International Capital Market Association (ICMA)
Definition
The International Capital Market Association (ICMA) is a trade association and self-regulatory organization that represents participants in all aspects of the international debt capital market. This includes banks, exchanges, dealers and brokers, asset managers, and investors. ICMA plays a crucial role in fostering the development and efficient functioning of the capital markets through regulatory advocacy, development of market standards, and provision of education and training.
Formation and History
ICMA was formed in 2005 through the merger of two prominent organizations: the International Securities Market Association (ISMA) and the International Primary Market Association (IPMA). The headquarters of ICMA is located in Zürich, Switzerland. The organization extends its services and influence primarily within the European market, although its reach and standards impact global market practices.
Examples
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Market Standards: ICMA is instrumental in developing and maintaining codes of conduct and best market practices. For example, ICMA’s Primary Market Handbook is an essential guide for market conduct in the issuance of international capital market securities.
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Regulatory Advocacy: ICMA regularly engages with regulators and policymakers to represent the interests of its members. This includes contributing to consultations and discussions on market regulation and financial legislation.
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Educational Programs: ICMA also offers a wide array of seminars, workshops, and training programs aimed at enhancing market participants’ understanding of capital markets.
Frequently Asked Questions (FAQs)
Q1: What is the main purpose of the ICMA?
- A1: The main purpose of ICMA is to promote the development and efficient functioning of the international debt capital market, ensuring that it operates openly and smoothly while representing the interests of its members.
Q2: Who can become a member of ICMA?
- A2: Membership is open to all institutions actively involved in the international capital markets, such as banks, exchanges, brokers and dealers, asset managers, investors, and service providers.
Q3: How does ICMA support market participants?
- A3: ICMA supports market participants by advocating for regulatory policies, offering training and education programs, providing a framework of best practices, and facilitating dialogue within the industry.
Q4: Where is ICMA headquartered?
- A4: ICMA is headquartered in Zürich, Switzerland.
Q5: Is ICMA’s influence limited to Europe?
- A5: While ICMA primarily focuses on the European market, its standards and practices have a significant impact on global market practices as well.
Related Terms
- Debt Capital Market (DCM): A market where organizations can raise funds through the issuance of debt securities such as bonds.
- Primary Market: The market where new securities are issued and sold to investors for the first time.
- Regulatory Advocacy: Activities undertaken to influence regulatory policies in favor of a particular cause or sector.
- Market Standards: Established norms or guidelines that govern the conduct and operations within a specific market.
Online Resources
Suggested Books for Further Studies
- “Fixed Income Analysis” by Barbara S. Petitt
- “The Handbook of European Fixed Income Markets” by Frank Fabozzi, Moorad Choudhry, and Steven V. Mann
- “International Finance: A Survey” by Levi Maurice D
Accounting Basics: “International Capital Market Association (ICMA)” Fundamentals Quiz
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