Committees/Subcommittees
ASIFMA Committee List:
- Government Securities
- Funding
- Credit Market
- Securitisation and structured credit
- General / Cross Market
Government Securities Division
Chair: Justin Chan, Head of Hong Kong Trading, Global Markets, HSBC
Objective: Promote liquid, deep, transparent, fair and efficient government securities markets.
Support Staff: Nicholas de Boursac, Managing Director, ASIFMA
- China: ASFIMA is advocating for the early establishing of a government bond futures market, an improved repo market, a better trading platform with increased anonymity in trading. Harmonising the Treasury Bonds issue by the Ministry of Finance with the Monetary Stabilisation Bonds issued by the Peoples Bank of China so they are fungible and traded as one market would add depth to the market.
- Korea: ASIFMA has been advocating for the elimination of withholding tax paid by foreign investors on Korea Treasury Bonds and Monetary Stabilisation Bonds. The Korea Parliament is expected to debate this step in April 2009. If the motion passes this will come into effect within a few months. (see: Discussion Paper on Taxation of Income from Government Bond ) ASIFMA is also advocating for the changes in regulations which would allow the selling of government bonds short, which is currently not allowed in Korea.
- India: ASIFMA is advocating for the early launch of a new government bond futures contract. This is expected in the second quarter of 2009. ASIFMA is reviewing with members what other steps might be useful to the further development of the liquidity in the Indian government bond market.
- Pan Asian: ASIFMA organised a meeting of senior officials from the Public Debt Management Offices of several Asian countries in February 2008. The last event was hosted by the Thai PDMO in April 2009; ASIFMA members provided the private sector input to this conference.
Chair: Alexander Blanchard, Executive Director, Fixed Income, Currency & Commodities, Goldman Sachs
Vice-Chair: Bernard Chin, Head of Asia Short Duration Sales, UBS
Objective: Promote development of highly efficient and liquid repurchase agreement (“repo”) markets.
Support Staff: Nicholas de Boursac, Managing Director, ASIFMA
- China: There is a need to improve the domestic RMB repo market, 85% are currently “pledge repos”. Netting and sett off provision in bankruptcy are currently not enforceable and ASIFMA is advocating for this to be changed. Together with the China Government Depository Trust and Clearing Corporation, ASIFMA organized a repo conference in Guilin in March 2007. ASIFMA has also translated GMRA and the Global Master Securities Lending Agreement (GMSLA) into Chinese.
- Korea: ASIFMA continues to work with Korean regulatory agencies and KSD to develop the Korean repo market. ASIFMA established a working group which proposed amendments to the Korea Securities Dealers Association (KSDA) repo agreement, which were adopted in their entirety, with the new agreement receiving the required approvals and subsequently published in October 2008 (translation in English soon available). ASIFMA is also working with members to develop a Korea annex to GMRA. Many operational, legal and tax issues inhibiting the development of the repo market have been addressed by the Korean authorities. ASIFMA held a “repo 101” seminar in Seoul on November 24 – 25, 2009.
- India: ASIFMA is pushing for further development of the Indian repo market.
Chair: Frank Kwong, Director, Head of Syndicate Asia, BNP Paribas
Co-Chair: Pius Chong, Managing Director and Head of Transaction Management, Asia Pacific, HSBC.
Objective: Promote development of Asian credit markets.
Support Staff: William Sage, Executive Director, ASIFMA
- China: The Credit Markets China Working Group obtained clarification in respect to regulations concerning the ability of foreign banks to trade and underwrite corporate bond products on the Chinese interbank market, which since January 2009 is now allowed. ASIFMA will be working with relevant regulators and government agencies to assist with the implementation of this directive. (See: The Fifth U.S.--China Strategic Economic DialogueJoint U.S.—China Fact Sheet) ASIFMA also provided various regulators with a report on frameworks for international bond markets which resulted on ASIFMA working with the CSRC on issues related to credit rating agencies.
- India: ASIFMA is advocating for the development of a functioning and liquid corporate bond market, which is a priority for members in India.
Securitization and Structured Credit Division
Chair: TBC
Objective: Promote development of securitisation and structured products.
Support Staff: William Sage, Executive Director, ASIFMA
- Securitisation Committee: The committee has initiated a series of dial-in conferences where market participants review the current status of the securitization markets in Asia. ASIFMA is advocating with regulators for the development of a securitization market in China.
- Covered Bonds Working Group: ASIFMA produced a report on European covered bonds legislative framework and is assisting Korean regulators in creation of a covered bonds framework in Korea. A series of conferences/workshop to promote a better understanding in Asia of covered bonds is being prepared.
Objective: Address issues that cross several product areas or are not captured by one of the other divisions.
Support Staff: Nicholas de Boursac, Managing Director, ASIFMA and William Sage, Executive Director, ASIFMA
- Women in Finance, Asia (WiF) Initiative: ASIFMA and a number of women’s networks within member firms formed the ASIFMA Women in Finance Forum late last year to provide a forum for women in the finance industry in Asia to network, promote mentoring, provide topical education and training seminars, share best practices and eventually move towards philanthropic activities.
- Accounting Arrangement letters: ASIFMA is working with SIFMA in London to develop a pro-forma arrangement letter for debt and equity capital markets transaction and seek agreement with the accounting community.
- ASIFMA Discusion Paper: The Importance of Short-Selling to Government Bond Markets
- ASIFMA's Discussion Paper on Taxation of Income from Government Bond and its effects - August 2008
- Chinese Translations of the GMSLA and GMRA:
通用证券借贷主协议 - 中文版 Global Master Securities Lending Agreement (GMSLA): Chinese version (pdf)通用回购主协议 - 中文版 / Global Master Repurchase Agreement (GMRA): Chinese version (pdf)
- Best Practices released: Global principles address wide range of issues affecting distribution of structured products to individual investors: Structured Products: Principles for Managing the Distributor-Individual Investor Relationship (pdf) - July 2008
Activities
- Upcoming activities to be listed shortly.