EMTA : EM Background : Significant Market Events and EMTA Projects EM Background
Significant Market Events and EMTA Projects


2014 

  • Russia Annexes Crimea; Ukraine Unsettled; US, EU Impose Limited Sanctions; S&P Cuts Russia and Ukraine Debt Ratings
  • Argentina Exchange Bonds Ruled in Default After US Supreme Court Declines to Hear Hold-Out Case; Second Circuit and Griesa Decisions Stand, Requiring Pari Passu Treatment for Hold-Outs; EMTA Recommends Flat Trading for Most Argentina Bonds
  • EMTA Initiates Forums in Frankfurt, Zurich, Boston and LA
  • Market Adopts MAE Exchange Rate for ARS NDF Settlements

2013 

  • Reported EM Debt Trading Volumes at $5.571 Trillion in 2013
  • US Fed Begins Tapering
  • S&P Downgrades EU One Notch from Triple A to AA+; Downgrades France and Netherlands to AA
  • Market Still Awaits Outcome in Argentine Holdout Litigation
  • UK Loses Triple A Rating from Moody’s and Fitch’s
  • Philippines Earns Investment Grade from S&P
  • EMTA Sponsors Industry Forums on Argentina, Venezuela and Sovereign Debt Architecture
  • Venezuela President Chavez Dies, Is Succeeded by Nicolas Maduro

2012 

  • Reported EM Debt Trading Volumes Ease to US$5.56 Trillion in 2012 
  • ICE to Buy NYSE /Euronext 
  • US 2d Circuit Court Upholds Griesa Ruling Against Argentina; Market Awaits Outcome on Remedy 
  • Venezuela Re-elects President Chavez 
  • UST Confirms NDF’s Subject to Dodd-Frank 
  • Enrique Pena Nieto Elected President of Mexico 
  • Uruguay Earns Investment Grade Rating from S&P and Moody’s 
  • EMTA Sponsors Industry Gatherings on Argentina, Greece; Initiates Miami Forum 
  • Greece Completes Largest Sovereign Debt Restructuring; S&P Lifts Greece’s Debt Rating by Six Notches to B- 
  • EMTA Recommends W/I Trading Forms for Greece 
  • Xi Jinping Assumes Leadership of the People's Republic of China  
  • S&P and Moody’s Downgrade Many European Sovereigns, including Spain and Italy; France Loses AAA Rating from S&P 
  • Venezuela Withdraws from ICSID 

2011 

  • EM Debt Trading Volumes Ease to US$6.5 Trillion in 2011 
  • Bill Rhodes Delivers Keynote Address at EMTA Annual Meeting 
  • Europe Struggles Toward Greater Fiscal Integration in Effort to Preserve Euro Amidst Spreading Contagion from Greece to Portugal, Spain and Italy
  • Dodd-Frank Rules Proposed, including Volcker Rules 
  • Greece Gets Further Downgrades and Seeks 2d Support Package from EU/IMF
  • Christine LaGarde Succeeds Dominique Straus-Kahn as IMF Managing Director
  • US Loses AAA Credit Rating from S&P
  • Brazil Upgraded by S&P One Notch to BBB
  • Hungary Downgraded by Moody's and S&P Below Investment Grade

2010 

  • EM Debt Trading Volumes Rebound to U.S.$6.765 Trillion in 2010
  • Ireland Gets EuroZone/IMF Support Package; EU Outlines Future (after mid-2013) Bailout Plan, including Restructuring Mechanism
  • Dilma Rousseff Elected to Succeed Lula da Silva as President of Brazil 
  • China Launches Offshore Renminbi Trading Market in Hong Kong 
  • Spain Loses AAA Debt Rating  
  • EMTA Initiates Central America/Caribbean Forum
  • Argentina Completes Second Debt Exchange/Total Debt Now Restructured at 92% of 2001 Level
  • Dubai World Announces Restructuring/EMTA Initiates Dubai Forum
  • Euro-Zone Countries Establish Euro 440 Billion European Financial Stability Facility (EFSF) 
  • Greek Bond Rating Cut to Junk Status and Greece Gets EU/IMF Support Package
  • Collective Rating of EM Sovereign Bonds in EMBI Global Reaches Investment Grade
  • U.S. Enacts Dodd-Frank Act to Reform/Punish Financial Markets

