The Asian Bond Market Initiative (ABMI) was endorsed at the ASEAN+3 Finance Minister's meeting on August 2003 to develop the Asian bonds market, discuss issues of currency and maturity mismatches, and promote the soundness of the market by channeling regional savings.
ABMI Group of Experts (GoE)
Central banks and Finance Ministers of ASEAN+3 countries, with the common goal of bond market development, established four Task Forces, in order to discuss a plan to increase regional currency denominated bond issuance and demand, regulatory frameworks, and bond market infrastructure improvement measures.
For the past two years, KSD has been active as the chair of GoE under Task Force 4, in which CSDs and ICSDS and global custodians participated as members and conducted active discussions.
In the second GoE meeting held in Seoul July 2008, two working groups -the RSI group and the Barrier group -were formed. The focus of the RSI group is the feasibility of the RSI option, and the Barrier group on obstacles to cross-border and regional settlement. KSD heads the RSI group and reviews legal, operational, and business feasibility, and also makes efforts to estimate costs for cross-border bond settlement within the ASEAN+3 region.
After a year and half of study and discussion, the GoE released the final recommendation for the development of the Asian bond market infrastructure, which was submitted to the ABMI in April 2010, completing the GoE activities.
ASEAN+3 Bond Market Forum (ABMF)
The ABMF is a forum in Task Force 3 of the ABMI, and it was launched as a follow-up measure of the RSI establishment promotion. It was established in May 2010, in the ASEAN+3 Finance Ministers Meeting held in Uzbekistan, and it is currently being operated divided into two sub-forums.
Sub-forum 1 is composed of regulators and self-regulatory organizations with the objective of improving market practices and draw a plan for deregulation for each country, and it is chaired by the Tokyo Stock Exchange.
Sub-forum 2 aims to reduce the costs of cross-border bond transactions by realizing STP. Institutions directly involved in securities operations such as central banks, central securities depositories, and custodians participate as members, and the chair is KSD. The forum focuses on analyzing cross-border bond transaction processes, drawing tasks for international standardization of transaction processes, and establishing an action plan.
Cross-border Settlement Infrastructure Forum (CSIF)
The CSIF was established in May 2013 at the 16th ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting to discuss detailed work plans and procedures for improving cross-border settlement in the region and to further explore the possibility of establishing a regional settlement intermediary. The CSIF is held back-to-back with the ABMF meeting since the first CSIF kicked-off at the 13th ABMF in Tokyo, Japan.