Published by TMA Office. COO s Message

Transcription

1 Cover COO s Message 1 Events Update TMA Code of Conduct Completion Treasury Markets Review 2010 & Development Briefing on circular ~ Renminbi-cross border trade & new position Asian Financial Forum 2011 Commercial Crime Bureau Course Technical Briefing on new PQF & Code of Conduct & Practice Development of Trade Repository for OTC Derivative Seminar Meeting with Gold Council Seminar - How to apply technical Analysis in Forex Ex Interview on RMB Bonds Training for NAFMII Reception ~ Young Treasurers Club 13 Conference on RMB 14 Briefing on QDI Scheme Upcoming Events Interview on Bond Trading Global Finance Seminar Series Professional Certificate in TM ACI World Congress 16 Model Code Training 16 Model Code Examination 17 Annual Ball Published by TMA Office COO s Message We are glad to report that with the advent of spring, intensive consultation with the relevant stakeholders on TMA Code of Conduct and relevant matters are going on well, with a view to reaching a conclusion by the end of May or June Mar Issue On the international front, while we saw the European turmoil and the Japanese disasters in March, we should be concerned about the global economic impact in the coming few months. USA also showed signs of uncertainty. On Mainland, the latest twelfth five year plan has confirmed Hong Kong s strategic position in finance. While RMB continues to be our main focus for TMA, we will strive our best to make Hong Kong to be the offshore RMB centre for Mainland, despite competitions from the neighbors. We would also try our best to be the Asset Management Centre in Asia to cope with the latest trends. In 2011, we intend to do more on roadshows to promote Hong Kong as an international finance centre. Apart from serious business, the Annual Ball is not to be forgotten. It will be held on 4 Nov at the Grand Hyatt Hotel to foster relationship and exchange views. We therefore seek more organizational support for financial sponsorship and new ideas. Please mark your date early and let us know your views. Stephen Ng Chief Operations Officer 20 April 2011 ~ Every spring is the only spring ~ a perpetual astonishment. TMA Office Address: Unit 1603, 16/F., Fu Fai Commercial Centre, 27 Hillier Street, Sheung Wan, H.K. Tel: (852) Fax: (852) tma@tma.org.hk Website:

2 2 Events Update TMA Code of Conduct completion 11 January 2011 The draft of the Code of Conduct of TMA was released for consultation with its institutional members and the banking industry associations. It sets out the key principles in treasury market activities, covering areas including: General Standards, General Controls, Dealing Principles, Risk Management Principles, Back-office Practice and Market Specific Dealing Practices and Conventions. In order to give members and market practitioners a chance to know more and to ask questions, a Technical Briefing of TMA s New Professional Qualification Framework & Code of Conduct had been held on 21 Jan. The consultation period ended on 28 February Institutional and Individual Members of the TMA will be required to observe and comply with the Code of Conduct when finalized. Copy of the draft Code is available on the website for members information. The TMA Code is intended to be completed by end of the second quarter of Comments from members and industry associations are being considered by the Working Group in finalizing the draft Code of Conduct. Should you have any questions regarding the draft Code of Conduct, please contact us at the TMA by calling or visit our website at

3 3 Treasury Markets Review 2010 & the Correlation between the Development of Treasury Markets & TMA 13 January 2011 With a new start in 2011, TMA is pleased to have Mr. Wilson Chan, our Executive Board Member, to share his perspectives on with market practitioners on the future development of the treasury markets and the correlation between the development and TMA. The seminar aimed at helping members to gain an overview of the treasury markets development. More than 50 participants attended. The development of future education programmes of TMA were introduced during the seminar to allow attendees to plan ahead better for their career. Participants listened to the sharing of Mr. Wilson Chan on future development of the treasury market. Representatives from the OUHK gave a brief introduction on the Foundation Course during the seminar.

4 4 Briefing on the circular issued by the HKMA regarding the Renminbi cross-border trade settlement & new open position 14 January 2011 With reference to the HKMA circular issued on 23 Dec 2010, the business of crossborder trade settlement in RMB has undergone significant development since its commencement in July The circular aims at providing further guidance on the handling of RMB crossborder trade settlement by authorized institutions participating in RMB business, as well as the keeping of RMB net open position. Speaker of the Briefing session Ms. Carmen Chu, Executive Director of External Department the Hong Kong Monetary Authority. TMA is delighted to have Ms. Carmen Chu, Executive Director of External Department, Hong Kong Monetary Authority and other representative from HKMA to conduct a briefing on the captioned subject on 14 Jan The briefing was very much informative and it attracted over 130 participants. The briefing brought out messages of promotion on Risk Management, Real Economy and Financial Innovation. Participants took the opportunity to ask questions directly from the experts. TMA Executive Board member, Mr. Francis Ng; the speaker, Ms. Carmen Chu; COO of TMA, Mr. Stephen Ng and TMA Executive Board member, Mr. Wilson Chan.

