Bangkok, Thailand, 6 September 2017 – The World Federation of Exchanges ("The WFE"), which represents more than 200 market infrastructure providers including exchanges and CCPs, today published a report examining the role of stock exchanges in promoting economic growth and sustainable development, with the United Nations Conference on Trade and Development ("UNCTAD").
The report - entitled The Role of Stock Exchanges in Fostering Economic Growth and Sustainable Development - will form the opening sessions of the 57th WFE Annual Meeting taking place in Bangkok, Thailand on Thursday 7 & Friday 8 September 2017. The report explains how stock exchanges operate, and why they matter; longer-term developmental challenges; and finally, how exchanges might be able to address some of those challenges.
The report identifies two primary mechanisms through which stock exchanges can contribute to development:
- Mobilising resources, both domestic and foreign portfolio flows, for sustainable economic growth and development. In addition to the core financing function of exchanges, the report also looks at what exchanges are doing to improve SME access to finance through dedicated markets, and to marshal funds to address sustainability challenges.
- Promoting good governance in business practices, through the promotion of greater disclosure from their listed companies, including Environmental, Social & Governance (ESG) disclosure.
The ability of exchanges to perform these roles is dependent, however, on the existence of an enabling environment, comprising relevant policy, processes and institutional structures. The report has therefore developed a framework for stock exchanges and stakeholders that can be used as a preliminary guideline.
Nandini Sukumar, CEO, The WFE said: "Exchanges exist to foster economic development and safeguard the financial system. Well-functioning exchanges enable economic growth and development, and can only do this within an environment that is regulated, secure, transparent and equitable. Part of the reason the WFE and UNCTAD did this report is to better understand the specifics of how exchanges contribute to growth. For us, it's the beginning of a journey. We hope this joint report with UNCTAD serves as a baseline to work towards the creation of more enabling environments globally."
James Zhan, Director, Investment and Enterprise, UNCTAD, and Editor in Chief, United Nations World Investment Report said: "Stock exchanges are an important part of the global investment chain and can be instrumental in helping mobilise the massive amounts of investment needed to achieve the United Nations Sustainable Development Goals. They can also serve as a unique platform for promoting responsible business and good corporate governance. Indeed, they have already made remarkable progress in this respect. We will continue to support stock exchanges worldwide, in close collaboration with The World Federation of Exchanges and their stakeholders, in their efforts to promote investment in economic growth and sustainable development."
To read the full report, please click here.
The 57th WFE Annual Meeting is an invitation-only two-day conference with around 250 exchange and CCP CEOs and Chairmen gathering from around the world, to meet senior industry leaders and stakeholders. In 2017 key note speakers will include: Arunma Oteh, Treasurer, The World Bank; Dr Chaiyawat Wibulswasdi, Chairman, SET; Dr James Zhan, Director, Investment & Enterprise, UNCTAD; Paul Andrews, Secretary General, IOSCO; Paul Hilgers, CEO, Optiver; and Dr David Marshall, Associate Director of Research, and Director of the Financial Markets Group, The Federal Reserve Bank of Chicago.
The full agenda can be found here.
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About The World Federation of Exchanges (WFE):
Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 41% are in Asia-Pacific, 40% in EMEA and 19% in the Americas. WFE exchanges are home to nearly 45,000 listed companies, and the market capitalisation of these entities is over $67.9 trillion; around $84.18 trillion (EOB) in trading annually passes through the infrastructures WFE members safeguard (at end 2016).
The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges.
The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities' goals of ensuring the safety and soundness of the global financial system, which is critical to enhancing investor and consumer confidence, and promoting economic growth.
About the United Nations Conference on Trade and Development (UNCTAD):
The United Nations Conference on Trade and Development (UNCTAD) supports developing countries to access the benefits of a globalised economy more fairly and effectively. The Division on Investment and Enterprise of UNCTAD serves as the focal point for all matters related to foreign direct investment and multinational enterprises in the United Nations System. It builds on more than four decades of experience and international expertise in research and policy analysis on investment and enterprise development, fosters intergovernmental consensus-building, and provides technical assistance to over 150 countries.
For more information, please contact:
Head of Communications, World Federation of Exchanges
Phone: +44 7850 287 685