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Handbook on Securities StatisticsOverview

of a joint BIS-ECB-IMF initiative

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Overview

• The 20 recommendations under the G-20 data gaps initiative• The Handbook on securities statistics• Part 1 of the Handbook on debt securities issues• Part 2 of the Handbook on debt securities holdings

• Timeline, structure and content• Specific sections• Presentation tables A and B• From-whom-to-whom table on financial transactions• The transactor principle and the debtor/creditor principle

• Implementation of Part 1 and Part 2 of the Handbook• Part 3 of the Handbook on equity securities• Handbook on the web

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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 provided appropriate proposals

• Following widespread consultation a broad consensus over information gaps

• 20 recommendations

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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 a senior officials meeting organised by the IMF and the FSB in Basel on 8 and 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.

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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: 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 Handbook on Securities Statistics (HSS), initially (Part 1 and Part 2) to cover debt securities issues and holdings

• Part 1 on the Handbook was published in May 2009, Part 2 in September 2010

• Decision has been taken to add Part 3 on equity securities• 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

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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 consistencyPart I of the Handbook on debt securities issues

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Content of the Part I of the HSS • Content

• Follows international statistical standards like 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 like 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 on debt securities issues

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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.

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Structure of the Part I of the HSS • Timeline

• September 2009: Outline of Part 2 agreed by BIS, ECB and IMF

• October 2009: Comments from Expert Group

• End 2009: First draft coordinated by the ECB

• March 2010: First draft discussed by the Review Group

• September 2010: Publication of Part 2 of the Handbook

Objectives, scope and consistencyPart 2 of the Handbook on debt securities holdings

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Structure of the Part I of the HSS • 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 consistencyPart 2 of the Handbook on debt securities holdings

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Content of the Part I of the HSS • Content

• Follows international statistical standards like 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 on debt securities holdings

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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 on debt securities holdings

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Content of the Part I of the HSS Presentation table A based on the “residence of holder” approach

Part 2 of the Handbook on debt securities holdings

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Content of the Part I of the HSS Presentation table B reflecting the “from-whom-to-whom”

approach

Part 2 of the Handbook on debt securities holdings

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Content of the Part I of the HSS Part 2 of the Handbook on debt securities holdings

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Content of the Part I of the HSS Part 2 of the Handbook on debt securities holdings

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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 Data Bank to fill presentation

tables according to the Handbook

• Around 40 non-euro area central banks have nominated contacts

• Major exercise for many central banks and BIS: process longer than expected

• 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 Handbook)

• Use of the Centralised Securities Database (CSDB)

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Content of the Part I of the HSS Part 3 of the Handbook on equity securities

• Part 3 of the Handbook on issues and holdings of equity securities

• Listed and unlisted shares

• Investment fund shares or units

• Will be coordinated by the ECB in 2011

• Publication foreseen in 2011

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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:

• http://www.imf.org/external/ns/search.aspx?NewQuery=Handbook+Securities+Statistics&col=&submit.x=37&submit.y=7

• ECB website:

• http://www.ecb.int/stats/pdf/money/securities/wgsd/sec_handbook_bis-ecb-imf_pt2.pdf?502985fd3c4a2fd35f3be23d9c7db3f7