Definition
International Capital Market Association (ICMA): The ICMA is a trade association and a self-regulatory organization that involves a wide range of financial institutions and entities in the international capital market. Its purpose is to foster the long-term stability and effectiveness of capital markets, focusing on sound market practices, regulatory advocacy, and fostering cooperation among international capital market participants.
Examples
- Secondary Market Practices: The ICMA develops and enforces rules and guidelines for the trading and secondary market activities of international capital market products, particularly fixed-income securities.
- Publications: It publishes standard documentation and guidelines that market participants can use to ensure they are complying with market regulations and best practices. For instance, the ICMA Primary Market Handbook offers comprehensive guidelines on the issuance of debt securities.
- Event Hosting: The ICMA organizes events, seminars, and workshops that provide networking opportunities and educative experiences for capital market professionals and regulatory authorities.
FAQs
Q1: What is the primary role of the ICMA? A1: The ICMA primarily aims to promote efficient and resilient international capital markets by setting industry standards, advocating sound regulatory practices, and providing members with key sector insights and education.
Q2: Who can become a member of the ICMA? A2: Membership in the ICMA is open to a broad range of financial institutions, including banks, asset managers, law firms, and other entities involved in the capital markets.
Q3: How does the ICMA influence capital market regulations? A3: The ICMA engages in active dialogue with regulators and policymakers to ensure that the interests and insights of market participants are considered in the regulatory process. They participate in consultations and provide feedback to proposals for new regulations and amendments.
Q4: Does the ICMA only focus on European markets? A4: While the ICMA has a strong presence in Europe, it operates globally, providing standards and advocacy for international capital markets.
Related Terms with Definitions
- Capital Markets: These are markets where buyers and sellers engage in the trade of financial securities, including equities and bonds.
- Self-Regulatory Organization (SRO): A non-governmental organization that has the power to create and enforce industry regulations and standards.
- Fixed-Income Securities: Financial instruments that provide returns in the form of regular, or fixed, interest payments and are typically issued by governments and companies.
- Primary Market: The market where securities are created and issued to investors directly by the issuer.
Online Resources
- International Capital Market Association Official Website
- ICMA: Taking Capital Market Interaction to a Better Level
- Financial Markets Authority – Guidelines and Standards
- International Financial Reporting Standards
Suggested Books for Further Studies
- “The Art of Credit Derivatives: Demystifying the Black Swan” by Sergio Scandizzo
- “Fixed Income Analysis” by Barbara S. Petitt
- “Capital Markets: Institutions and Instruments” by Frank J. Fabozzi
Accounting Basics: “International Capital Market Association (ICMA)” Fundamentals Quiz
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