cover published by tma office 2009 may issue 1 coo’s ...09mayissue).pdftm cert. in beijing 9 2nd...
TRANSCRIPT
2009 May Issue
I am glad to report to Members that in its Annual Report 2008 published recently, the Hong Kong Monetary Authority (HKMA) has reconfirmed TMA’s important role in the financial‐market infrastructure of Hong Kong. It says that: “To strengthen collabora‐tion between the public and private sectors, the HKMA continued to work closely with the market and provide strategic support to
the Treasury Markets Association, whose mission is to further promote the pro‐fessionalism and competitiveness of Hong Kong’s treasury markets.” For details please see full text in the Report on TMA here. In response to the call for raising market awareness by the HKMA, TMA has continued to provide full support in this direction. We have supported ICG Events in organising the Asia Sukuk Summit in Hong Kong between 18 and 19 February and organised two Education Workshops on 19 February and 25 Febru‐ary respectively. On the implementation of the new certificate programmes under TMA’s Professional Qualification Framework, we have completed the first course of the Professional Certificate in Treasury Markets (Derivatives & Structure Products) run jointly with HKU SPACE in January 2009. The new Professional Course in Back Office Operations of Treasury Markets jointly organised with Open Univer‐sity of Hong Kong will be launched in June/July. As for the first course of new Professional Certificate in Treasury Markets (Treasury Products Marketing & Fi‐nancial Management) in collaboration with HKU SPACE and that of the new Risk Management Programme for Financial Institutions in collaboration with CUHK will be launched in the 3rd Quarter of the year. To enhance exposure of the TMA, we have lined up with Hong Kong Eco‐nomic Journal for series of interviews with our Members on issues/development on the treasury markets. The interview report with Mr. Eddie Yue, Board Chair‐man, was published in its April Issue and the one with Ms. Anita Fung, Chairman of MDC, was published in the May Issue. There will be more to come. In partnership with Thomson Reuters, we have launched the first e‐learning programme in March 2009. Members may make good use of this new platform to gain CPT credits.
Stephen Ng Chief Operations Officer
26 May 2009 ____________________________________________________________________________ TMA Office Address: Unit 1603, 16/F., Fu Fai Commercial Centre, 27 Hillier Street, Sheung Wan, H.K. Telephone: (852) 2543 7668 Fax: (852) 2815 9931 Email: [email protected] Website: www.tma.org.hk ____________________________________________________________________________
TMA is a company incorporated with limited liability
Published by TMA Office
COO’s Message
Events Update
Latest Developments of ACI Asia
3
Seminar on Credit Derivatives
3
Drinking Party 3
Seminar on Treasury Governance
4
Asia Sukuk Summit 4
Commercial Crime Inves-tigation Course
5
Education Workshops on Islamic finance
5
Seminar on Currencies Trend
6
Education & Careers Expo 2009
6
Upcoming Events
Islamic Bond Market in Hong Kong
2
Cover
COO’s Message 1
Islamic Finance
TM Certificate 6
Seminar on Commodity 6
Seminar on the Art of Facing Changes
7
Career Talk in CUHK 7
E-Training 7
Training on Private Banking
8
Signing MOU - ICMA 8
Profile Raising Activity 8
Donation to CDF 8
Press Briefing 10
TM Cert. in Beijing 9
2nd Talk on Commodity 9
TM Cert. (Back Office Operations)
9
“Who Robbed the World’s Banks?”
10
Seminar on Shanghai’s Role & Developments
10
Annual General Meeting 11
Model Code Exam 11
TM Summit 2009 11
CPT Requirements 12
Membership Renewal 12
Schedule of Certificate Programmes
12
2
The HKMA has recently published an article reviewing the latest Hong Kong dollar debt market developments in 2008, with one section focusing on HKMA’s four‐part approach to pro‐moting development of an Islamic bond (sukuk) market in Hong Kong. Following are some key points.
