ICMA publishes CSDR briefing paper
26 July 2018 Zurich
Image: Shutterstock
The International Capital Market Association (ICMA) has published an information brochure on CSD Regulation (CSDR) mandatory buy-ins.
Not to be confused with ICMA’s other recent report titled ‘How to survive in a mandatory buy-in world’, this four-page document briefly summarises the CSDR.
It also details, amongst other elements, who is affected by it, what constitutes a buy-in and sets out the mandatory buy-in time-frame.
The CSDR buy-in provisions are expected to come into force in September 2020 and will also apply to non-EU/EEA-domiciled trading entities, noted ICMA.
ICMA explained that the brochure is part of its ongoing work to ensure industry awareness and preparedness in the international cross-border fixed income markets.
The association has also drawn the attention of its members to a paper recently published by the Bank of England (BoE).
The paper relates to new issuance of sterling bonds referencing London interbank offered rate (LIBOR) by the working group on Sterling Risk-Free Reference Rates.
ICMA said the considerations in the paper are likely to have relevance for issuance of international floating rate bonds in all currencies for which LIBOR is quoted.
The association added that it is playing an important role in the work that is underway globally to transition away from LIBORs generally and towards risk-free rates.
As part of that, Paul Richards, ICMA’s head of market practice and regulatory policy, chairs the Sterling Risk-Free Rate Bond Market sub-group and is a member of the working group behind the BoE paper.
Not to be confused with ICMA’s other recent report titled ‘How to survive in a mandatory buy-in world’, this four-page document briefly summarises the CSDR.
It also details, amongst other elements, who is affected by it, what constitutes a buy-in and sets out the mandatory buy-in time-frame.
The CSDR buy-in provisions are expected to come into force in September 2020 and will also apply to non-EU/EEA-domiciled trading entities, noted ICMA.
ICMA explained that the brochure is part of its ongoing work to ensure industry awareness and preparedness in the international cross-border fixed income markets.
The association has also drawn the attention of its members to a paper recently published by the Bank of England (BoE).
The paper relates to new issuance of sterling bonds referencing London interbank offered rate (LIBOR) by the working group on Sterling Risk-Free Reference Rates.
ICMA said the considerations in the paper are likely to have relevance for issuance of international floating rate bonds in all currencies for which LIBOR is quoted.
The association added that it is playing an important role in the work that is underway globally to transition away from LIBORs generally and towards risk-free rates.
As part of that, Paul Richards, ICMA’s head of market practice and regulatory policy, chairs the Sterling Risk-Free Rate Bond Market sub-group and is a member of the working group behind the BoE paper.
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