ICMA was pleased to welcome a delegation of Chinese officials to the June General Assembly, including Jianhong Liu, Deputy Secretary General of NAFMII, who delivered a keynote address on the evolution and outlook of China`s financial markets, and Mr. Zhen Xu, President of the Shanghai Clearing House on the Chinese Business Loans Market – Large Development Prospects. Spencer Lake, the new president of ICMA, also outlined priorities for further development of China`s market from a global perspective, and the meeting ended with a meeting between Spencer Lake and Mingyou Bao, Head of Representation for Europe at the People`s Bank of China.  The LAW of the PRC prohibits a “fluidity” clause (禁止质) under which, upon entry into the deposit agreement, the parties agree that the ownership of the security in the event of a late payment of the pledge is transferred to the pawnbroker (in fact, a transfer of self-exporting property). ICMA has published a deeply revised version of its primary market manual, which contains guidelines for banks on managing international bond issues. It contains recommendations for best practice throughout the process, from the announcement of the transaction to the closing and liquidation of the deal, through the creation of the book, the introduction of issues, awards and prizes. It also contains examples of standard languages for use in borrowing documentation, including the final prospectus. The revised new manual is the result of a thorough review by a working group of ICMA members. The format has been simplified and streamlined with a structure that now follows the chronology of events and actions involved in a typical bond issue.
Much of the content has been updated to ensure that it is consistent with current market practices and regulatory requirements. The manual now focuses on communication and information between the various members of the union working on the agreement. The ICMA manual is available on the ICMA website for all ICMA members (and subscribers). In November, ICMA is holding launch events in Hong Kong and Singapore for the revised ICMA Primary Market Manual. These events will include discussions and Q-A meetings with high-level market participants who have been closely involved in the review of the manual. More details to come. Unlike the NAFMII masteragrement (version 2007), which adopted a multi-party model, the NAFMII masteragrement (2009 version) is developed in the form of a bilateral agreement. The bilateral approach to signature addresses concerns that a multi-party signature model, combined with the mandatory documentation requirement for a wide range of “financial derivatives” under the NAFMII Director Contract (version 2007), could cover certain products (.
B, for example, structured deposits) that the parties have not regulated under the closing framework agreement.