1. Facilitating infrastructure development. The HKMA undertook a study to assess the market potential and identify existing hurdles in developing the Islamic financial market in Hong Kong. The findings suggested that while Hong Kong’s current legal and regulatory infrastructure can readily support the development of a sukuk market, certain changes and clarifications are needed for Hong Kong’s tax laws to level the playing field for Islamic bonds vis‐à‐vis conven‐tional bonds. Based on these findings, the HKMA is now further supporting the work of the Government in pursuing modifications to the tax regime. In addition, the HKMA made several enhancements to the interbank clearing and settlement systems in the last quarter of 2008 to cater for interbank processing of Islamic financial transactions. Enhancements included the creation of a new payment code specifically for Islamic‐related transactions, a new facility in the US dollar and euro Real Time Gross Settlement (RTGS) systems for segregation of Islamic‐related funds, and improvements to the Central Moneymarkets Unit (CMU) for custodian, clearing and settle‐ment services for Islamic bonds in Hong Kong.
2. Raising Hong Kong’s international profile. To raise Hong Kong’s profile as an emerg‐ing centre for Islamic finance, the HKMA has been pursuing strategic partnerships with other Islamic financial centres and participating in key industry forums. For example, a memorandum of understanding was signed between the HKMA and the Dubai International Financial Centre Authority to strengthen co‐operation in promoting development of Islamic finance, and road shows to the United Arab Emirates and Jordan were also organised to present seminars on Hong Kong’s financial platform.
3. Raising market awareness. To promote market awareness of Islamic finance in Hong Kong, the HKMA, through close co‐operation with the TMA, has been organising a range of Is‐lamic finance education seminars and workshops for local industry players, government officials and regulators.
4. Encouraging product development. To promote the development of Islamic financial products in Hong Kong, the HKMA has been liaising with the private sector and government agencies to help resolve any tax and regulatory issues involved. So far, a wide range of shariah‐compliant financial services and products have already been introduced in Hong Kong, signaling the readiness of Hong Kong’s financial market platform to accommodate Islamic finance.
For further details on the HKMA’s four‐part strategy to developing an Islamic bond mar‐ket in Hong Kong, please refer to the original article featured in the HKMA’s March 2009 Quar‐terly Bulletin, available in both English and Chinese at its website: http://www.info.gov.hk/hkma/eng/public/qb_index.htm.
Development of Islamic bond market in Hong Kong
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Events Update
Following a seminar on credit deriva‐tives held in November 2008, TMA organized another session on 14 January 2009 to further discuss this topic. Mr. Water Cheung, Executive Board Member of TMA shared his valuable in‐sight and rich experience in this area. In view of the recently issues on “Minibond”, Mr. Cheung also analysed it using case‐study approach.
Seminar on Premier on Credit De‐rivatives and Correlation Products
Latest developments of ACI Asia ACI Mongolia was admitted as an affili‐ated member of ACI The Financial Markets As‐sociation on 12 March 2009 at the occasion of the 48th ACI World Congress held at South Africa. Mr. Manfred Wiebogen, President of ACI, noted that the affiliation of ACI Mongolia provided a huge chance helping to develop such an emerg‐ing country in this difficult market environment. A strong focus would first be in divulging “The Model Code” and their International Traders and Back Office Certification programme to the local trading community.
Mr. Ng presenting souvenir to Mr. Cheung
Our Individual Members enjoyed a good evening at the drinking party on 16 January 2009. Members were provided an op‐portunity to mingle with their peers under a relaxed environment after work. More impor‐tantly, our Executive Board and Committee Members also took the chance to exchange views with TMA Members. At the party, our C.O.O., Mr. Stephen Ng briefly introduced the recent development of TMA, including the various Treasury Markets Certificates and new Member benefits. Members’ feedback on TMA’s services is encouraging and many of them hoped that TMA could organize more similar events in the future.