2009 

  • EM Debt Trading Volumes Show Small Rise to Nearly U.S.$4.5 Trillion in 2009 
  • Limited EMTA Survey Shows U.S.$1.2 Trillion in EM CDS Trading in 2009 
  • Global Banking System Stabilizes and Some Growth Resumes
  • Mexico's Finance Minister Carstens Addresses EMTA Gathering, Later Named Central Bank President
  • G20 Replaces G8 as Main Global Economic Policy Body
  • EMTA Upgrades its Website and Changes IT Platform
  • ISDA/EMTA Issue Market Practices for CDS, and Non-Deliverable Swaps
  • Governments Coordinate More Fiscal Stimulus and Propose Widespread Financial Reforms

2008 

  • EM Debt Trading Volumes Fall to U.S.$4.2 Trillion in 2008
  • Ecuador Selectively Defaults on Eurobonds
  • IMF Grants Support Financing to Hungary, Iceland, Pakistan and Ukraine
  • Governments Worldwide Provide Fiscal Stimulus and Rescue Banks
  • Burst Housing Bubble and Sub-Prime Mortgage Crisis Leads to Global Financial Crisis and Recession
  • EMTA Initiates Forums in Sao Paulo and Buenos Aires
  • Brazil and Peru Receive Investment Grade Ratings
  • Global Credit Crunch Forces Wall Street Contraction
  • Dmitry Medvedev Elected President of Russia

2007 

  • Annual EM Debt Trading Volumes Nearly U.S.$6.5 Trillion in 2007
  • Cristina Fernandez de Kirchner Elected President of Argentina
  • US FOMC Initiates Monetary Easing Following Sub-Prime Mortgage Crisis
  • China Launches Sovereign Wealth Fund
  • EMTA Presents "Focus on Africa" Seminar Series
  • Bulgaria and Romania Join the EU
  • EMTA Publishes Standard Terms for Non-Deliverable Currency Options
  • US-Peru Free Trade Agreement Takes Effect
  • Several EMTA-sponsored Venezuela and Nigeria Warrant Delivery Facilities Completed

2006 

  • Annual EM Trading Volumes Surpass U.S.$6.5 Trillion for 2006
  • Brazil's Central Bank President Meirelles Addresses EMTA's Annual Meeting
  • EMTA-Sponsored Benefits in London and NYC Raise Nearly $1 Million for EM Charities
  • Felipe Calderon Elected President of Mexico, President Lula Re-Elected in Brazil
  • EMTA Sponsors its First Annual Asian Forum
  • EMTA Launches Series of Presentations on Local Markets and Investor Topics
  • Brady Bonds Retired by Brazil, Nigeria, Panama, Philippines, Uruguay and Venezuela
  • Russia Agrees to Prepay Soviet-Era Paris Club Debt in Full
  • Iraq Issues Sovereign Bonds in Debt Restructuring
  • EMTA Proposes Multilateral Facility to Settle Venezuela Warrant Claims

2005 

  • Annual EM Trading Volumes Reach U.S.$5.485 Trillion
  • Peruvian Finance Minister Zavala Addresses EMTA’s Annual Meeting
  • Brazil Issues Real-Denominated Eurobond
  • DTCC Shuts Down EMCC
  • US Congress Ratifies Free Trade Agreement (CAFTA) with Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua
  • Brazil Issues US$4.4 Billion in New A-Bonds in Exchange for Outstanding C-Bonds
  • China Revalues Yuan, Replaces Dollar Peg with Peg to Basket of Foreign Currencies
  • Argentina Completes Debt Exchange Offer with 76% Participation
  • S&P Joins Moody's and Fitch in Rating Russia Investment Grade

2004 

  • EMTA-Sponsored Industry Benefits Raise Over $600,000 in New York and London for EM Charities
  • Venezuelan Finance Minister Nobrega Addresses EMTA’s Annual Meeting
  • Asian Currency NDF and Brazil NDF Architectures Revised
  • EMTA Sponsors Industry Steering Group to Develop an Offshore Alternative to the Emerging Markets Clearing Corporation (EMCC)
  • Germany Repackages Russian Paris Club Debt into Aries Credit-Linked Notes
  • Poland, Czech Republic, Hungary and Others Join the EU
  • EMTA Initiates Winter Forum in London

