Initiatives | Resources

Initiatives


China

  1. Advocate for foreign owned banks to be allowed to trade corporate bonds on the interbank market with non-bank clients. Link to : The Fifth U.S.--China Strategic Economic DialogueJoint U.S.—China Fact Sheet
  2. Advocate for foreign owned banks to be able to underwrite corporate bonds.
  3. Advocate for foreign owned banks to be able to settle bond sales directly (bond settlement agent level 1 status).
  4. Advocate for the elimination/amendment of/to the Business Tax on trading in financial instruments.
  5. Advocate for more foreign owned banks to be appointed Market Makers and for an evaluation of Market Makers on the basis of contribution to liquidity.
  6. Advocate for the de-linking of Market Maker status and the ability to execute swaps with non-bank clients.
  7. Improve the domestic repo market:
    1. Assist NAFMII in the development of Chinese Repo Master agreement.
    2. Assist in the evaluation of the benefits of a central counterparty system for repos.
    3. Advocate for legislation that would require close-out netting in bankruptcy.
    4. Advocate for better tax and accounting treatment for repos.
    5. Educate the market participants on best practices in global repo markets.
  8. Advocate for separate (and incremental) QFII limits for fixed income and other measures to facilitate cross border investment in RMB bonds.

Other initiatives

  1. Advocate for the elimination of tax on PBOC bonds so they can be fungible with MoF bonds.
  2. Promote the development of a government bond futures market.
  3. Advocate for clarification of the tax treatment of QFI income and capital gains.

 

Korea

  1. Promoting the development of a repo market in Korea:

      2. i) Shorting of KTB and MSB by banks is still not allowed. We expect new rules in the first half of 2010.

      ii) We are suggesting to KSD that they further adjust their repo rules to be more in line with global practices (reduces the need for a Korean Annex to the GMRA).

      iii) Support the growth of the term repo market.

  2. Support the link between KSD and ICSDs and the use of multi-tiered omnibus accounts for KTBs and MSBs:

      3. i) Advocate for further changes in FX regulations that would make investments in KTB and their funding seamless and timely.

      ii) Advocate for changes to market practice that would allow investors to transact the required FX with ease.

      iii) Review other operational issues affecting cross-border investments and repos.

  3. Promote measures that would accelerate the inclusion of the Korean Government Bonds in the WGBI.

Other initiatives

  1. Advocating for the consolidation of the issuance of KTB and MSB into fungible instruments to provide a deeper market (also National Housing Bonds, Seoul Metropolitan Subway Bonds etc.).
  2. Assisting in the development of a covered bond market in Korea.
  3. Promote measures the will reduce risk and leverage (e.g. TriOptima swap termination).
  4. Educate market participants on international repo practices.
  5. Support the move from the current Yahoo Messenger communication system to a more robust infrastructure which is more fully integrated with members’ in-house systems, possibly with a greater role for inter-dealer brokers.
  6. Advocate for the exemption from domestic withholding tax on government bonds.
  7. Review the structure of the inflation indexed bonds to improve their liquidity.
  8. Support the development of a double tax treaty between Korea and Hong Kong (or Singapore).
  9. Advocate for the elimination of withholding tax on domestic corporate bonds and MTN.
  10. Review with NTS the remaining criteria for Tax Residency confirmation with a view to moving to self-certification.

 

India

  1. Promote the development of a wider investor base:
    1. Increasing and making more user friendly the FII limits for fixed income.
    2. Advocate for the elimination of withholding tax on government (and possibly corporate bonds).
    3. Promote the development of the institutional savings sector and their investment in the bond markets.
  2. Promote measures that would assist the development of a term G. Sec. repo market.
  3. Promote the development of a floating rate benchmark for floating rate bonds.
  4. Advocate for banks to be allowed to arrange bank guaranteed bonds for corporate clients.
  5. Advocate for banks to be allowed to issue senior debt.
  6. Encourage the development of standard terms and conditions in the corporate bond markets (e.g. an agreed day-count convention).
  7. Advocate for changes to stamp duty and other taxes that would contribute to improved liquidity.

Other initiatives

  1. Advocate for the development of a securitization market:
    1. For changes to the tax treatment of SPVs.
    2. For the required changes to the regulations that have a negative impact on the economics of securitization (minimum holding period, minimum retention amount, etc.).
  2. Promote the changes required to the government bond futures market to improve its liquidity.
  3. Educate the market participants on best practices in global repo markets.
  4. Contribute to member firms’ efforts to advocate for changes to the Direct Tax Code that would result in improved markets.

 

Pan Asia or Other

  1. Provide the relevant officials with the industry perspective on the global regulatory reforms being discussed at G20, FSB and IOSCO.
  2. Continue to be engaged in the (now) ADB-led Public Debt Management Offices annual workshop on debt issuance management.
  3. Provide industry input to the ADB led review of a securities Asia settlement solution (e.g. regional settlement intermediary).
  4. Develop standard arrangement and comfort letter with accounting firms.
  5. Advocate for the elimination of withholding tax on government and corporate bonds.