Throughout the past, the international capital market has grown big in order to cater to the funding requirements of corporates, supernational companies, and governments all around the world. When the markets are expanding beyond geographical boundaries, there is a need to ensure free movement of capital as well. It will facilitate the integration of economics effectively. ICMA is currently working on a mission to facilitate that. In fact, one of the key objectives of ICMA is to integrate different national markets together, while ensuring structural reform. On top of that, it would ensure proper integration of financial and capital markets as well.
The headquarters of ICMA is located in Zurich, Switzerland. The association was discovered back in 1969. As of now, it has got subsidiary offices in London, Hong Kong, and Paris. It has been able to maintain a strong reputation within the international debt market. In the meantime, it focuses on enhancing integration between equity and debt markets and the cash and derivative markets. To achieve that mission, they are working along with numerous trade associations all around the world.
One of the key objectives of ICMA is to promote inclusion and diversity within the workplace. On top of that, ICMA is looking forward to ensuring smooth interactions between all the members. They include working groups, committees, and the events.
ICMA is representing its members all over the world. These members are playing an active role within the international capital market. On top of that, they ensure that smoothness of transactions that they place across the borders are conducted effectively. These members are in a position to represent both the buying entity as well as the selling entity.
History of ICMA
While learning more about ICMA, it is worth taking a look at the history as well. AIBD, which stands for Association of International Bond Dealers was established within the year 1969. The main reason why it was established is to cater to the settlement crisis that took place within the Eurobond market.
During the initial days, AIBD continued to provide a transaction matching system and data services to cater the market needs. 1984 was a prominent year in the history of AIBD. That’s where ICMA came up with a method to offer recommendations related to issuing practices.
The name of AIBD changed to ISMA in the year 1992. ISMA stands for International Securities Market Association. In the year 2005, IPMA and ISMA merged together with the objective of creating the International Capital Market Association, or ICMA.
What does ICMA do?
The mission of ICMA is to promote well-functioning and resilient capital markets. In order to achieve that mission, ICMA is working on numerous initiatives. Here are some of the most prominent services delivered by ICMA with the objective of achieving their mission.
Ensuring trust in the market
ICMA is an association that focuses on the development of trust within the market. This is done by internationally promoting the best practices and standards of going ahead with financial transactions. On top of that, ICMA members are developing the accepted guidelines, recommendations, and rules for ensuring the above-mentioned as well. The members work to ensure a cross-border issuing framework is clearly defined. This will ensure the convenience of all entities who go ahead cross border transactions.
Ensuring smooth flow of information
The team at ICMA would also ensure smooth flow of information between all the participants who belong to different international capital markets. Moreover, ICMA provides an ideal environment for ensuring the flow of information between investors, intermediaries, and borrowers as well. Even law forms, clearing houses, and trading platforms will be able to seek the assistance of ICMA to ensure proper flow of information between the different entities.
Engaging with national and international regulators
Another key service offered by ICMA and its members is engaging with the national and international regulators. On top of that, ICMA is engaging with policy makers as well. Along with those collaborations, they are looking forward to delivering technical knowledge and market expertise to the entities that are in need. This will eventually assist to ensure financial regulation. Along with that, it is possible to promote efficiency, resilience, and roundtables. Likewise, many other events are organized throughout the year with the objective of delivering network opportunities.
Ensuring professional standards
ICMA plays a major role behind ensuring professional standards for the participants of the capital market. This is done by delivering them with appropriate education and training opportunities.
Membership of ICMA
As of now, ICMA has a strong base of members. In other words, ICMA has got 600 members, who are working from over 60 different countries around the world. These members are engaged with the process of both buying and selling of the market. This is truly an international association. It has got strong links with different entities all around the world.
The full members of ICMA are law forms, who are actively working on securities. They include securities dealers and brokers. On top of that, the members of ICMA include issuers, investment banks, asset managers, private banks, commercial banks, and regional banks.
Full members of ICMA also represent trading venues, which include the reputed stock exchanges as well as multilateral trading facilities. The membership of ICMA is open to any organization, which is playing a major role within the market. On the other hand, entities that maintain strong relationships with ICMA are provided the chance to obtain membership as well. They include legal firms and professional advisors.
Now you have a clear understanding on what ICMA is and what they are capable of doing. If you want to obtain the membership of ICMA, you can go ahead and do it. Then it will be possible for you to expose yourself to a variety of great opportunities. These opportunities would contribute a lot towards the future betterment of your organization.