2003 

  • Annual EM Trading Volumes Total Nearly U.S.$4 Trillion for 2003
  • Argentina’s Secretary of Finance Guillermo Nielsen Addresses EMTA Annual Meeting
  • EMTA-Sponsored Industry Benefits Raise Over $320,000 in NYC and London for EM Charities
  • Confidence in Brazil/Low Interest Rate Environment Drive Year’s Market Strength
  • Brazil, US Clash in FTAA Talks in Cancun; More Conciliatory in Miami
  • Russia Gets Investment Grade Rating from Moody’s
  • Argentina Gets 3-Year IMF Program; Dart Entity Obtains $725 Million Judgment; Initial Argentina Restructuring Terms Rejected by Creditors
  • EMTA Architecture for ARS NDF’s Sets Standard for Lat Am NDF Market
  • Mexico First Sovereign to Retire All of its Brady Bonds
  • EMTA Develops EM Sovereign Bond Documentation Charts
  • Mexico, Brazil and Others Issue NY Bonds with Collective Action Clauses (CAC’s); SDRM Shelved by Official Sector
  • Marketable Bond Package (including CAC’s) Recommended by EMTA, Other Trade Associations
  • 1st Non-Deliverable Forwards (NDF’s) and EM Credit Derivatives Volume Surveys Published by EMTA

2002 

  • Russia Upgraded to BB by S&P and to Ba2 by Moody's
  • EU Announces Accession Date of May 2004 for Ten New Member Countries Including Poland, Czech Republic and Hungary; 2007 Target Date for Romania and Bulgaria
  • Argentina Defaults on World Bank Debt
  • Continuing Political Turmoil in Venezuela Shuts Down Oil Exports, Causes Economic Deterioration
  • US and Chile Reach Free Trade Agreement
  • US Treasury Under Secretary Taylor Addresses EMTA’s Annual Meeting
  • Brazil Election and Economic Concerns Hang Over Markets.  Lula da Silva Elected Brazil's President
  • Official and Private Sectors Debate Relative Merits of SDRM, Voluntary Collective Action Clauses
  • Global Environment Encourages Greater Risk Aversion
  • Mexico Redeems its Series B,C and D USD Discount Bonds
  • Mexico is Upgraded to Investment Grade by S&P
  • EMCC Consolidates with DTCC
  • Argentina Devalues Peso
  • EMTA Moves to 360 Madison Avenue from 63 Wall Street

2001  

  • Annual EM Trading Volumes Rebound to U.S.$3.5 Trillion
  • Large Bond Exchanges, Austerity Proposals, Return of Domingo Cavallo and Other Measures Fail to Stem Financial Crisis in Argentina. President De La Rua Resigns and Argentina Defaults on its External Debt
  • Mexico’s Finance Minister Gil-Diaz Addresses EMTA’s Annual Meeting
  • IMF Proposes Sovereign Debt Restructuring Mechanism (SDRM)
  • Mexico Redeems its Series A USD Discount Bonds
  • Paris Club Launches Website
  • EMTA Calls for More Constructive Dialogue with Official Sector to Catalyze Private Capital Flows into the Emerging Markets
  • EMTA Calls for Greater Investor Rights, More Transparency at Paris Club
  • Market Practice Separates Trading of Mexico Brady Bonds and VRR's

2000  

  • Arminio Fraga, President of the Central Bank of Brazil, and Daniel Marx, Secretary of Finance of Argentina, Address EMTA Annual Meeting
  • Brazil Closes U.S.$5 Billion Exchange Offer
  • Ecuador Reschedules 97% of its Brady Bonds
  • Russia Completes London Club Restructuring
  • Vicente Fox Elected President in Mexico's Most Open Election; PRI Turns Over Power After Seven Decades
  • Ecuador Adopts Dollarization
  • Mexico Upgraded to Investment Grade by Moody's
  • EMTA Upgrades its Website, Adding New Developments and Key Industry Views Areas
  • ECN's Introduce All-Electronic Trading of Brady Bonds and Eurobonds

1999  

  • Annual EM Trading Volumes Bottom Out at U.S.$2.2 Trillion
  • U.S. Treasury Official Timothy Geithner and IMF Deputy Head Stanley Fischer Address EMTA Annual Meeting
  • Emerging Markets Community Debates 'Burden-Sharing'
  • Ecuador Defaults on its Brady Bonds and Convenes a Consultative Group Chaired by EMTA
  • EMTA Helps Develop Cross-Product Netting Agreement with BMA and ISDA
  • EMCC Reaches Critical Mass
  • Brazil Effectively Devalues the Real/Market Confidence Restored Following Support Package