Drinking Party for Individual Members
Members and Committee Members mingling at the party
4
The recent financial market turbulence has led to increasing focus on treasury governance and controls, particularly related to derivatives. Many financial corporations are undertaking re‐evaluation of their approach in this area. TMA was delighted to have Mr. Ben Higgin, Director of Pricewaterhouse‐Coopers Hong Kong, to discuss this issue at the seminar held on 21 January 2009. He highlighted some of the best practices in governance and controls to help companies reduce the risk of negative expo‐sure. He also emphasized that strong governance is the first line of defence against the various risks.
Seminar on Treasury Governance and Controls Best Practice
Mr. Higgin speaking on corporate governance
Following the two London Sukuk Summits held in 2007 and 2008, the success was ex‐tended to the Asia Sukuk Summit held in Hong Kong between 18 and 19 February 2009. With TMA’s support, ICG Events organized the first of its kind Asia Sukuk Summit outside London along the theme “Towards a New Silk Route for Islamic Finance”. The event brought together senior government officials and financial supervisors, key international Islamic market practitio‐ners and world‐renowned Shariah scholars to deliver an important forum for networking and identifying opportunities and strategies in developing Islamic finance in the region, which has been a highlight of HKSARG’s Budget Speech this year. More than 100 participants attended. The seminar was very well received.
Asia Sukuk Summit
Market experts sharing views at the summit
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With a view to raising industry awareness on Islamic finance, the TMA has organized a series of educational seminars and workshops on Islamic finance for our Members. Commodity Murabahah is currently one of the most widely used tools by Islamic institutions for Shariah‐compliant liquidity management. A workshop was conducted on 19 February 2009 to provide the participants with an opportunity to learn more about Commodity Mura‐bahah products as well as the standard documents that are being developed. Experts in Islamic finance who talked in workshop included Mr. Nik Nor‐ishky Thani, Executive Director, Islamic Finance, Dubai International Financial Centre; Dr. Daud Bakar, Shariah Scholar, Malaysia; and Mr David Testa, Chief Executive Officer, Gatehouse Bank.
Their UK experience in developing the related products and their latest initiatives in standardizing the documentation was also shared. The response of the audience was overwhelming. The second workshop on Islamic Finance was held on 25 Feb 2009 to discuss the key concepts of Islamic finance, the role of Shariah board, the latest Islamic banking and finance developments, as well as Hong Kong’s potential as an Islamic financial hub. Dr. Aly Khorshid, Islamic Finance Scholar & Shariah Consultant, was the key speaker. There were good exchange of dif‐ferent views.
Education workshops on Islamic finance
The annual Commercial Crime Investigation Course was held by the Commercial Crime Bureau in February 2009. Similar to previous years, TMA took part in the training by delivering lectures on financial market, treasury products and activities on 18 February 2009 to inspectorate officers of the Hong Kong Police Force as well as officers from both local and overseas law enforcement agencies. Lecturers included Mr. Terence Lee, Membership Sub‐Committee Member; Mr. Wilkie Lai, Education Sub‐Committee Member; Ms. Winnie Tang, Financial Application Specialist Trainer, Thomson Reuters; and Mr. Jerry Tee, Financial Applica‐tion Specialist Trainer, Thomson Reuters. Feedback from Police was good.
Commercial Crime Investigation Course
Mr. Terence Lee
Mr. Aly Khorshid
Three experts speaking at the first series of Islamic finance workshop
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TMA and Bloomberg jointly organized a seminar on charting the currency trend on 19 February 2009. At the seminar, Mr. Gregg Tan, Application Specialist, Technical Analysis, Asia Pacific demonstrated how to use technicals to reveal FX sentiment and trend. The participants found the section on Pivot Points to be very useful for their intraday dealing and trading.
Seminar on Charting the Currencies Trend
Education & Careers Expo 2009 TMA participated in The Education & Careers Expo 2009 organized by the Hong Kong Trade Development Council held be‐tween 19 and 22 February this year to further promote the treasury markets among the stu‐dents and other interested parties. We re‐cruited some university students to assist in the Expo providing them with an opportunity to learn more about the TMA. During the Expo, four full‐time students joined as TMA Mem‐bers. Visitors showed a lot of interest in our certificate programmes. Mr. Woody Chan shared his experience about the treasury markets in the career talk on 21 February, which attracted 40 visitors. Mr. Chan is a Member of Professional Membership Committee. The response was positive.