5 5 Thematic Workshop in Asian Financial Forum January 2011 The Asian Financial Forum (AFF) organised jointly by the Hong Kong Special Administrative Region Government (HKSARG) and the Hong Kong Trade Development Council (HKTDC) was held this year on January at the Hong Kong Convention and Exhibition Centre. It gathered world s influential monetary experts and business leaders for groundbreaking discussions about the opportunities and challenges now facing Asia. TMA members had the honor to be invited by the AFF to join the The Renminbi Investment Surge and Its Impacts on Greater China Financial Markets and Services and other thematic workshops held on 18 January. The workshop discussed the potential impact on evolving investment and exit options on non-renminbi equity markets, on banks, and on China s goal to position the Renminbi for greater international use. It also discussed the currency management regulations. Besides Executive Board Members of TMA whom HKTDC had sent special invitations to, a number of TMA members also attended. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Commercial Crime Bureau Course 21 January 2011 With positive responses from previous years, TMA was invited to organize a full-day training for the Inspectorate officers of the Commercial Crime Bureau (CCB), Hong Kong Police Force. This has been the 6 th time that TMA took part in the Commercial Crime Investigation Course of CCB. Speakers for the training this year were Mr. Wilkie Lai, member of TMA Education Subcommittee, and Mr. Terence Lee, Market Practices Committee member of TMA. Guest speakers included Mr. William Fan and Ms. Winnie Tang of Thomson Reuters. Our COO, Mr. Ng gave a brief introduction of TMA before the classes commenced.

6 6 Commercial Crime Bureau Course ~ continue 18 January 2011 Audience found the training practical and useful. There were more than 30 students who work at the Commercial Crime Bureau at the Police Force. One of our speakers for the course, Mr. Terence Lee, who is a member of the Market Practice Committee of TMA. One of the guest speakers from Thomson Reuters~ Ms. Winnie Fan.

7 7 Technical Briefing on TMA s New Professional Qualification Framework & Code of Conduct & Practice 21 January 2011 Mr. Norman Chan (Chief Executive of HKMA and Honorary President of TMA) mentioned earlier at the Treasury Markets Summit 2010 in Beijing (15 Oct 2010), the Hong Kong Monetary Authority is formulating new supervisory measures to enhance the professional standard of local treasury market practitioners through continuous training and compliance with market codes. The Executive Board of the Treasury Markets Association has approved the new Professional Qualification Framework (PQF) and membership structure as proposed by the Professional Membership Committee. The 4 membership classes introduced as Associate Member, Full Member, Fellow Member and Honorary Member. New education programmes under the PQF will be launched with a view to further enhancing professional standard of treasury market practitioners. The new PQF is expected to be implemented in the third quarter of In order to facilitate members understanding of the new PQF and the Code of Conduct, a briefing session was held on 21 Jan Over 140 representatives from banks and relevant financial institutions attended. Owing to seat limitations, some interested members or market participants might not be able to register or attend the briefing session. If you wish to review the presentation powerpoint, please contact us at or tma@tma.org.hk. Note: Under the new framework, treasury markets practitioners will have to meet the prerequisite of being a TMA member or equivalent. The proposed measure is in its implementing progress and the draft Code of Conduct and Practice of the Treasury Markets Association ( the Code of Conduct ) had been released on 11 Jan 2011 for Institutional members and the banking industry associations for consultation until 28 Feb The Code of Conduct of TMA is intended to be launched by end of the second quarter All TMA Institutional and Individual members will be required to observe and comply with the Code of Conduct. Others are encouraged to do so as well.

