ICMA Signs Cooperation Agreement With Japan's Regulator

by Robin Pilgrim, LawAndTax-News.com, London

23 January 2008

The International Capital Market Association (ICMA) and the Japan Securities Dealers Association (JSDA) have signed a joint memorandum of understanding to address issues of mutual concern that arise with regard to the international markets.

Initially the associations, which signed the MoU on Monday, will establish an exchange of information on the securities and capital markets that each association represents.

Information exchange is expected to take place in the areas of: law and regulation, including self regulation; planning, development and operation of efficient trading practices and mechanisms; clearance and settlement procedures; and accreditation and training for market professionals.

The MoU was signed at the Japan Securities Summit, which took place in London from the 21st to 22nd of January, an event co-hosted by the two organisations to explain the measures which are being taken to strengthen the competitiveness of Japanese financial markets and to increase their attractiveness to international investors. The agreement was signed by René Karsenti, Executive President of ICMA and by Toshio Ando, Chairman of the JSDA.

Commenting on the MoU between the two associations, Karsenti explained that: “ICMA has been committed for almost forty years to the development of stable, well functioning global capital markets, through the establishment of common standards and market practice. I am very pleased with this important partnership with JSDA as it will enhance information flow between our two organisations and their members, creating the setting essential for increased collaboration and investment between our largely European focused membership and JSDA’s members in Japan.”

Ando also commented that: “ICMA and JSDA have already developed a relationship of mutual trust and respect, as evidenced by their close collaboration in planning and organising the Japan Securities Summit. Looking forward, it is my great hope that this MoU will provide us with more opportunities to cooperate in increasing the fairness and efficiency of the capital markets that we represent and cope jointly with changes in international financial markets.”

The International Capital Market Association (ICMA) is the self-regulatory organisation and trade association representing constituents and practitioners in the international capital market worldwide. ICMA’s members are located in 48 countries across the globe, including all of the world’s main financial centres, and currently number some 400 firms in total.

JSDA is a hybrid association functioning both as a self-regulatory organisation (SRO) and as a trade association in the Japanese securities market. Today JSDA comprises more than 500 members, consisting of securities firms and other financial institutions operating securities business in Japan.

Recommended