Mr. Tan talking on the currency trend
Mr. Philip Tse giving thanks to Mr. Chan for being the speaker of the career talk
Treasury Markets Certificate The 8th course of the Treasury Markets Certificate in collaboration with the Hong Kong Institute of Bankers was launched on 27 February 2009. As usual, a full‐house class was achieved and Mr. Carlos Cheung, Educa‐tion Sub‐Committee Member of TMA, contin‐ues to teach the programme with his expertise.
Given the increasing influence of the Mainland on strategic oil and other items, TMA has been organizing a series of talks on commodity. Mr. Simon Ting, Chief Executive Officer, Tanrich Futures Limited spoke to Members on 4 March 2009 on fundamentals of major commodity types, correlation of com‐modity prices and stock market and invest‐ment opportunities.
Seminar on Commodity & the Investment World
Mr. Simon Ting
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As the Chairman of TMA, Mr. Eddie Yue, Deputy Chief Executive of HKMA, deliv‐ered a talk on “Looking beyond the Financial Crisis: Hong Kong’s future role as an Interna‐tional Financial Centre” during a College As‐sembly on 20 March 2009 in the Chinese Uni‐versity of Hong Kong. The talk attracted 1,500 students to attend and the response was overwhelming.
Career Talk in CUHK
In view of the global financial tsunami, we had organized the above seminar on 19 March 2009 to provide a platform for Mem‐bers to share different ways to face difficult situations during the gloomy period. Ms. Monisa Wan, Director, Principal Consultant, FNAO Consulting Ltd. and Dr. Katherine Kot, Connexion Psychological Practice Ltd. shared their valuable insights and experiences on how to inspire a mindset to get prepared and to lead changes.
Seminar on the Art of Facing Changes
Dr. Katherine Kot
Ms. Monisa Wan
Mr. Yue talking to CUHK students
The e‐Training Programme was launched in March 2009 in collaboration with Thomson Reuters Markets Academy. TMA Members in Hong Kong and from overseas can now make use of this service to keep abreast of the latest market developments at their convenience. Members would be granted 1 CPT credit upon completion of 1 hour of e training session under this programme, subject to a maximum of 2 CPT credits per year for Members in Hong Kong and no limit for Overseas Members. Two TMA exclusive e‐Seminars were successfully held on 23 March and 20 April, with the theme “Current RMB Trend and Outlook”. The participation rate has been high and Members are encouraged to interact with the speaker(s) and other participants in the training sessions.
E‐training
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TMA and the International Capital Market Association (ICMA) agreed to work together more closely on matters of mutual concern and have signed a Memorandum of Understanding (MOU) on 27 March 2009 un‐derlining our cooperative approach to pro‐moting best practice in capital markets. Both parties will foster enhanced cooperation and links through seminars and events for our re‐spective memberships. There would also be an exchange of information and consultations in the critical areas of regulation and self regu‐lation, market infrastructure, and professional training and accreditation.
Signing MOU with ICMA
TMA introduced a new service for our Institutional Members this year. On request by our Members, TMA would organize in‐house training of finance related topics for them as and when appropriate. A 3‐day training course on Private Banking was organized par‐ticularly for BOCI, one of our Institutional Members, between late March and early April. BOCI has assigned 75 staffs to attend. Lectur‐ers included Mr. Michael Wong, President of CT Risk Solutions Ltd., and his colleague Ms. Grace Fung, and Mr. Raymond Lam, Senior Manager, Banking Development Department of HKMA. This course is also available for all Institutional Members.
