% of members are European. ICMA members include global investment banks, commercial and regional banks, brokers, private banks, institutional asset managers, pension funds, central banks, sovereign wealth funds and other institutions with a pronounced interest in the securities market, such as supranational institutions, infrastructure providers, rating agencies and leading law firms…

Visit our website for the list of ICMA members: www.icmagroup.org/membership

International reach is augmented through MoUs and affiliations globally with SCA in UAE, NSMA in Russia, NAFMII in China, JSDA in Japan, ANBIMA in Brazil and ICSA

Regulatory interaction takes place with national, European and international authorities; and through membership of international consultative bodies such as IOSCO – AMCC


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http://www.icmagroup.org/membership

Benefits of ICMA Membership

ICMA standard documentation on Primary, Secondary and Repo Markets

Significant tangible savings on the legal costs with 64 GMRA legal opinions

Dedicated Legal & Regulatory Helpdesk

Dispute resolution procedures with a defined conciliation and arbitration

ICMA Market Practice and Regulatory Policy Committees and Councils developing recommendations and guidance on best market practice and responses to regulators

Discounted Executive Education programmes recognised by regulators and the market

ICMA Events: Networking opportunities at 100+ events/year

ICMA’s Members’ Register: 5,000+ contacts for members

‘Seal of approval’: more and more financial institutions require new counterparties to be ICMA members


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ICMA Standard Documentation

ICMA’s market conventions and standards have been the pillars of the international debt market for close to 50 years.

Guidelines and recommendations for the Primary Market

• ICMA Primary Market Handbook

Rules and recommendations for the Secondary Market

• ICMA Rulebook

Standard agreement for the Repo Market

• Global Master Repurchase Agreement (GMRA)

• Legal opinions on its validity in 64 jurisdictions – which represent significant savings on legal costs for ICMA members


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ICMA Legal & Regulatory Helpdesk

ICMA’s Legal & Regulatory Helpdesk is one of the main services that we offer to our members. It provides informal legal guidance in the following areas:

• ICMA Primary Market Handbook

• ICMA Rulebook (Rules and recommendations for the Secondary Market)

• GMRA and associated 64 legal opinions for the repo market

• ICMA dispute resolution procedures: conciliation and arbitration

And up to date information on current or proposed financial regulation

Contacts

• London +44 207 213 0330

• Zurich +41 44 360 5237

• Hong-Kong +852 2531 6590

• For legal issues [email protected]

• For regulatory questions [email protected]


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mailto:[email protected]


ICMA Market Practice & Regulatory Policy

ICMA members work through its market practice and regulatory policy committees and councils to provide expert views on the issues affecting the international capital markets.

They also act as a forum for discussion and reaching a consensus on topics of common interest.

Members can participate in ICMA Committees which enable direct influence in developing recommendations for best market practice and the efficient operation of the markets

The Committees also formulate guidance for members and consider policy responses to regulators


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ICMA Quarterly Report

ICMA’s Quarterly Report is produced by the Market Practice and Regulatory Policy team. It is an industry recognised publication focused on market practice and regulatory issues that outlines developments in the main areas in which the Association is currently engaged namely:

• regulatory response to the crisis

• sovereign bond markets

• short-term markets

• primary markets

• secondary markets

• asset management

• market infrastructure


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http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/Regulatory-Policy-Newsletter/

ICMA Councils and Committees

Regulatory Policy Committee

Primary Market Practices Committee

• Legal & Documentation Committee

Financial Institution Issuer Forum

Public Sector Issuer Forum

Corporate Issuer Forum

European Repo Council and Committee

Euro Commercial Paper Committee

Secondary Market Practices Committee

Asset Management and Investors Council

• Covered Bond Investor Council


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ICMA RPC – Regulatory Policy Committee

ICMA RPC gathers together the head of public affairs/compliance departments of our members and the Chairs of our Councils and Committees

G20 financial regulatory reform agenda

• FSB/BCBS; IOSCO; IMF

European System of Financial Supervision

• ESRB; ESAs (particularly ESMA)

Capital Markets Union

OTC markets regulation

• MiFID; CSDR; SFTR


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ICMA PMPC – Primary Market Practices Committee

ICMA PMPC is supported by the work of ICMA’s Legal & Documentation committee and gathers the heads and senior members of the syndicate desks of 48 ICMA member banks active in lead managing syndicated bond issues in Europe

Market practice

• Market soundings; Book-building; Allocations; Stabilisation

• Asset servicing (holding chain technicalities)

• Primary Market Handbook review

Regulatory reform

• Prospectus Directive review

• Market Abuse Directive review – definition of inside information, stabilisation safe-harbour

• MiFID review

• Foreign Account Tax and Compliance Act (FATCA)

• Product intervention

• Packaged Retail and Insurance based Investment Products (PRIIPs)


