overview 2013 www.gfma.org ABOUT e Global Financial Markets Association (GFMA) serves as a forum that brings together its existing regional trade association members to address issues with global implications. GFMA represents the common interests of the world’s leading nancial and capital market participants, and speaks for the industry on the most important global market issues. GFMA’s mission is to provide a forum for global systemically important banks to develop policies and strategies on issues of global concern within the regulatory environment. GFMA brings together three of the world’s leading nancial trade associations to address the increasingly important global regulatory agenda and to promote coordinated advocacy e orts. e Association for Financial Markets in Europe (AFME) in London and Brussels, the Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong and the Securities Industry and Financial Markets Association (SIFMA) in New York and Washington are, respectively, the European, Asian and North American members of GFMA. MEMBERS OF THE ALLIANCE GLOBAL MODEL GFMA operates with a unique model—leveraging the deep policy, technical, and market expertise of over 200 employees in ve cities worldwide EUROPE ASIA NORTH AMERICA Advocate stable, competitive, Promote the growth and Develop policies and practices sustainable European development of Asia’s capital which strengthen nancial nancial markets that support markets and facilitate their markets and which encourage economic growth and bene t orderly integration into the capital availability, job creation society global nancial system and economic growth while building trust and con dence in the nancial industry GFMA’S BOARD OF DIRECTORS GFMA’s Board of Directors manage the business and a airs of the association. Directors are designated by an a liate organisation or the Board itself, who ensures appropriate geographical representation. Chairman of the Board Chief Executive O cer Blythe Masters Simon Lewis Head of Global Commodities Chief Executive, AFME JPMorgan Chase & Co. Steven Ashley Richard F. Brueckner Lenny Feder Global Head of Fixed Income, Chief of Sta Group Head, Financial Markets Senior Managing Director BNY Mellon Standard Chartered Bank Nomura International plc Walter Dolhare Gordon French Mark Austen Managing Director Head of Global Markets, ASP CEO Co-Head of Markets Division HSBC ASIFMA Wells Fargo Securities, LLC Thomas Gadenne Andrew Bester David Esco er Global Head of Fixed Income Group Director & CEO Managing Director Markets Commercial Banking Head, Global Equities & Flow Crédit Agricole Corporate Lloyds Banking Group plc Derivatives Investment Bank Société Générale Gaël de Boissard Chet Helck Co- Head of Investment Michele Faissola CEO, Global Private Client Banking Global Head of Asset & Wealth Group Credit Suisse Management Raymond James Financial, Inc. Deutsche Bank Naota Hirota Bill Mills Percy Rueber Managing O cer CEO, North America Co-Head of Global Financial Deputy Group Head, Integrated Citi Markets Global Markets Global Head of Clients & Mitsubishi UFJ Financial Group, Samuel Molinaro Products Inc. Chief Operating O cer ING Bank N.V. UBS Mads Jakobsen T. Timothy Ryan, Jr. Managing Director, Head of Hidetake Nakamura President & CEO Markets FICC (Fixed Income, Deputy President SIFMA Currency and Commodities) Mizuho Securities Co., Ltd. Nordea Bank Benoît de Vitry Peter Nielsen Managing Director, Barclays Frédéric Janbon CEO, Markets Treasurer Global Head of Fixed Income RBS Barclays BNP Paribas John F. W. Rogers Bryan T. Weadock Xiaojing Li Executive Vice President Co-Head of Global FICC Sales Global Head of Financial Goldman, Sachs & Co. Bank of America Merrill Lynch Markets Bank of China Jim Rosenthal Eddy Wymeersch Chief Operating O cer Independent Director TJ Lim Morgan Stanley Global Head of Markets UniCredit Henri-Paul Rousseau Vice-Chairman Power Corporation of Canada Independent Director ISSUES When a speci c issue clearly represents a common interest that transcends regional perspectives, GFMA coordinates on-the-ground advocacy e orts with its regional members. CONSISTENCY OF IMPLEMENTATION CROSS-BORDER RESOLUTION GFMA’s overarching goal is to coordinate Global harmonization of recovery and resolution regulatory reform implementation across borders planning documentation, rm-speci c cooperation to ensure regulatory arbitrage does not pose a risk agreements, and robust peer reviews are imperative to the nancial system and to avoid negative extra- to the safety and soundness of our markets in territorial e ects. the event of a rm failure. GFMA has advocated that progress on orderly resolution regimes COMMODITIES should reduce the amount of any G-SIB surcharge GFMA has established itself as a driving force currently being considered. on issues such as IOSCO’s consultation on the Functioning and Oversight of Oil Price Reporting FINANCIAL TRANSACTION TAX Agencies. Other priorities include embedding Such a tax would cycle through the economy, new transparency requirements in the European harming retirees and those planning for retirement, wholesale gas and power markets and opposing issuers, investors, pensioners and businesses. position limits on a global scale. Proposals for a nancial transaction tax have been COMPENSATION separately introduced in Europe and the U.S. If a tax is only imposed regionally, essential businesses ere is no question that compensation must be will move to other jurisdictions and that region will tied to sustainable long-term performance and be put at a competitive disadvantage. e ective, independent risk management. However, further mandates on compensation from global bodies such as the FSB should be limited. In the event of pre-existing frameworks, local and regional regulatory authorities should provide appropriate exibility in the application of compensation provisions. FOREIGN EXCHANGE (FX) OTC DERIVATIVES e Global FX Division of GFMA promotes e swaps market is truly global and requires e ciency and international convergence of harmonization of regulatory initiatives across regulation in the global FX market, the world’s global regulators. is harmonization is needed on largest nancial market. It has taken a leading role issues including registration, trading, clearing, and in discussions with multiple jurisdictions around pre- and post-trade reporting. clearing, execution and reporting consultations SHADOW BANKING and a proactive role in ensuring the industry meets enhanced transparency requirements driven by the Signi cant changes to bank prudential G-20. requirements in Basel III could lead to a need for increased non-bank funding to complement LEGAL ENTITY IDENTIFIER (LEI) funding provided by banks. To assist regulators rough a coordinated initiative between GFMA and market participants in monitoring activity and other trade associations, the industry has and managing potential sources of risk, GFMA is been working to develop a global, consensus- identifying and prioritizing aspects of the shadow based solution for the accurate and unambiguous banking system that require the most signi cant identi cation of legal entities engaged in nancial attention. transactions. A global standardized LEI will help TRADING BOOK enable organizations to more e ectively measure and manage risk, while providing substantial e 2008 nancial crisis highlighted the need operational e ciencies and customer service to review capital requirements for trading book improvements to the industry. activities. GFMA is working with other trade associations to ensure that any new market risk MARKET PRACTICES framework allows for exibility in implementation Events related to LIBOR point to a need for a and is appropriately risk-adjusted. broader consideration of nancial benchmarks used in the marketplace, and to determine what common practices need to be in place to enhance market integrity generally. GFMA believes that the key benchmark indices around the world need to be subject to consistent, transparent and sound practices to ensure the smooth functioning and e ciency of global nancial markets. Connect with GFMA www.gfma.org twitter.com/gfma linkedin.com/gfma CONTACT Vickie Alvo Executive Director GFMA Tel +1 212 313 1212 [email protected] For Press Inquiries Mark Austen Katrina Cavalli James White Chief Executive O cer Managing Director Media Relations Manager (ASIFMA) Public A airs GFMA (AFME) GFMA (SIFMA) Tel +852 2537 4198 [email protected] Tel +1 212 313 1181 Tel +44 (0)207 743 9367 [email protected] [email protected].