ASIA-PACIFIC
FINANCIAL FORUM
Capital Markets (Information)
Workstream
Forging Deep, Liquid and Integrated
Capital Markets
July 7, 2014
Capital Markets (Information)
sub-workstream
• Objective: to examine and identify the strengths and
areas for improvement of information for investors in
Asian debt markets, especially those for non-bank
corporate debt.
• Deliverables: templates that can be used for selfassessments by the official sector to analyze gaps in
information disclosures, develop action plans to address
identified gaps, and foster private-public dialogue.
• Steering Committee (current list): Moody’s (sherpa), ADB,
HSBC, Nomura, Standard Chartered, Clifford Chance, Nishimura &
Asahi, PwC, Ernst & Young, Deloitte, University of Hawaii, CFA
Institute, CLP Holdings, ASIFMA (observer)
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Sub-group Reporting Protocol
Chair: Michael Taylor, Moody’s
Steering
Committee
Disclosure
Sub-group
Bond Market
Data
Sub-group
Investor Rights in
Insolvency
Sub-group
Chair: Stephen Taylor
and Candy Fong,
Deloitte’s
Chair: Bernard Ng,
Asian Development
Bank
Chair: Professor
Charles Booth,
University of Hawaii
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Sub-Group Commonalities
• All groups have adopted a self-assessment template approach.
• Templates will summarize the views of investors and other market
participants of the information they need to invest with confidence in
an economy’s debt markets.
• Economies will be able to use the templates to conduct a selfassessment which might either be published or otherwise used in
discussions with investors.
• Different levels of market development will be taken into account in
the templates by adopting the “comply or explain” principle.
• Templates will incentivize economies to enhance, over time, the
information they make available to investors about their debt
markets.
• ASEAN countries previously agreed upon a corporate governance
scorecard, showing that countries in the region are open to this type
of approach.
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Disclosure Sub-group
•
Chair: Deloitte
•
Agreed Objective: Creation of a template of desired information for
economies to evaluate the disclosures that they currently require. In some
cases there may be gaps in available information, while in others,
information may be being required which is of limited importance to
investors.
Phase 1: Comparative analysis among countries in South East Asia (will
use Deloitte’s existing analysis as the starting point). This is currently in
progress.
Phase 2: Possible questionnaire to selected market participants to
benchmark existing disclosure requirements against their expectations. WG
will consider whether Phase 2 is needed and how Phase 2 can be
conducted at the later stage of the project.
•
•
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Bond Market Data Sub-group
• Chair: Asian Development Bank
• Agreed Objective: Creation of a bond market data template to
benchmark market participants’ expectations concerning key
statistics on bond markets against available data.
• Scorecard draws on ADB’s experience in establishing Asia Bonds
Online, and its identification of data gaps in particular.
• The ADB has submitted a matrix of available information and the
template is in an advanced stage of development.
• The intention is to encourage economies to conduct selfassessments that could be published or otherwise used in
discussions with investors.
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Investor Rights in Insolvency Sub-group
•
Chair: University of Hawaii
•
Agreed Objective: Develop a template to provide a benchmark incorporating
investors’ views of the information they need about their rights in insolvency
to participate with confidence in a country’s debt markets.
Several issues under consideration:
– Contract enforcement and dispute resolution
•
• This section of the template has been fully built out and includes: opportunity to be
heard in court, speed of process, availability of real property ownership and supporting
mechanisms, availability of collateral and its enforcement, provisions for security
transactions, effective registration systems for assets and mechanisms for creditor and
debtor self-assistance
– Rights of creditors
– Coverage of established insolvency law
– Timing of cases
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Timeline - Deliverables
•Steering committee
approved individual
templates submitted
and developed by
sub-groups
H1
2014
July
2014
• Roundtables with
institutional
investors and
regulators to
incorporate
opinions into to
templates
2H
2014
•Steering Committee
agreed consolidated
work plan and
outline
•Update at Seattle
meeting
Q4
2014
•Steering
Committee issues
final templates with
observations and
recommendations
H1
2015
•Sub-groups submit
final templates to
Steering Committee
for approval
H2
2015
• How-to
guides issued
for policy
makers to best
use templates
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Action Items
•
The sub-groups will hold roundtables on the draft templates to receive feedback from
both the institutional investor community and securities regulators in the second half
of this year.
•
The templates will be amended following feedback from the roundtables.
•
During the fourth quarter of this year, the sub-groups will submit their final reports
including the proposed templates to the Steering Committee for review.
•
The committee intends to issue its final consolidated report with observations and
recommendations to the APFF in the first quarter of 2015.
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Deliverables
•
Finalized templates covering disclosures, bond market data and investor rights in
insolvency will be available by H2 2015.
•
In the course of H2 2015 a series of workshops will be held with official sector
participants to provide guidance on using the templates to analyze gaps, develop
action plans, and foster private-public dialogue.
•
Based on the output of these workshops, the sub-groups will then develop “how-to”
guides for public policy officials on using the templates as tools with which to conduct
self-assessments and to develop action plans to address information gaps.
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THANK YOU
Questions and Answers
For further information contact Michael Taylor and Eleni Himaras at Moody’s
in Hong Kong at eleni.himaras@moodys.com or +852 3551 3216