20th ASEAN+3 Bond Market Forum (ABMF) Sands Expo and Convention Centre Marina Bay Sands, Singapore Sibos: 12-15 October ABMF meeting: 15-16 October 2015 TIME PROGRAM Programs recommended for the members to participate 12 October (Monday) Standards 09:00-09:45 How does ISO 20022 enable innovation in Asia Pacific? Forum Global trends in regulated securities markets: how to 09:00-09:45 Securities return to a path of growth? Standards 13:00-13:45 The top five benefits of ISO 20022: a 360 degree view Forum 14:00-15:15 Opening Plenary SIBOS Introduction to SWIFT's ISO 20022 harmonization Standards 15:30-16:15 framework Forum 15:30-17:00 A future for CSDs? MI Forum 13 October (Tuesday) Planning your ISO 20022 implementation: Myths, best Standards 09:00--9:45 practice and advice Forum Standardising the standard: the need for global ISO 20022 Standards 10:15-11:15 market practice Forum Securities, Securities market infrastructure innovation: the next 10:15-11:15 Market frontier Infrastructure Market infrastructures update: ISO 20022 plans and Standards 13:00-13:45 visions Forum Standards 14:00-14:45 MyStandards: a platform for ISO 20022 harmonization Forum Securities, Breaking the silos: Building a global assets inventory to 14:00-15:00 Standards optimize collateral management Forum 14:30-15:00 Cross-Border Stock Market Links in Asia: What Makes SWIFT Page 1 of 3 20th ABMF meeting agenda as of 6-Oct-2015 TIME PROGRAM One a Success? Institute Driving the industry towards a truly global ISO 20022 MI Forum, 15:30-16:30 standard SF ISO 20022 Harmonization ceremony, followed by Harmony Standards 16:45-18:00 Drink Forum 14 October (Wednesday) Compliance 09:00-09:45 Securities transparency: is this the next frontier? Forum, Securities Securities 14:00-15:15 Asset Servicing: Issuer to Investor automation Workshop 15:30-16:30 The changing landscape of Singapore’s securities market Community ABMF Official meeting 15 October (Thursday) SIBOS registration required 9:00-10-00 Opening ASEAN day ASEAN 10:15-11:15 ASEAN Leaders in Conversation ASEAN 11:30-12:30 RMB: The real game changer ASEAN How ASEAN+3 connects Bond markets towards more integrated markets - Presentation by Satoru Yamadera, ADB - Panel discussion 12:45-13:45 Community Panelists from ABMF members (tbc) - Q&A Securities Workshop Regional Market Infrastructure Linkages – the way forward In the past decade, we have witnessed a steady formation of linkages of market infrastructures in the region, albeit multi-laterally or bilaterally. Asian examples such as the 14:00-15:30 ASEAN ASEAN Trading Link, the Shanghai-Hong Kong Stock Connect, Taiwan-Singapore Link and the CSIF Regional Settlement Infrastructure, have been both the subject of anticipation and scrutiny by regional participants. We will address the efforts to facilitate cross border trading and attract foreign fund flows. Page 2 of 3 20th ABMF meeting agenda as of 6-Oct-2015 TIME PROGRAM 16:00-17:30 Closing Plenary SIBOS 16 October (Friday) Venue: Level 4, Melati Room (4002-4004 and 4102-4104) 08:15-08:45 Registration ABMF informal sessions (CSIF members are invited to join) Welcome Address by Mr. Alain Raes, Chief Executive Asia Pacific & EMEA, 08:45 09:00 – SWIFT Sub-Forum 1 09:00 – 09:05 Opening Remarks by Mr. Koji Ito, SF1 Chair Session 1: Reporting on ASEAN+3 Multi-currency Bond Issuance Framework, New Working Groups, and Bond Market Guide 09:05 10:00 – by Mr. Satoru (Tomo) Yamadera, ADB Secretariat Sub-Forum 2 10:00 – 10:05 Opening Remarks by Mr. Jong Hyung Lee , SF2 Chair Session 2: Implementation of ISO 20022 Lessons to be learnt from the other region By Mr. Marc Byle, ECB 10:05-11:15 Mr. Mehdi Manaa, ECB Mr. Philippe Leblanc, BdF Federal Reserve Bank (tbc) 11:15-11:30 Coffee break Updating Implementation of ISO 20022 in ASEAN+3 11:30- 12:00 By Dr. Taiji Inui, ADB Consultant - Discussion with colleagues from other regions Session 3: Extensive application of standards 12:00 – 13:00 By Ms. Karla McKenna, TC68 Chair, Mr. Gerard Hartsink, The Chair of Global LEI Foundation 13:00-13:10 Wrap up by Mr. Satoru Yamadera, ADB secretariat Lunch 13:10 14:00 – Level 4, Orchid Ballroom (4202-4203 and 4302-4303) Page 3 of 3 20th ABMF meeting agenda as of 6-Oct-2015 ADB – How ASEAN+3 can connets bonds markets in the region? ADB – How ASEAN+3 can connets bonds markets in the region? How ASEAN+3 connects Bond markets towards more integrated markets Satoru (Tomo) Yamadera, Principal Financial Sector Specialist, SDCC, ADB 4 Outline 1. Asian Bond Markets Initiative (ABMI) 2. ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF) 3. Standardization efforts to integrate the markets 4. Cross-border Settlement Infrastructure Forum (CSIF) 5. Next step 5 Asian Bond Markets Initiatives (ABMI) (Chairman's Press Release on the Asian Bond Markets Initiative, 7 August 2003) • ABMI aims to develop efficient and liquid bond markets in Asia, which would enable better utilization of Asian savings for Asian investments. • The ABMI would also contribute to the mitigation of currency and maturity mismatches in financing. - ABMI contributes to financial stability by creating multiple channels of financing 6 Growth of ASEAN+3 LCY bonds Growth of Local Currency Bond (excl. JP) 8 Trillion Global Financial Crisis Asian Currency Crisis Source: Asia Bonds Online 7 Size of Local Currency Bond Markets Source：ASIFMA（2013）India Bond Market Roadmap Note: The figure over the bar is share of corporate bonds to GDP 8 ABMI Evolution CMIM ($120 Billion) – AMRO <Macroeconomic stability> Stronger Regional Global Financial economic Crisis safety net Bond markets as a linkages and spare tire of synchronization ASEAN financial banking systems of markets integration Linking the + PRC, JPN, KOR Addressing fragmented the problem markets for a more resilient CSD-RTGS Linkages of double Promoting regional market AMBIF+ mismatch development of AMBIF domestic markets More advanced financial Inter-operable infrastructures ABO market Asian CGIF infrastructures Currency Crisis 9 ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF) 10 AMBIF as a regional nexus Homogeneous ASEAN+3 (Professional) Multi-currency Bond Issuance Framework ꞊ International bond market Domestic bond markets Heterogeneous Local International (Retail) • Due to different degrees of market developments, it is not practical to have a fully standardized bond issuance framework. • But, common elements may allow connecting the domestic bond markets across the region. 11 What AMBIF can achieve? Public Offering Market Professional Investors Market Including Retail and General Investors AMBIF is designed to Market practice and issue capture the common process will be harmonized elements by focusing on Pro Pro and standardized within the the professional markets professional markets in the in the region. region. AMBIF Pro Pro Market Issuers can tap in all markets with harmonized Pro Investors can invest in all documents for markets without knowing submission. their regulations closely. 12 AMBIF Elements AMBIF Elements Brief Description (AMBIF Core Components) Domestic Settlement Bonds and notes are settled at a national CSD in ASEAN+3 markets. Harmonized Documents for A common approach is of submitting information as input for regulatory Submission (Single process(es) where approval or consent is required. Appropriate disclosure Submission Form) information along with an ADRB recommendation needs to be included. Information on bonds, notes, and issuers needs to be disclosed continuously Registration or profile listing in ASEAN+3 markets. at ASEAN+3 (Place of Registration or a listing authority function is required to ensure continuous continuous disclosure) and quality disclosure. The denomination of an issue is generally expected to be in the domestic Currency currency of each ASEAN+3 market. Scope of Issuer Resident of ASEAN+3 Professional investors defined in accordance with applicable laws and Scope of Investors regulations, or market practice, in each ASEAN+3 market 13 Key AMBIF Document (SSF) • Single Submission Form (SSF) is Issuer designed to facilitate an AMBIF bond Issuer prepared applications and note issuance application to market by market regulatory, listing, and registration authorities in each participating market. Authority A Authority B Authority C • SSF is prepared for the benefit of issuers aiming to issue bonds/notes to Professional Investors in multiple Issuer ASEAN+3 markets. Single Submission Form • But investors can also be benefitted (SSF) from the standardization of document. Authority A Authority B Authority C 14 Key AMBIF documents (Impl GL) • SFF should be referenced to the Single Submission Form AMBIF Implementation Guidelines, which explain specific issuance (SSF) processes in each market. • The Implementation Guidelines Authority A Authority B Authority C increase market transparency. - Impl GLs should minimize or reduce legal uncertainty. Impl Impl - Where a market does not, or no longer, GLs GLs Impl requires the physical submission of GLs documentation, the SSF can serve as a checklist or a guiding template while the Implementation Guidelines should Bond issuance always be able to support issuance application in any form. 15 Additional AMBIF Features Language of documentation: . English Governing law and jurisdiction: . Governing law related to settlement needs to be local; . However, the governing law and jurisdiction for specific service provisions may be negotiated and agreed between the parties involved in the issuance. Other consideration in the next steps . note issuance program