Training on Private Banking
Mr. Wong delivering lecture at the training course tailor‐made for BOCI
TMA recently lined up media inter‐views for our Executive Board and Committee Members with Hong Kong Economic Journal. The respective articles of Mr. Eddie Yue, Chairman of TMA; and Mr. Woody Chan, Professional Membership Committee Mem‐ber, were published in the April issue while the one of Ms. Anita Fung, Executive Board Member could be found in the May issue. For full text of the articles, please visit our web‐site.
Profile Raising Activities
Child Development Matching Fund (CDMF) Cheque Presentation Ceremony was held on 9 April 2009. Cheques totalling about HK$110,000 were presented by Mr. Daryl Ho, Mr. Eddy Poon and Mr. Stephen Ng of TMA to Mr. Moses Cheng, Chairman of CDMF. We were also honoured to have Dr. Philemon Choi, Vice Chairman of CDMF and Ms. Carol Yip, Deputy Secretary for Labour & Welfare Bureau attending.
Donation to Child Development Fund
Group photo taken at the ceremony
9
TMA recently announced the intended launch of a Professional Course in Back Office Operations of Treasury Markets in collabora‐tion with Li Ka Shing Institute of Professional and Continuing Education (LiPACE) of the Open University of Hong Kong. The course aims to provide a specialized training in the back office treasury operations related to trade confirmations, settlement and clearing, and risk management and control. The first intake of this course is sched‐uled to commence in June 2009. Upon satis‐factory completion of the course, participants will be awarded a “Certificate of Completion” jointly issued by TMA and LiPACE. Success‐ful participants will be eligible for admission as a TMA Member and their membership fee in that corresponding year will be waived ac‐cordingly. TMA Members can enjoy 10% dis‐count on the course fee. To provide more de‐tails, an information session was held on 29 April 2009.
Professional Course in Back Office Operations of Treasury Markets
Riding on the success of the first Treasury Markets Certificate Programme in Beijing last year, TMA has organized another four‐day training course on treasury markets between 23 and 26 April 2009. This professional training course is designed for Mainland treasury markets practitioners, covering the theo‐retical and practical aspects of treasury business management, foreign exchange market, bond market, derivatives, risk management, treasury operation and the Model Code, as well as the latest devel‐
opment in the international financial markets. We were honoured by the presence of Mr. Anthony Yuen, one of the founding Committee Members of TMA, at the opening ceremony. 23 practitioners/interested persons par‐ticipated in the course. Lecturers in‐cluded Mr. Philip Lau, Mr. Wilson Chan, Mr. Carlos Cheung and Mr.
Benjamin Deng of the TMA; and Mr. David Wong of Thomson Reuters and Mr. Michael Li of Bloomberg.
Treasury Markets Certificate Programme for the Mainland
Mr. Barry Cheung, JP, Chairman of Hong Kong Mercantile Exchange delivered a talk on commodity to TMA Members on 14 May 2009. Important implications on financial market and China were discussed, including the current market trends and the Exchange’s risk management approach to safeguard trans‐parent commodity trading. Upon completion of the seminar, a cocktail reception was held.
Second Talk on Commodity
Mr. Ng presenting souvenir to Mr. Cheung
Final assessment ‐ group presentation
Group photo taken at the opening ceremony
10
TMA held a press briefing on Hong Kong debt market development on 20 May 2009 to in‐troduce TMA to the media and brief them on the background of Hong Kong bond market and the positive impact of developing the bond market through the Government Bond Programme. TMA Members who presided at the press briefing included Mr. Lawrence Lam, Hong Kong Branch Manager & Regional Head, Greater China, The Royal Bank of Scotland; Mr. Justin Chan, Head of Hong Kong Trading, The Hongkong and Shanghai Banking Corporation; and Mr. Dennis Wong, Senior Manager, Head of Markets, Treasury Division, Hang Seng Bank Limited. The briefing session was very well received and the media coverage was good. Over 40 media representatives attended.