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ICMA FIIF – Financial Institution Issuer Forum

Heads or senior members of the capital raising, funding and treasury departments of ICMA member firms

Regulatory reform - implications for funding

• Capital requirements and grandfathering under CRR/CRD

• Characteristics of capital instruments, including recent “CoCo” issuances

• Liquidity ratios

• Debt write-down tool (bail-in)

Asset Encumbrance

Transparency

Market Practice Points

• Prospectus liability, liability management


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ICMA PSIF – Public Sector Issuer Forum

Brings together the major Sovereigns, Supranationals and Agencies actively issuing in the European capital markets. Currently more than 30 institutional represented at a senior level

PSIF acts as an information exchange among a group of senior government and public sector officials. Neither lobbying nor advocacy group

Participants share experience and concerns from capital markets activity. Focus on both market practice and impact of regulation

PSIF pursues a high level dialogue with regulatory authorities bringing a unique independent public sector perspective

ICMA supports PSIF through a Secretariat based in Paris, as well as through its other resources and, in particular its Market Practice and Regulatory Policy team


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ICMA CIF – Corporate Issuer Forum

Senior participants representing a cross-section of the major corporate issuers in Europe’s debt capital markets

Practical Implementation of Regulations

• EMIR, Dodd-Frank, Prospectus Directive

Market Practice

• New issues and syndication processes

• Due diligence procedures and practices

• Hybrid issuances

• Retail issuances

• Secondary market issues


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ICMA ERC - European Repo Council/Committee

Over 70 members, including all the major financial institutions in repo, securities lending, and collateralisation transacting cross-border repo business in Europe

Shadow banking and repo: FSB/SFTR

• Transparency; Margins; and re-use

New liquidity requirements

CSDs and settlement discipline

• Preserve commercial bank money settlement alongside central bank money

Central Counterparty (CCP) clearing

• Promote, subject to CCP robustness

Crisis resolution measures: Sustain existing repo creditor rights

GMRA review: GMRA 2011


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ICMA ECP – Euro Commercial Paper Committee

Represents the main dealers in the ECP market

Liquidity requirements

Asset-Backed Commercial Paper (ABCP)

• Impact of “securitisation” regulatory reforms

Money market funds

• New rules governing funds’ investments


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ICMA SMPC – Secondary Market Practices Committee

The core members are senior European corporate bond traders and/or heads of market structure, including both sell-side (broker-dealers) and buy-side (dealing desks)

The SMPC seeks to represent the European corporate bond secondary market through

• Addressing practical issues directly relevant to market practitioners

• Standardizing market best practice

• Disseminating relevant market information

• Promoting the best interests of an efficient and liquid market

Key functions

• Agreeing best practice for the corporate bond secondary market

• Maintaining and developing the ICMA Rules and Recommendations for the secondary market to ensure that they remain relevant and consistent with regulatory requirements

• Leading initiatives to improve corporate bond secondary market liquidity and efficiency

• Providing a forum for discussing the likely impact of relevant regulation on secondary market practices, and for consolidating input and feedback in the regulatory consultation process


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ICMA SMPC – Secondary Market Practices Committee

The core members are senior European corporate bond traders and/or heads of market structure, including both sell-side (broker-dealers) and buy-side (dealing desks)

Public speaking engagements

• Promote SMPC consensus views at conferences and seminars

Recent initiatives

• A study on the current state and future development of the European secondary credit markets

• Response to ESMA MiFID II/R Level II and CSDR Level II Consultations

• Impact study on CSDR Mandatory Buy-ins


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ICMA AMIC – Asset Management & Investors Council

AMIC gathers asset managers, fund managers, private banks, hedge funds, pension funds, insurance companies, alternative investment managers, institutional investors and SWF

Capital Markets Union

• Role of investors in the long-term financing of the European economy

Market Finance

• Follow up of the FSB work streams (non-Bank non-Insurer SIFIs).

Bail-in and Asset encumbrance

• bank funding, long term investments (new working group)

Private placements

• Establishment of a European private placement regime (new working group)


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ICMA AMIC – Asset Management & Investors Council

AMIC gathers asset managers, fund managers, private banks, hedge funds, pension funds, insurance companies, alternative investment managers, institutional investors and SWF

Long-term financing of the European Economy (EC forthcoming Communication)

Regulatory developments

• UCITS, research unbundling

ICMA Wealth Management Charter of Quality

• Standards adopted by the private banking and wealth management industry signed by the Luxembourg Bankers’ Association, the Liechtenstein Bankers Association and promoted via other National Associations


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ICMA CBIC – Covered Bond Investor Council

ICMA’s CBIC embrace all investors interested in the covered bond market, diversified by geography, type of activities and size

The CBIC an investor driven organisation, independent of issuers and the market. The objective of CBIC is to represent investor interests, and promote the long term future development of the European covered bond market