8 8 Technical Briefing on TMA s New Professional Qualification Framework & Code of Conduct & Practice ~ continue 21 January 2011 On request of some members, please share the Highlights of the Technical Briefing as below: Highlights of the Technical Briefing on 21 January The draft module on Competence and Ethical Behavior of the SPM (Supervisory Policy Manual) was issued by the HKMA on 11 January Copies had been sent to all AIs for reference and consultation. 2. The draft TMA Code of Conduct and Practice was issued for consultation on the TMA website until 28 February The TMA Code of Conduct & Practice to be endorsed by HKMA is targeted to be completed in the 2 nd Quarter of When the new SPM module becomes effective, AIs staff engaged in treasury market activities will have to comply with the set supervisory requirements. a) AIs should take into account any relevant qualifications obtained by the staff under the professional qualification framework of the TMA, or comparable qualifications of other professional bodies. b) AIs should ensure their staff who engaged in treasury market activities observe the relevant standards in the TMA Code. 4. The new PQF and new Membership Regime of TMA will be launched in Q3/2011. The four membership classes: Associate, Full, Fellow and Honorary Members will be introduced. a) TMA Honorary Member: By invitation or application and with support of two Executive Board Members b) TMA Fellow Members: By invitation or application c) TMA Full Member: All current Full Members (Practising), Full Members, Oversea Members and Associate Member (who have passed the Model Code Exam and have fulfilled all other upgrading requirements) d) TMA Associate Members: Existing Associate Members (who have not completed all upgrading requirements), Associate Members (Full Time Student) and Affiliated Members ** For more details, please refer to the Technical Briefing Powerpoint slides presented on 21 January If you wish to review the presentation Powerpoint, please contact us at or tma@tma.org.hk.

9 9 Development of a Trade Repository for OTC Derivative Transactions in Hong Kong - Seminar 28 February 2011 As a result of the efforts made by international community to improve transparency and reduce counterparty risks in the OTC derivatives markets, the G20 has recommended that all standardized OTC derivatives contracts should be cleared through central counterparty clearing facilities (CCPs) and all OTC derivatives contracts should be reported to TRs by the end of As an international finance centre, Hong Kong will comply with these international standards. Mr. Esmond K.Y. Lee, Executive Director of Fi nancial Infrastructure Department, Hong Kong Monetary Authority shared his insights. With regard to the announcement made by The Hong Kong Monetary Authority (HKMA) on development of local trade repository (TR) for over-the-counter (OTC) derivatives trades in Hong Kong, TMA is delighted to have Mr. Esmond K.Y. Lee, Executive Director of Financial Infrastructure Department, Hong Kong Monetary Authority to share his valuable insights on the topic on 28 Feb. With his sense of humor, Mr. Lee s talk was informative, comprehensive and interesting. Thank you Mr. Lee for giving such an enchanting talk. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

10 10 Meeting with the World Gold Council 4 March 2011 As an international financial organization, TMA meets with relevant associations upon requests. Mr. Stephen Ng, COO of TMA, had a meeting with delegates of the World Gold Council on 4 Mar as requested. Dr. George Milling Stanley, Director and Dr. Natalie Dempster, Head of Government Relations of the World Gold Council came from the U.S. and England for the meeting. As Dr. Stanley and Dr. Dempster wished, they discussed on works of the Basel Committee on Banking Supervision on capital requirements regime at the meeting. and Dr. Natalie Dempster and ther cooperation in the near fu- The meeting confrom Dr. George Milling Stanley both parties look forward to furture. cluded with much appreciation ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Seminar on How to Apply Technical Analysis in the Forex Exchange Market & Medium-term Forecast of Euro 8 March 2011 In order to capture the latest development of Forex Exchange Market and have a mediumterm forecast of the Euro, TMA hosted a seminar highlighted on "How to Apply Technical Analysis in the Forex Exchange Market & Medium-term Forecast of the Euro". Mr. Wilson Leung, Chairman & Founder, Trendsetter Financial Markets Ltd was the speaker and his sharing during the seminar makes it a valuable one. Mr. Wilson Leung spoke with graphs to give participants a better picture of his analyses.

11 11 Interview with TMA Executive Board Members on RMB Bonds 4 & 8 March 2011 Upon the invitation by the SFC, Executive Board Member of TMA, Mr. Andrew Fung was interviewed on issues related to Renminbi Bond Markets and its popularity. The interview would be shown on nowtv and the article would be printed on the Hong Kong Economic Journal. The interviews were released on the show in 2 days. The first interview was shown on 4 Mar focused on popularity of Renminbi Bonds. The second part was released on 8 Mar which focused on the second hand market of RMB Bonds. For more on the interview, please visit: Mr. Andrew Fung, Executive Board member of TMA. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Training for NAFMII - OTC Bond Trading and Investment Management March 2011 As an initial collaborative project between National Associaiton of Financial Market Institutional Investors (NAFMII) and TMA, a 5 days intensive training on OTC Bond trading and Investment Management was conducted for NAFMII from 15 to 21 March participants at senior banking levels from Beijing flew over to take part in the training. The training comprised semi- nars abounding with information shar- ing by market intellect as well as visits to relevant banking institutions. The intensive training which lasted 5 whole days plus some visits to major financial institu- Participants, guest speakers and TMA staff took the tions were well received. group photo.

