- Primary markets :
- ICMA Primary Market Handbook - Home
- ICMA Primary Market Practices Committee
- ICMA Legal and Documentation Committee
- ICMA Euro Commercial Paper (ECP) Committee
- Public Sector Issuer Forum (PSIF)
- ICMA Corporate Issuer Forum (CIF)
- ICMA Financial Institution Issuer Forum
- Private placements
- Infrastructure financing
- Prospectuses, offerings and listings
- Periodic reporting / continuing obligations
- Market abuse - primary markets
- Accounting and auditing
- Retail structured products
- Collective action clauses
- Dialogue with investors
- Bank capital
- Secondary markets :
- ICMA’s rules and recommendations for the secondary market
- ICMA Secondary Market Practices Committee
- Secondary Market Practices Committee Terms of Reference
- Studies on the state and evolution of the European investment grade bond market
- ICE Data Services Corporate Bond Market Liquidity Tracker
- Aged-fails auction initiative
- ECB Corporate Sector Purchase Programme
- Market Abuse Regulation (MAR) - investment recommendations
- CSDR settlement discipline
- MiFID II
- Short selling
- Repo and collateral markets :
- Global Master Repurchase Agreement (GMRA)
- ICMA ERC Guide to Best Practice in the European Repo Market
- ICMA GMRA legal opinions
- ICMA European Repo and Collateral Council
- ICMA International Repo and Collateral Council and Committee
- ICMA ERCC members
- ICMA European Repo and Collateral Committee
- Minutes and presentations of council and committee meetings
- ICMA repo market events calendar
- ICMA European Repo and Collateral Council - mailing list subscription
- Frequently Asked Questions on Repo
- ERCC contributions to public consultations
- ICMA European repo market reports and articles
- Repo market surveys
- FAQs on the GMRAs
- Credit claims
- Securities lending
- Asset management :
- ICMA Asset Management and Investors Council (AMIC)
- ICMA AMIC Covered Bond Investor Council (CBIC)
- Covered bonds
- Money market funds
- Hedge funds
- Managing client expectations
- Corporate governance
- Valuation of illiquid assets
- Specific regulatory issues
- Exchange-Traded Funds (ETFs)
- AMIC Solvency II Working Group
- ICMA Private Wealth Management Charter of Quality
- The Future of the Savings Industry
- Green bonds :
- Market infrastructure :
- Distributed Ledger Technology
- European Commission’s Expert Group on Market Infrastructure (EGMI)
- Code of Conduct on clearing and settlement
- CPSS/IOSCO principles for financial market infrastructures
- European Market Infrastructure Regulation (EMIR)
- Harmonisation of securities law
- CSD regulation: migration to T+2
- New Global Note (bearer notes)
- New Safekeeping Structure (registered notes)
- Implications for ICMA members of the UK vote to leave the EU :
- Capital Markets Union :
- Fair and Effective Markets Review :
- Other projects :
- ICMA Quarterly Report :
- ICMA Regulatory Grid and practical initiatives :
- Market Practice & Regulatory Policy
- Secondary markets
Secondary marketsICMA as a self regulatory organisation and trade association initiates standard practices to help develop efficient and well-functioning secondary markets. The secondary market for trading in fixed income products remains largely over the counter (OTC).
ICMA’s rules and recommendations for the secondary market (available to members and subscribers) apply to transactions in international securities – an international security is defined as a security intended to be traded on an international, cross-border basis (i.e. between parties in different countries) and capable of settlement through an international central securities depository or equivalent. ICMA supports members with advice and guidance on the application of the rules and recommendations through its Legal & Regulatory Helpdesk.
There has been increasing concern and attention focused on corporate bond market quality and liquidity, and the ability for credit markets to function effectively and efficiently. This is at the very core of ICMA’s secondary market work, engaging with market practitioners and stakeholders, including broker-dealers, investors and asset managers, corporate issuers, and infrastructure providers, as well as policy makers and regulators, to help better understand the issues and the challenges, and to work together to find constructive solutions to ensure safer, functioning, liquid secondary markets.
The key member committee in this area is
Scope and functions
The SMPC is a trading committee focused on the European corporate bond secondary market. Its four key functions are:
- Agreeing best practice for the corporate bond secondary market.
- Maintaining and developing the ICMA Rules and Recommendations for the secondary market (‘The ICMA Rule Book’) 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.
The SMPC is currently an open forum for ICMA member firms engaged in corporate bond secondary markets. At a future date, the Committee will be formalized to compose of core members and auxiliary members. The core members will be senior European corporate bond traders from member firms, including both sell-side (broker-dealers) and buy-side (execution desks). Core membership will be limited to one representative from each member firm. Auxiliary members will be market experts from member firms who participate in relevant sub-committee Working Groups. These could include operational experts and representatives of infrastructure and other services providers. There will be no restriction on the number of auxiliary members from an individual member firm.
The SMPC’s main work-stream priorities for 2016 are:
- A white paper on the development of electronic trading and the evolution of the structure of the European bond markets.
- An updated study on the current state and future evolution of the European corporate bond market.
- A review of the ICMA secondary market buy-in rules to create a more efficient and transparent process, as well as allowing for the possibility of a buy-in auction mechanism.
- The development of an auction mechanism to clear-up aged fails and avoid buy-ins (the ‘Aged-Fails Auction Initiative’), which will serve as the prototype for a buy-in auction mechanism.
- Ongoing advocacy related to critical aspects of MiFID II, CSDR-SD, as well as other relevant regulatory initiatives that affect the quality and liquidity of the market.
Senior Director, Market Practice and Regulatory Policy; Secretary to the Secondary Market Practices Committee
Direct line: +44 20 7213 0335
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Director, Market Practice and Regulatory Policy; Secondary Markets
Direct line: +44 20 7213 0313
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Associate, Market Practice and Regulatory Policy; Secondary and Short-Term Markets
Direct line: +44 20 7213 0333
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