International Capital Market Association ICMA
Table of Contents 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 1 2 3 4 5 6 7 8 22 23 24 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/ 1
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 approximately 60 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 2
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 3
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 4
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 For regulatory questions legalhelpdesk@icmagroup.org regulatoryhelpdesk@icmagroup.org 5
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 6
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 7
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 8
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 9
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) 10
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 11
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 12
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 13
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 14
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 15
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 16
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 17
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) 18
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 19
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 20
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 21
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 22
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/ Contacts David Senior Director, Head of Business Development ICMA Executive Education E-mail: david.senior@icmagroup.org Direct: +44 20 7213 0329 Stacey Donoghue Associate, Business Development ICMA Executive Education E-mail: stacey.donoghue@icmagroup.org Direct: +44 20 7213 0338 23
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/ 24
ICMA Membership over 470 Members in approximately 60 Countries 25
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/ 26
ICMA Offices ICMA Head Office - Zurich Talacker 29, 8001 Zurich, Switzerland Phone: +41 44 363 4222 Email: membership@icmagroup.org ICMA - London Office 23 College Hill, London EC4R 2RP, United Kingdom Phone: +44 20 7213 0310 Email: allan.malvar@icmagroup.org ICMA Paris Representative Office 62 rue la Boétie, 75008 Paris, France Phone: +33 1 70 17 64 72 Email: parisoffice@icmagroup.org ICMA Hong Kong Representative Office Unit 3603, Tower 2, Lippo Centre 89 Queensway Admiralty, Hong Kong Phone: +852 2531 6592 Email: mushtaq.kapasi@icmagroup.org 27
ICMA Contacts Chief Executive Martin Scheck: martin.scheck@icmagroup.org Market Practice and Regulatory Policy Paul Richards Managing Director, Head of Market Practice and Regulatory Policy paul.richards@icmagroup.org Legal Department Leland Goss - Managing Director, General Counsel leland.goss@icmagroup.org Membership and Communications Allan Malvar Managing Director, Head of Membership, Executive Education and Corporate Communications allan.malvar@icmagroup.org Sanaa Clausse Director, Business Development sanaa.clausse@icmagroup.org Candice Weinrich Director, Membership candice.weinrich@icmagroup.org Shannelle Rose Head of Events shannelle.rose@icmagroup.org Executive Education David Senior Director, Business Development david.senior@icmagroup.org 28