12 12 Training for NAFMII - OTC Bond Trading and Investment Management ~ Continue March 2011 Opening Ceremony of the training was remarked by Mr. Edmond Lau, Executive Director, Monetary Management Department, HKMA and Ms. Zijuan Cao, Deputy Secretary- General of NAFMII. During the training, participants raised out their questions actively as it is a golden opportunity for them to interact with market talents of Hong Kong. A visit to the HSBC building, learning about the history of this world class financial institution. A visit to the Information Centre at the HKMA A group photo upon the completion of the training week. Our Executive Board member, Mr. Lawrence Lam, making a speech at the closing ceremony.

13 Reception by Young Treasurers Club 28 March 2011 Upon the signing of the collaborative agreement with the Hang Seng Management College (HSMC) in June 2010, TMA has involved in setting up the Young Treasurers Club at the HSMC and thereby recruited a group of young members as TMA Associate Members (Full-Time Students) through the Young Treasurers Club. The Young Treasurers Club organizes events and gatherings for their members and provide opportunities for their members to obtain market updates in the industry. Mr. Stephen Ng giving an opening speech to students with spiritual encouragement. A group of energetic students were very happy to have a chance to meet with their principal, Dr. Chui Hong Sheung, and other market talents. On 28 Mar, a number of TMA Professional Membership Committee members Mr. Woody Chan, Ms. Jenny Chau and Ms. Elaine Chan, together with Mr. Stephen Ng attended the reception as the Young Treasurers Club invited. Students gathered and took the opportunity to meet with industry talents.

14 14 Conference on RMB Financial Products in Hong Kong 7 April 2011 Invited by Asia Securities Industry and Financial Markets Association (ASIFMA), our Executive Board Member, Mr. Wilson Chan represented TMA shared his expertise at the Conference on RMB Financial Products in Hong Kong on 7 April at the Four Seasons Hotel. The conference was co-organized by ASIFMA and International Swaps and Derivatives Associations Inc (ISDA) and was supported by the TMA. The panel focused on the development related to financial infrastructure and liquidity issues, including updates on market readiness for RMB products on the HKEX platform, offshore RMB liquidity conditions, and offshore RMB floating rate fixing. Mr. Wilson Chan together with other panelists, share their views on Financial Infrastructure and liquidity develop- Briefing session on the Qualifying Debt Instrument Scheme 18 April 2011 A briefing session was organized by the Hong Kong Monetary Authority on the Qualifying Debt Instrument (QDI) Scheme. The session contained an introduction of QDI, the qualifying criteria of becoming one and the issues relating to Tax concessions. More than 40 participants attended. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Upcoming Events Interview with TMA Executive Board Members Bond trading & the risk 18 & 25 April 2011 Upon invitation by the SFC, Executive Board Member of TMA, Mr. Wilson Chan would be interviewed on issues related to Bond trading and its risk. The interview will be shown on nowtv on 18 & 25 April and the article would be printed on Mingpao.com. For more on the interview, please visit: Mr. Wilson Chan, Executive Board Member of TMA

15 15 Global Finance Seminar Series ~ The Capital Market and Corporate Investment 26 April 2011 TMA started the series of talks on Global Finance since 2009 in collaboration with HKUST Business School / NYU Stern School of Business and the South China Morning Post. The series goes on and the seminar coming up will be organized on 26 April. We are delighted to have Ms. Jenny Chau, Member of Professional Membership Committee of TMA to give the Welcome Remarks for the commencement of the talk on Capital Market and Corporate Investment ~ Is the Capital Market failing investors? this time. Mr. Cliff Buddle, Acting Editor-in- Chief, South China Morning Post will be the Moderator; Mr. Alexander Ljungqvist, Ira Rennert Professor of Finance and Entrepreneurship, NYU Stern School of Business as the keynote speaker and Mr. Terry Wong as the panelist will be sharing their valuable insights on the theme and examine the forces at work and discuss the trade-offs involved. Interested parties and for more details, please visit our website: www,tma.org.hk or contact us at TMA Members are entitled to get 1.5 CPT (TMA) credits upon completion of the seminar. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Professional Certificate in Treasury Markets (Derivatives & Structured) 21 May 2011 The Treasury Markets Association (TMA) is pleased to announce that a new intake of certificate programme -- Professional Certificate in TREASURY MARKETS (Derivatives & Structured Products) in collaboration with the HKU SPACE will be commenced on 21 May The syllabus is designed to be relevant to the needs of today's treasury market practitioners. Teachers invited possess sound academic background and substantial practical experiences in the global financial arena, which is very valuable to students. Upon completion of one of the courses and passing of the examination, students will be awarded a Certificate of Achievement jointly issued by HKU SPACE and TMA. Free TMA membership for the current year will be offered to new applicants. For details on the certificate programme, please visit our website for the promotional leaflet or call HKU SPACE hotline at / to milane.yeung@hkuspace.hku.hk for course information.

