Handbook on Securities Statistics Overview of a joint BIS-ECB-IMF initiative 0

Overview The 20 recommendations under the G-20 data gaps initiative The Handbook on Securities Statistics Part 1 of the Handbook - Debt securities issues Part 2 of the Handbook - Debt securities holdings Implementation of Part 1 and Part 2 of the Handbook Part 3 of the Handbook - Equity securities The Handbook on the web 1

The G-20 data gaps initiative Data gaps As an inevitable consequence of the ongoing development of markets and institutions Are highlighted when a lack of timely, accurate information hinders the ability of policy makers and market participants to develop effective responses Recent crisis has reaffirmed an old lesson – good data and good analysis are the essentials of effective surveillance and policy responses at both the national and international levels April 2009: G-20 Finance Ministers and Central Bank Governors Working Group on Reinforcing International Co-operation and Promoting Integrity in Financial Markets called on the IMF and the FSB to explore information gaps and to provided appropriate proposals Following widespread consultation, a broad consensus over information gaps 20 recommendations 2

The G-20 data gaps initiative Inter-Agency Group on Economic and Financial Statistics (IAG) Has worked together to start closing some data gaps Has prepared, together with the FSB, G-20 Progress Reports on the G-20 data gaps initiative (G-20 meetings in St Andrews on 7 November 2009 and in Busan on 4 and 5 June 2010) and two senior officials meeting organised by the IMF and the FSB (Washington, 8-9 July 2009 and Basel, 8-9 April 2010) Recommendation 7 on data gaps states: “Central banks and, where relevant, statistical offices, particularly those of the G-20 economies, to participate in the BIS data collection on securities and contribute to the further development of the BIS-ECB-IMF Handbook on Securities Statistics (Handbook). The Working Group on Securities Databases (WGSD) to develop and implement a communication strategy for the Handbook.” Other recommendations on PGI website, Financial Soundness Indicators, IIP, GFS, CDS, public sector debt, real estate prices, etc. 3

The Handbook on Securities Statistics Background June 2007: recommendations in CGFS report October 2007: recommendations in G8 report November 2007: reconvened IMF Working Group on Securities Database (WGSD) March 2008 in Washington: Irving Fisher Committee (IFC) workshop “Challenges to improve global comparison of securities statistics” (see IFC Publication on …) Upon general demand, BIS-ECB-IMF took joint initiative to develop a Handbook on Securities Statistics (HSS) Initially to cover debt securities issues (Part 1) and holdings (Part 2) Published in May 2009 and in September 2010 Decision has been taken to add Part 3 on non-debt securities Including equity securities 4

The Handbook on Securities Statistics Objectives Improve information on securities markets Develop a conceptual framework for presentation of statistics on different types of securities issued and held Consistency with existing international statistical standards 5

Structure of the Part I of the HSS Structure Section 1: Introduction Section 2: Main features of debt securities Section 3: Institutional units and sectors Section 4: Securitisation Section 5: Accounting rules, valuation, and recording of accrued interest Section 6: Classification of debt securities Section 7: Detailed presentation tables Section 8: Metadata Annexes: structured debt securities; Islamic debt securities; market value and nominal value; security-by-security databases; example of metadata for debt securities statistics Objectives, scope and consistency Part I of the Handbook - Debt securities issues

Content of the Part I of the HSS Content Follows international statistical standards such as 2008 SNA or BPM6 Goes beyond these standards by Presenting refinements in Developing more detailed financial instrument classifications (by currency, maturity, interest rate, default risk, etc.) Looking at securitisation operations and units involved in securitisation Delineation of three types of securitisation Dealing with borderline cases such as structured debt securities Having an annex on Islamic debt securities Describing security-by-security databases Looking at examples of metadata Developing detailed presentation tables Part I of the Handbook - Debt securities issues 7

Stylised presentation table Data with breakdowns by maturity and interest rate are not collected in the first step of the data collection; data with breakdowns by maturity and interest rate are covered in the second step of the data collection which will start in 2011 and will cover all markets only.

Structure of the Part I of the HSS Published in September 2010 Structure Section 1: Introduction Section 2: Main features of debt securities holdings Section 3: Stocks, flows and valuation of debt securities holdings Section 4: Specific operations related to debt securities holdings Section 5: Debt securities holdings in a from-whom-to-whom framework Section 6: Detailed presentation tables Annexes: The Coordinated Portfolio Investment Survey, security-by-security databases and security-by-security collection of holder information; groups of corporations as holders of debt securities Objectives, scope and consistency Part 2 of the Handbook - Debt securities holdings 9

Content of the Part I of the HSS Content Follows international statistical standards such as 2008 SNA or BPM6 Goes beyond these standards by elaborating on additional issues Presenting refinements in referring to holdings of debt securities By money-issuing corporations, institutional investors or securitisation corporations With breakdowns by type of interest rate In the context of the IMF Coordinated Portfolio Investment Survey (CPIS) Uses two types of stylised presentation tables on debt securities holdings Presentation table A based on the “residence of holder” approach Presentation table B reflecting the “from-whom-to-whom” approach Part 2 of the Handbook - Debt securities holdings 10

Content of the Part I of the HSS Specific sections on Debtor approach and creditor approach to recording accrued interest Special operations (reverse transactions, short-selling, depository receipts, stripped securities, nominee accounts) From-whom-to-whom framework Transactor principle and debtor/creditor principle Part 2 of the Handbook - Debt securities holdings 11

Content of the Part I of the HSS Presentation table A based on the “residence of holder” approach Part 2 of the Handbook - Debt securities holdings 12

Content of the Part I of the HSS Presentation table B reflecting the “from-whom-to-whom” approach Part 2 of the Handbook - Debt securities holdings 13

Content of the Part I of the HSS Part 2 of the Handbook - Debt securities holdings 14

Content of the Part I of the HSS Part 2 of the Handbook - Debt securities holdings 15

Content of the Part I of the HSS Implementation of Part 1 and Part 2 of the Handbook BIS to coordinate transmitting data to its databank to fill presentation tables according to the Handbook Around 40 non-euro central banks have nominated contacts Major exercise for many central banks and BIS Process longer than expected, not yet finalised 17 central banks have already reported data (10 from G20 countries) Presentation tables as described in Part 1 of the Handbook expected to be transmitted by end 2010 at the earliest ECB to coordinate with EU central banks (Statistics Committee within the European System of Central Banks) Implementation of ESA 2010 in 2014 (in line with the Handbook) Use of the Centralised Securities Database (CSDB) 16

Content of the Part I of the HSS Part 3 of the Handbook - Equity securities Part 3 of the Handbook on issues and holdings of non-debt securities Listed and unlisted shares Investment fund shares or units Will be coordinated by the ECB in 2011 Publication foreseen in

Content of the Part I of the HSS Handbook on the web Handbook on Securities Statistics (Part 1 and Part 2) available on the IMF website: rities+Statistics&col=&submit.x=37&submit.y=7http:// rities+Statistics&col=&submit.x=37&submit.y=7 ECB website: ecb-imf_pt2.pdf?502985fd3c4a2fd35f3be23d9c7db3f7http:// ecb-imf_pt2.pdf?502985fd3c4a2fd35f3be23d9c7db3f7 18