Global emerging market securities regulators met in Panama City from 21-23 May 2013 and reinforced the need to play a more active role in global regulatory reform efforts and being involved at early stages of new international regulatory reforms to ensure emerging market considerations are reflected in the reform efforts.
In defining the future role of the Emerging Markets Committee (EMC) of the International Organization of Securities Commissions, the group also agreed to rename the committee as the Growth and Emerging Markets (GEM) Committee to better reflect the nature of the markets in which its members operate. The 86 members include some of world’s fastest growing economies and 10 of the G-20 members.
The GEM Committee will seek to provide greater focus towards balancing growth and implementation of regulation, including looking at greater inclusiveness, strengthening channels of communication and developing greater regulatory capacity for emerging markets.
The membership further reinforced strong support for the establishment of the IOSCO Foundation, which will assist members in their market development and capacity building efforts. Members urged industry to support the Foundation expeditiously so that emerging markets can benefit from the overall activities relating to three pillars: research, education and training, and technical assistance. Increased funding of these activities will be of significant benefit to emerging market members, especially at a time of growing demand for market-based financing.
The EMC also held its elections for the new chair of the EMC. Ranjit Ajit Singh, Chairman of the Securities Commission Malaysia, was elected chairman of the EMC. Bert Chanetsa, deputy executive officer capital markets, Financial Services Board, South Africa, was elected as the vice chair of the EMC.
The incoming chair, Ranjit Ajit Singh, emphasised that there is a major opportunity for emerging markets to contribute to global discussions and for the committee to be a highly visible, effective and inclusive grouping for emerging markets. He added: “In doing so, emerging markets must have a stronger and more inclusive voice and be supported by an efficient structure and process. The contribution to global regulatory debate must be enhanced. Market development and capacity building efforts remain critical for many emerging markets and we look forward to the establishment of the IOSCO Foundation.”
The chair of the Board of IOSCO, Greg Medcraft, who was present at the meetings said: “Emerging financial markets have a very significant role to play in global economic growth, and the leadership of the EMC is critical to ensure IOSCO is seen as effective, pro-active and forward looking. We look forward to the support from the industry to be able to launch the IOSCO Foundation soon. I look forward to working together with the new chair and vice chair of the EMC towards achieving these objectives.”
David Wright, secretary general of IOSCO said: “This EMC meeting organised by the Superintendencia del Mercado de Valores, Panama, has been a very successful one demonstrating again the critical, growing importance of this Committee for IOSCO’s work. EMC members represent 75% of IOSCO’s membership. I would like to congratulate Ranjit Ajit Singh and Bert Chanetsa for becoming the new chair and vice chair of the EMC. Their experience, dynamism and vision will take the committee forward serving all members very well. Let me place on record IOSCO’s great thanks to Vedat Akgiray for his leadership of the EMC over the last three years”.
The EMC also held a public conference and discussed, among other panels, the Impact of global regulatory reforms on emerging securities markets. Panelists emphasised the need for better streamlining of conduct and prudential regulation, and to ensure a strong and cohesive way to communicate these views at a higher level.
The panel on Impact of High Frequency Trading and Algorithmic Trading on Emerging Markets acknowledged that HFT and algorithms are the new normal, and it is critical to have a sound regulatory framework to ensure markets continue to operate in a fair, orderly and transparent manner.
As part of its regulatory capacity building efforts, the EMC held regulatory workshops on risk-based supervision and financial market infrastructures and risk management.
No comments:
Post a Comment