Economic Growth

Capital markets and international investment are critical drivers of economic growth world-wide.

Policies that promote investment and regulatory cooperation improve market efficiency and liquidity, which in turn finances broader growth. GFMA supports measures that support capital markets, particularly in areas such as tax, securitization, trade and sustainable finance.

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Correspondence

New Financial Global Capital Markets Growth Index

January 2019  |  Correspondence  |  White Papers and Reports

New Financial has published a new report, commissioned by the Global Financial Markets Association (GFMA), entitled “The New Financial Global Capital Markets Growth Index.” The purpose of the report is to provide an in-depth review and comparison of national and regional capital markets across the globe in terms of market size, depth, and access to pools of capital. GFMA commissioned New Financial to prepare the report to underscore the role markets can play in supporting sustainable economic growth around the world by diversifying the sources of available funding for companies, improving productivity through more efficient capital allocation and better risk management, increasing the capacity of economies to absorb economic shocks, and funding more sustainable pension systems. The report also identifies challenges and provides recommendations for jurisdictions to develop and expand capital markets as a source of funding and investment.

GFMA and IIF Joint Response Letter on the Recommendations of the Task Force on Climate-related Financial Disclosures

February 2017  |  Correspondence  |  Comment Letters

GFMA and the Institute of International Finance (IIF) provide comments to the Task Force on Climate-related Financial Disclosures, Financial Stability Board, Bank for International Settlements, on the Recommendations of the Task Force on Climate-related Financial Disclosures, published December 14, 2016, and the Annex: Implementing the Recommendations of the TCFD, and the Technical Supplement - The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities.


GFMA with Other Associations Submit Comments to the Basel Committee on Basel Step In Risk Consultation

March 2016  |  Correspondence  |  Press Releases

GFMA drafted and today submitted comments to the Basel Committee on its Step-In Risk consultation (joined by CREFC, CREFC Europe, the Real Estate Roundtable).  The Basel Committee issued this consultation to address the risk that a bank would ‘step in’ to provide voluntary, non-contractual support for a transaction (such as what banks did with SIVs or credit card ABS in the crisis).  The Basel Committee’s proposal would require a bank to examine all off-balance sheet vehicles and other relationships which are not currently capitalized and, if step-in risk indicators are there, hold capital for them as if they were on-balance sheet.  The proposal is very expansive and could require massive amounts of effective consolidation if read broadly.  GFMA/CREFC/RER’s position is that the proposal is not needed given the massive amount of regulatory change (importantly including changes to off-balance sheet accounting rules, the Volcker Rule in the US, and other regulations) that have largely addressed this problem.  We do not believe step-in risk is a material issue at this point and suggest the Basel Committee should forego implementing new rules in this area.  We also raise significant concerns with the lack of clarity and expansive breadth of the proposal.  

See also:
Identification and measurement of step-in risk - consultative document

GFMA and AuSF Submit Comments to the SEC Regarding the Re-Opening of Comment Period for Asset-Backed Securities Release

June 2015  |  Correspondence  |  Press Releases

GFMA and the Australian Securitisation Forum (AuSF) provide comments to the SEC regarding proposed revisions to Regulation AB under the U.S. Securities Act of 1933 (Regulation AB).

The Securities and Exchange Commission is re-opening the comment period for the Asset-Backed Securities Releases (Release Nos. 33-9552; 33-9244; File No. S7-08-10).

GFMA Submits Comments to OECD Regarding Implementation of the Common Reporting Standard Background

March 2015  |  Correspondence  |  Press Releases

GFMA and its regional members, SIFMA, AFME and ASIFMA, provide comments to the Organisation for Economic Co-operation and Development (OECD) Centre for Tax Policy and Administration to express concerns regarding the current timeframe for both implementing and ensuring compliance with the Common Reporting Standard (CRS) for automatic exchange of information on financial accounts.

Related:
GFMA White Paper on Implementation of the OECD's Common Reporting Standard - 5 February 2015

GFMA with Several Other Associations Submit Response to BCBS-IOSCO Consultation on Simple, Transparent, and Comparable Securitisations

February 2015  |  Correspondence  |  Press Releases

GFMA, the International Capital Market Association (ICMA), the Institute of International Finance (IIF) and International Swaps and Derivatives Associations (ISDA) (together the "Joint Associations") responded to the Consultation Document entitled "Criteria for identifying simple, transparent and comparable securitisations" published by the Basel Committee on Banking Supervision (BCBS) and the Board of the International Organization of Securities Commissions (IOSCO) on 11 December 2014. 

GFMA White Paper on Implementation of the OECD's Common Reporting Standard

February 2015  |  Correspondence  |  White Papers and Reports

This white paper reflects the views SIFMA, AFME and ASIFMA, collectively, the “Working Group” with regard to implementing the OECD’s Common Reporting Standard (CRS).

Related:
GFMA Submits Comments to OECD Regarding Implementation of the Common Reporting Standard Background - 16 March 2015

 

GFMA brings together three of the world's leading financial trade associations to address the increasingly important global regulatory agenda and to promote coordinated advocacy efforts. The 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.

GFMA and Other Associations Provides Information to BCBS on Revisions to the Basel Securitisations Framework

August 2014  |  Correspondence  |  Press Releases

GFMA and other associations provides further information to the Basel Committee for Banking Supervision (BCBS or the Committee) for BCBS to consider as they move toward completing work on the proposals set out in the second consultative document, "Revisions to the Basel securitisation framework."

The groups remain concerned that the current proposals will not meet the Committee's stated objective of comparability, resulting instead in capital requirements that are neither comparable among calculation methods nor proportionate to risks.

It is essential that the timetable for finalisation of the proposed framework is extended to address those shortcomings. Additional work should be undertaken to refine the calibration of the proposed framework and especially to improve the consistency of results between the internal ratings-based approach (IRBA), the external ratings-based approach (ERBA) and the standardised approach (SA). This should include gathering additional, more granular data and undertaking further analysis beyond what was provided in the QIS. In particular, we would recommend conducting analysis of data grouped by the market-defined asset classes of the underlying exposures (rather than according to the regulatory exposure categories). Further consideration should also be given to additional analytical work provided by the industry and referred to in the Joint Associations' comment letter dated 24 March 2014 (Comment Letter).

RCL has conducted an analytical study of certain data provided by a number of GFMA's member banks. These data are limited as explained in the Report, and the Report should be read and understood in that context. It is especially important to note that the Report does not advocate or support a particular calibration method or outcome, and in particular we do not intend that any of the implied p-values set out in the report should be used to calibrate the revised framework. Rather, the Report reveals a number of results that we respectfully ask the Committee to consider as they continue to work on the proposed revisions.

Related Material

RCL Report: Quantitative Impacts of BCBS 269 Securitisation Capital Approaches (August 8, 2014)

BCBS 269: "Revisions to the Basel securitisation framework" (December 21, 2013)

GFMA and Other Associations Submit Comments to the BCBS on the BSBC's Second Consultative Document on the Basel Securitisation Framework (March 24, 2014)

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News

New Financial Releases Global Capital Markets Growth Index

10 January 2019   |   News  |  Economic Growth

Washington, D.C., 10 January 2019 – New Financial, commissioned by the Global Financial Markets Association (GFMA), has today published a new major industry report, “The New Financial Global Capital Markets Growth Index.” The purpose of the report is to provide an in-depth review and comparison of national and regional capital markets across the globe in terms of market size, depth, and access to pools of capital.

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