Covered bond transparency

• CBIC European transparency standards template of the key information required by investors to make better informed investment decisions (general issuer data, cover pool data)

MiFID II and CSDR bonds

Covered bond liquidity

Ratings of covered bonds

Regulatory treatment of covered bonds

• Basel III and Solvency II


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Green Bond Principles – GBP

ICMA’s GBP is composed of both members (70+ institutions representing all participants in the green bond market) and observers (23 organisations, of which a third are NGOs)

Green Bonds enable capital-raising and investment for new and existing projects with environmental benefits

The GBP are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by

• Clarifying the approach for issuance of a Green Bond

• Advising on the governance of the Green Bond Principles and other issues

Information on membership applications available on our website:

www.icmagroup.org/green-bonds/membership


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http://www.icmagroup.org/green-bonds/membership

The Pan-European Private Placement Working Group (PEPP WG):

The PEPP WG includes leading trade associations (AFME, ABI, EU PPA, the French Euro PP Working Group, IMA, LMA), The City UK, as well as representatives from leading institutional investors, major law firms and observers from the official sector (including the Banque de France, Agence France Trésor, Banca d'Italia and HM Treasury)

Main objectives of the PEPP WG

• Co-ordination of the various separate working groups with an interest in private placements under one umbrella group, with a view to develop a pan-European Private Placement market

• Promote the maximum level of cooperation between PEPP market participants, associations and other stakeholders for the benefit of the entire market

• Identify barriers to the development of the market, especially to the entry for new issuers and investors, and propose appropriate remedies

The PEPP WG published the Pan-European Corporate Private Placement Market Guide

• Market and product definition

• Common market practices & principles

• Standardised documentation


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ICMA Executive Education

ICMA runs the ICMA Executive Education Programmes together with the ICMA Centre

ICMA Executive Education Courses are recognised by regulators and market participants

Almost 650 delegates participated in our courses in 2014

Up to 30% discounts for ICMA members

List of courses: http://www.icmagroup.org/Training-Development/


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Contacts

David Senior

Director, Head of Business Development


E-mail: [email protected]

Direct: +44 20 7213 0329

Stacey Donoghue

Associate, Business Development


E-mail: [email protected]

Direct: +44 20 7213 0338

http://www.icmagroup.org/Training-Development/

ICMA Events

ICMA organises and supports 100+ events a year

Most ICMA events are free for members to attend

Priority for sponsorship and speaker opportunities for ICMA members

ICMA events provide a great opportunity for the attendees to: • Get up to date on the upcoming regulations and market issues• Hear the views of the experts on the markets, including banks, investors and regulators• Network with their peers, clients and potential prospects

List of upcoming events: http://www.icmagroup.org/events/


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http://www.icmagroup.org/events/

ICMA Membership – over 470 Members in 56 Countries


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ICMA Regions and Regional Committees

Africa Asia Pacific Austria, Eastern and South Eastern Europe• Greece, Turkey, Cyprus and Balkan States

Chapter

Belgium France and Monaco Germany Iberia Italy

Luxembourg Middle East and North Africa Netherlands Nordic Russia and other CIS countries Switzerland and Liechtenstein United Kingdom, Ireland and the

Americas• The Latin American Chapter


Each ICMA Region has a committee led by a chairman who provides insight to ICMA on the regional issues and priorities

See our website for the list of members of each Regional Committee and Chapter: www.icmagroup.org/About-ICMA/regions/

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http://www.icmagroup.org/About-ICMA/regions/

ICMA Offices


ICMA Head Office - ZurichTalacker 29, 8001 Zurich, Switzerland

Phone: +41 44 363 4222Email: [email protected]

ICMA - London Office23 College Hill, London EC4R 2RP, United Kingdom

Phone: +44 20 7213 0310Email: [email protected]

ICMA – Paris Representative Office62 rue la Boétie, 75008 Paris, France

Phone: +33 1 70 17 64 72Email: [email protected]

ICMA – Hong Kong Representative OfficeUnit 3603, Tower 2, Lippo Centre89 Queensway Admiralty, Hong Kong

Phone: +852 2531 6592Email: [email protected]

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ICMA Contacts

Chief Executive• Martin Scheck: [email protected]

Market Practice and Regulatory Policy• Paul Richards – Managing Director, Head of Market Practice and Regulatory Policy

[email protected]

Legal Department• Leland Goss - Managing Director, General Counsel – [email protected]

Membership and Communications • Allan Malvar – Managing Director, Head of Membership, Executive Education and Corporate

Communications – [email protected]• Sanaa Clausse – Director, Business Development – [email protected]• Candice Weinrich – Director, Membership – [email protected]• Shannelle Rose – Head of Events – [email protected]

Executive Education • David Senior – Director, Business Development – [email protected]


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