16 16 The 50 th ACI World Congress (Budapest, Hungary) May 2011 The ACI - the Financial Markets Association will be hosting the 50th ACI World Congress in Budapest, Hungary. The Anniversary event gives a pleasant opportunity to explore on what future holds as it is the topic of the topic of this year. Changes occur everywhere, everyday but the center of the activity has not been changed: the dealer. This is and always has been a unique and outstanding person from the world of banking but in a way they are the same all around the world. The main purpose of the Congress is to keep alive the human touch in the industry as the most important aspect. The ACI - the Financial Markets Association hopes to bring back memories from the past and relieve the times and the developments of the last 50 congresses. This will happen in a place where also a lot of changes occurred during the period and will stand in the door of a new era. For more details of the Congress and the programme details, please visit ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Model Code Training Course (Hong Kong) 30 May 2011 Markets changes in recent years and the current global financial crisis underline the need for continuous updating of best practice. We are delighted to have Mr. Cheung Yan Carlos, Member of Education Sub-Committee of TMA to conduct this Model Code Training Course for our members. Topics covered personal conduct issues, disputes, compliance, dealing practice, guidelines for dealing with corporate/commercial clients, etc. The Model Code Training Course is highly recommended to treasury markets practitioners who should comply with the Model Code in their daily business. Interested parties please contact us for registration. TMA Members who will not sit in the Model Code Examination are entitled to get 2 CPT (TMA) credits upon completion of the training course.

17 17 Model Code Examination ~ Final Call 18 June 2011 Upgrading Scheme for Associate Members - The Last Model Code Examination With reference to the letter dated 5 October 2009 from the TMA Office, we believe all Associate Members are aware of the requirement to upgrade to Full Member / Full Member (Practising) within 3 (three) years after joining TMA. As revealed in the COO's Messages in the May and September 2010 issues of the TMA Newsletter, a new Professional Qualification Framework and a new membership classification regime will be launched, which requires members/new applicants passing of more rigorous professional training for membership admission and / upgrading from one class of membership to another. The existing PQF will therefore be restructured to reflect more closely the level of professional standard members have attained and their respective experience in the treasury markets. On launching of the new Professional Qualification Framework and a new membership classification regime in Q3 of 2011, the existing Model Code Examination to facilitate your upgrading from Associate Members to Full Members (Practising)/Full Members will no longer be held. As such, we have arranged the FINAL Model Code Examinations to be held for Associate Members on 18 June There will be no other Model Code Examination thereafter and Associate Members have to pass a new training programme for upgrading. Upon passing the Model Code examination and meeting other prescribed criteria, Associate Members are entitled to apply for upgrading. Details of the coming Model Code Examination are as follows: Examination Date: 18 June 2011 (Saturday) Time: 10:00 am 11:30 am Venue: To be confirmed Examination fee: HK$1,200 per participant Fee include a copy of The Model Code, a 2 hours lecture & the examination. Examination Mode: 30 MC questions Course Reference: A Copy of The Model Code from TMA Language : The lecture and the examination will be conducted in English Training Date : 30 May 2011 at 6:30pm Deadline for Registration and Payment: Monday, 23 May 2011 Should you have any enquiry, please contact the TMA Office at or at tma@tma.org.hk. Notes: TMA Associate Members (Full-time students) and those who are not working in treasury markets would not be required to join this upgrading scheme. Full criteria for upgrading to Full Members (practising)/full Members can be accessible by visiting our website

18 18 Mark your date ~ Annual Ball Nov 2011 As one of the big ANNUAL events ~ the TMA Annual Ball will be held this year on 4 Nov at the Grand Hyatt Hotel, Hong Kong. Having previous experience and its success, TMA celebrated its 5 th birthday last year in After going through the initial 5 years, we are looking for innovative thoughts on creating a more impressive evening for our members. To create a pleasant and relaxing evening at the Annual Ball of TMA, we are suggesting to bring in Institutional involvement this year aiming at fostering relationship and exchanging views. If you have more creative ideas on how you can make the evening more fascinating, share with us your ideas!! Announcement on performance recruitment will be made in the coming months. Stay Tuned!! Show us your talents!!!