ICMAGroup, which is also known as International Capital Market Association Group is the self-regulatory organization as well as the trade association, which is responsible for managing participants who are taking part in the capital markets.
The main objective of ICMAGroup is to ensure the delivery of market practices with highest standards. On the other hand, we can see how ICMAGroup is offering trade support, implementing regulations, and ensuring proper communication and education. We will also be able to see how ICMAGroup is responsible for producing standard documentation needed for the transactions such as debt issuance, equity, and repos.
What are the pillars of ICMAGroup?
The pillars of ICMAGroup are the conventions and standards that it is maintaining. In fact, these pillars have been benefiting the ICMAGroup for a duration of over 40 years. Along with that, we can also see how it has been provided with a self-regulatory framework that contains the rules that govern the market practices.
This would ensure proper functioning of the capital markets. On top of that, it is also contributing a lot towards the successful growth of the market.
History of ICMAGroup
The ICMAGroup was established back in the year 2005. This was created from the merger of International Securities Market Association and International Primary Market Association. They wanted to merge and develop a new association, which is catering to the needs of the primary international capital market as well as the secondary international capital market. All their efforts became successful with the establishment of ICMAGroup.
The roots of the ICMAGroup goes all the back to the early 1960s. In fact, the base of ICMAGroup is within the Eurobond market. Eurobonds went ahead and create a new market, along with borrowing United States dollars offshore. This was done with the objective of avoiding the tax regulations of the United States.
However, this led them to numerous other problems. These problems were related to regulation and settlement of money in different jurisdictions. In order to respond to this issue, bond dealers who represent different securities firms and banks went ahead and developed the Association of International Bond Dealers. This was done in the year 1969.
During the next few years, AIBD went ahead and developed a new series of recommendations and rules with related to the governing market practices. These were in a position to deliver enhanced stability to the international capital market.
During the 1980s, the AIBD developed a new set of recommendations and rules to the governing market practices that were present at that time. They were able to deliver more stability to the international capital market as well. During the same time period, the AIBD even started to offer data services to the people who were in need of it in the capital.
Along with that, they were able to launch a new system, which was known as the transaction matching, confirmation, and regulatory reporting system. This was done in the year 1989. The name of this system was TRAX. However, the name of AIBD was changed to International Securities Market Association back in the year 1992. This is where people started calling it as ISMA.
Progression of ICMAGroup in the recent past
During 2009, we could see how ICMA went ahead and sold the market services businesses that it had to Euroclear. Along with that, we could also see how it sold TRAX. In the year 2014, ICMA was able to publish the ICMA Private Wealth Management Charter of Quality, which is a regulatory document designed specifically for the use of wealth managers. This was in a position to deliver the best practices that wealth managers will be able to adhere to, as they go ahead with cross border private banking activities.
Along with time, the charter was able to remain consistent with the national level regulations as well as the international level regulations. In the meantime, it was able to complement according to the industry standards as well.
For example, we could see how it was adhering to the WolfsburgPrinciples on ant-money laundering. This is where very first time where we could see how the private wealth management got in touch with the others to adhere to a set of common standards. These common standards were able to maintain compliance, quality, as well as the good market practices.
The mission and purpose of ICMAGroup as of now
As of now, the ICMAGroup is providing resilient as well as properly functional cross border standards for the international debt securities market. They are highly important for the proper economic growth as well as developments that are taking place.
In the meantime, we an see how ICMAGroup is going ahead with building trust within the market. This is done by promoting the internationally accepted standards and the best practices of new developments through appropriate guidelines, recommendations, and rules.
On top of that, we can also see how the presence of standard documentation is contributing a lot towards the future progression of the debt securities. Hence, people who are interested in investing in debt securities will not have to go through confusing situations.
All the core areas of ICMAGroup are engaging along with the national regulators and international regulators. On top of that, ICMAGroup is engaging with the policy makers and national regulators as well.
This is helping them to deliver technical expertise as well as market expertise. This would ensure the presence of appropriate financial regulations, which would eventually promote resilience, cost-effectiveness, and efficiency of the international capital markets.
On top of all these, the ICMAGroup is offering some excellent networking opportunities for all the market participants. This is done through roundtables, seminars, conferences, and other related events.
In the meantime, we can see how they are promoting highest levels of professional standards for the participants of capital markets. This is done with proper education and training opportunities. ICMAGroup will continue to do this in the future as well.