1998  

  • EM Trading Volumes Plummet in the Aftermath of the Russian Crisis
  • Former U.S. Treasury Secretary Nicholas Brady Addresses EMTA Annual Meeting
  • EMTA Develops Ruble/U.S.$ Exchange Rate in Collaboration with CME After Russian Ruble is Devalued and Russia Defaults on a Number of Debt Instruments
  • Emerging Markets Community Debates Dollarization
  • EMCC Launched in April
  • EMTA Helps Develop 1998 FX and Currency Option Definitions in Collaboration with ISDA and FX Committee
  • EMTA Introduces 'Batch Settlement' for Russian Loans

1997  

  • Annual EM Trading Volume Reaches Nearly U.S.$6 trillion for 1997
  • Russian Deputy Finance Minister Kasyanov Addresses EMTA Annual Meeting
  • EMTA Netting Facility Helps to Close Russia VEB Debt Restructuring
  • New EMTA Market Practices for Repos, Warrant Trades and Russian Loans
  • South Korean Recovery Package Announced
  • Asian Economic Crisis Begins
  • Netting Facility Also Addresses Argentina Interest 'Tails'

1996  

  • EM Debt Trading Volumes Exceed U.S.$5.2 Trillion for 1996
  • EMTA Releases Feasibility Study for Emerging Markets Clearing Corporation (EMCC)
  • EMTA Helps Launch the Loan Syndications and Trading Association (LSTA)
  • Deputy Secretary of the Treasury Lawrence Summers Addresses EMTA Members 
  • EMTA Issues Forms for Trading Russian Loans W/R (When-Restructured)
  • Standard Terms for Loan Participations Developed
  • EMTA Issues Clarification Statements on Polish Securities Markets

1995  

  • Mexican Rescue Package Stabilizes Markets
  • Bond Markets Begin Settling on T+3 Basis
  • EMTA Launches Match-EM Trade Comparison and Matching System
  • EMTA Recommends Standard Terms for Assignments of Loan Assets
  • Mexican Finance Minister Ortiz and Brazilian Finance Minister Malan Address EMTA Annual Meeting
  • EMTA Moves to 63 Wall Street
  • Revised EMBI and EMBI+ Indices Are Introduced

1994  

  • Emerging Markets React Negatively to General Interest Rate Increases
  • EMTA Develops Facility for Multilaterally Netting Loan Trades
  • Master Options Agreement Issued
  • Brazil Introduces the Real Plan, Ending its Hyper-Inflation
  • Brady Plan Rescheduling Completed for Brazil
  • NAFTA Takes Effect
  • EMTA Introduces Month-End Pricing Report
  • Mexico Devalues Peso in December ("Tequila Crisis")

1993 

  • EMTA Volume Survey Shows 1993 Trading Volumes of Nearly U.S.$2 Trillion
  • EMTA Adopts Code of Conduct for Trading EM Instruments
  • When-Issued Trading Forms Recommended for Brazil Brady Bonds
  • Market Practices Developed for EM Options
  • EMTA Lobbies for Passage of NAFTA 
  • Brady Plan Rescheduling Completed for Argentina
  • Federal Reserve Board and Manhattan DA Investigate EM Debt Trading Market

1992  

  • First EMTA Annual Volume Survey Shows 1992 EM Trading Volumes of U.S.$734 Billion
  • Argentina Finance Minister Cavallo Addresses EMTA Annual Meeting
  • EMBI Index Introduced by J.P. Morgan 
  • EMTA Adopts Market Practices for Argentina Brady Bonds
  • LDC Debt Traders Change Name to EMTA

1991  

  • LDC Debt Trading Volumes Estimated at about U.S.$200 Billion (IFR)
  • First EMTA Annual Meeting, with FRBNY President Gerald Corrigan as Keynote Speaker
  • Argentina Adopts Convertibility Plan, Linking Peso to the U.S. $ and Ending Hyper-Inflation
  • First Market Practices Issued by LDC Debt Traders

1990  

  • Total LDC Debt Trading Estimated at U.S.$75-100 Billion (JPM)
  • EMTA Formed (as the LDC Debt Traders Assn) in December 1990
  • Salomon Brothers Launches its Brady Bond Index
  • Confirmation Forms Developed for Mexico and Venezuela Brady Bonds
  • Brady Plan Restructurings Completed for Mexico and Venezuela