ICMA discusses market turmoil

LONDON (Reuters) - The International Capital Market Association said on Thursday it was working to keep its members, regulators and central banks in dialogue over how best to deal with the current credit market crisis.

But ICMA, which represents asset managers and exchanges as well as big investment banks, also said it continued to oppose increased regulation, as tighter controls might drive investors to other centres and markets.

ICMA said it was working through various groups -- including its regulatory policy committee, Euro commercial paper committee, legal and documentation committee and European repo committee -- to assist member firms affected by the market turmoil.

"Our objective remains to ensure the continued smooth functioning of the markets within the context of a resilient and stable infrastructure while limiting unnecessary regulation which could restrict innovation and efficiency in the future," Executive President Rene Karsenti said in a statement.

"We have been discussing with our members the appropriate response to current events and how the resources of the association can be deployed in the best way to assist the market," he said.

On Tuesday, the European Central Bank called on corporate bond market participants to launch a trial of post-trade transparency, which it said could help with problems caused by the current market turmoil. It warned that regulation might be necessary if the market did not take action.

ICMA is a Zurich-based, self-regulatory body for the international securities market.