International Capital Market Practice and Regulation
Summary of practical initiatives by ICMA The purpose of this section of the Quarterly Report is to summarise recent and current practical initiatives by ICMA with – and on behalf of – members.
Primary markets 1
2
ICMA Public Sector Issuer Forum: At its meeting in Dublin on 16 March 2022, the Public Sector Issuer Forum received a presentation on the ECB’s monetary policy from Philip Lane, Chief Economist of the ECB and Member of the ECB’s Executive Board, followed by discussion. The agenda also included updates on sustainable finance and the transition from LIBOR to risk-free rates. ICMA Corporate Issuer Forum (CIF) and Financial Institution Issuer Forum (FIIF): At its meetings on 3 February and 9 February 2022 respectively, the CIF and FIIF were requested to respond to a member survey to help steer the future direction of these groups.
3
ICMA CIF Newsletter: ICMA’s CIF Newsletter is published three times per year. The latest version is available here.
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ECB DIMCG Report: ICMA participated in the advisory group which issued in December 2021 the ECB Debt Issuance Market Contact Group Advisory Report (DIMCG) to the ECB. The report recommended a number of practical improvements to achieve greater harmonisation and efficiency for SSA primary debt issuance and distribution in the euro area.
5
EU Listing Act: In February 2022, ICMA responded to the European Commission’s Listing Act consultation, including on the EU Prospectus Regulation, EU MAR and EU Transparency Directive.
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UK consumer duty: In February 2022, ICMA responded to the UK FCA consultation on a proposed new consumer duty.
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ICSDs’ new syndicated closing model: Following an ICMA paper, which was published in October 2021, the ICSDs’ new syndicated closing model was launched on 14 March 2022.
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Hong Kong SFC Code of Conduct: Following ICMA’s statement on the Hong Kong SFC Code on Bookbuilding and Placing, ICMA started to engage directly with the SFC in March, ahead of the implementation date in August 2022.
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9
Monetary Authority of Singapore due diligence consultation: On 15 February 2022, ICMA responded to a Monetary Authority of Singapore consultation on the introduction of due diligence requirements for corporate finance advisers.
10 ICMA Primary Market Handbook: ICMA has updated the ICMA Primary Market Handbook to cater more fully for issues of ECP and FRNs referencing risk-free rates and to make certain other updates. 11 Primary markets technology directory: In January 2022, ICMA published the latest version of its primary markets technology directory, which covers over 45 solutions available to automate all or part of the process of issuing debt securities. 12 Common data dictionary: On 1 April 2022, ICMA held a follow-up meeting to its roundtable in December with market stakeholders to discuss a common data dictionary, which aims to promote STP and interoperability between the ever-growing number of vendor solutions.
Secondary markets 13 CSDR cash penalties: In February 2022, ICMA published a set of ICMA FAQs and Best Practice Recommendations on CSDR Cash Penalties to support implementation in the international bond and repo markets. ICMA’s CSDR Settlement Discipline Working Group is monitoring implementation and will be updating guidance as the new regulatory regime beds in. 14 CSDR mandatory buy-ins: ICMA is reviewing the European Commission’s revised proposal for an EU mandatory buyin (MBI) regime, which was published in March 2022. ICMA is currently drafting its formal response to the proposal and will also develop an appropriate advocacy strategy in coordination with its members. 15 MiFID II bond market transparency regime: ICMA is engaging with regulators on the ICMA Proposal for a New Post-Trade Transparency Regime for the EU Corporate Bond Market to support a consolidated tape. 16 AMCC Bond Market Liquidity Working Party (BMLWP): In its capacity as Chair of the AMCC Bond Market Liquidity Working Party, ICMA oversaw publication of
