Three leading fixed income market associations have created a new organisation to spearhead the industry’s lobbying efforts in legal and regulatory issues.
The creation of the Global Capital Markets Board underlines the importance of the derivatives markets in the world of fixed income, bringing together the main bodies that represent the cash and derivatives markets.
Members of The Bond Market Association, The International Swaps and Derivatives Association and the International Capital Markets Association will meet three times a year to discuss the big themes in the market.
The organisations represent hundreds of market participants, including the leading investment banks and securities dealers.
“Ensuring co-ordination and collaboration between these three organisations serves the interests of the respective memberships, particularly given the interaction of the cash and derivatives markets,” said Jonathan Moulds, international head of global markets at Bank of America and chairman of ISDA.
Regulatory changes aimed at improving market transparency, such as the EU Directive on Markets in Financial Instruments, will be among the issues the new board will discuss.
The board would provide an “effective way to address the multitude of regulatory and market practice issues that will arise as capital markets continue to develop and expand globally,” said Edward Forst, chief administrative officer of Goldman Sachs and chairman of the BMA.