Press Briefing ‐ Hong Kong Debt Market Development
TMA’s profile being raised through media’s coverage
The press asking bond related questions at the briefing session
Upcoming Events
Seminar on “Who Robbed the World’s Banks?” This seminar will be jointly organized with HKU SPACE on 26 May 2009 to examine the collapse of the global financial markets and how Hong Kong survived. Mr. Leo F. Goodstadt, Honorary Fellow, The University of Hong Kong, will share his views on the important lessons learnt for improving the stability and integrity of other international financial centres.
Seminar on Shanghai’s role & development as the future IFC for China and RMB
In collaboration with Thomson Reuters, TMA has invited Mr. Cho Chi Ming, the Executive Director of Hong Kong Economic Journal, as our speaker to share his insights on Shanghai’s role and develop‐ment as the future International Finance Centre for China and RMB, which is a mat‐ter of key concern for our Members. Mr. Cho is an excellent speaker with good knowledge on the latest situation of the global financial market. He will offer new perspectives on the RMB issues.
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Annual General Meeting
TMA is going to hold the third Annual General Meeting on 2 June 2009. Significant achievements of TMA throughout 2008 will be reported in the meeting. We will also take this opportu‐nity to announce future developments and goals of TMA for the years ahead.
Model Code Examination
As a pass in the TMA organized Model Code Examination is one of the requirements of the compulsory Upgrading Scheme for Associate Members, the first Model Code Examination will be held on 20 June 2009 while the two‐hour lec‐ture will take place on 15 June. The lecturer is Mr. Carlos Cheung, Education Sub‐committee Member. Associate Members who have registered for the Model Code Examination will be arranged to attend the course. Details are obtainable on our website.
Treasury Markets Summit 2009 Treasury Markets Summit 2009 will be held on 3 July 2009 in Beijing. In their visit to Beijing between 23‐26 April 2009, Mr. Stephen Ng, COO of TMA and Mr. Paul Chui, Senior Manager of HKMA visited National Association of Financial Market Institutional Investors (NAFMII), our counterpart in China, China Banking Regulatory Commission (CBRC), People’s Bank of China, State Administration for Foreign Exchange (SAFE), China Banking Association, HK Trade Development Council and HK Government Representative Office to promote this Summit.
We will have Mr. Eddie Yue, Chairman of TMA’s Executive Board and Deputy Chief Executive of the HKMA speaking at the opening session. Renowned speakers include Mr. Shi Wen Chao, Secretary‐General of NAFMII; Mr. Luo Ping, Director‐General of CBRC; Mr. Law‐rence Lam and Ms. Anita Fung, Board Members of TMA; and Mr. Simon Ting of Tanrich Fu‐tures Limited. Details of the Summit will be announced on TMA’s website soon.
Group photo taken during our visit to SAFE
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CPT Requirements According to the decision made by the Profes‐sional Membership Committee, the deadline for the 2007/2008 Continuous Professional Training (CPT) requirement will be further extended to 30 June 2009. Members who have not yet fulfilled the CPT require‐ment for 2007 are allowed to make it up together with the CPT credits required for 2008 before the above specified deadline. Members have to note that those who are not able to gain enough CPT credits by the end of June 2009 will be reclassified as Associate Members effective from 1 July 2009 without further notice.
Membership Renewal Despite the current financial atmosphere, we have achieved a satis‐factory retention rate of both Individ‐ual and Institutional Members for this year. We hereby thank all Members for your continued and staunch sup‐port to TMA.
Schedule of launching Courses of Certificate Programmes
Course Name Launch Date
Professional Course in Back Office Operations of Treasury Markets June 2009
Professional Certificate in Treasury Markets (Treasury Products Marketing & Financial Management)
Around August 2009
Risk Management Programme for Financial Institutions September 2009
Treasury Markets (Debt Securities) Certificate Programme September 2009
Professional Certificate in Treasury Markets (Derivatives & Structured Products) ‐ 2nd in‐take
To Be Confirmed
Treasury Markets Certificate ‐ 9th in‐take To Be Confirmed