In Southeast Asia, regulators and market participants value ICMA`s expertise in repo market documentation and best practices. The Global Master Repurchase Agreement is the standard documentation for international repo, supported by legal opinions obtained by ICMA in more than 60 countries, including Australia, China, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, Taiwan and Thailand. The update of GMRA`s legal opinions for 2016 has just been completed. ICMA is a member of the Asia Financial Forum (ASF) and coordinates informally with other multinational organizations such as ASEAN, APFF and APEC on the development of repo markets, documentation and events. Gen Saki`s move to Japan is a step towards the international standard for retirement operations. Traditionally, Japan has used a “gen tan” buyback model that uses cash as collateral for credit and credit. The gradual step towards the gen saki trade in Japan improves market efficiency and shortens the billing cycle. Many believe that their hypothesis, fuelled by advancing technology, represents a significant growth opportunity and could lead to future structural changes in Japan`s money markets. In 2016, we hope to expand the icma European Repo Market Survey to identify Asian repo-trades.
ICMA is also heavily involved in the development of ASEAN-repo`s local markets, providing expertise and training in international best practices. ICMA Asia Pacific`s representation in Hong Kong is present in Asian debt markets and supports market players and public authorities, focuses on primary markets, pension bonds and green bonds, while pursuing new initiatives in secondary markets, e-commerce and infrastructure in the region. It plays an essential role in ensuring coordination with the European market and related regulatory developments. ICMA`s work in the Asia-Pacific region is led by a committee of members from the region. The gen-saki market developed in the 1950s due to the absence of a secondary market in Japan for government bonds issued by the Bank of Japan. Gen-saki is open to companies and financial institutions and was also open to foreign investors until 1979. Gen Saki transactions are available for all maturities up to one year, but most agreements are within three months or less. When setting the saki gene rate, the yen is often the basis of the reference rate, as it accurately reflects the market price of deposits.
Gen-saki is a secondary bond market in Japan, which is also known as repo-Markt for its similarity to pension transactions. An ongoing reform process has led to the gradual opening of the Chinese onshore bond market, with the first panda bonds issued by foreign issuers on the domestic market in 2005 and reforms have been undertaken to develop the market. The joint ICMA-NAFMII working group set up as part of the UK`s economic and financial dialogue published a widely circulated report last year on the comparability of new emission modes in the Chinese and international primary venture capital markets.