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The role of exchanges in the new economic order

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The old economic order, the recent financial crisis showed, was not sustainable. Developed countries were living beyond their means, and risk management measures across the financial chain with limited exceptions were inadequate to prevent the situation from worsening and eventually resulting in a systemic collapse that affected all of us.

The global exchange industry must speak to regulators with a single voice

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believe that as an industry, we must act together to grasp this opportunity to reshape our economy towards a far more sustainable footing, based on the key characteristics of exchange trading: transparency, neutrality and liquidity. From my conversations with political leaders in London, Brussels and Washington I believe that there is recognition at the highest levels that this was not a crisis of equity or exchange trading.

International cooperation amongst market operators does exist

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Much has been said of the need for greater cross-market cooperation between regulators in light of recent events. Whilst this is not a new issue, it has been given greater focus since the financial crisis that led to a number of governments around the world providing financial support to key institutions. Furthermore with debate raging in both the US and Europe over the extent to which markets

Excerpts from Tom Kloet’s speech at the 2010 IOSCO Conference in Montreal

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Through the economic crisis, while credit markets failed, banks ceased lending and many financial institutions went hat in hand to governments for survival, organized, transparent stock and derivatives exchanges performed well. While the news wasn’t always good, buyers and sellers met in the market, trades were cleared and settled, and price discovery was orderly. May 6 changed that perception, and issuers and the public have lost some confidence in our markets.

Excerpts from Craig Donohue's statement to the joint CFTC-SEC Committee on June 22 , 2010

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Since May 6, 2010, CME Group has engaged in a detailed analysis regarding trading activity in its markets on that day. Our review indicates that our markets functioned properly. We have identified no trading activity that appeared to be erroneous or that caused the break in the cash equity markets during this period.

Flash Crash: Attack of the Clones!

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While many were relieved by the short duration of the flash crash on May 6 and the fact that it didn’t go nearly as far as the crashes of 1987 or 1929, in important respects, it was far worse than either of those. True, the Dow only dropped five and a half percent. But that drop took just five minutes, a speed of decline that exceeds anything in U.S. stock market history. Moreover, the decline in the averages sugarcoats the real carnage, which includes some stocks that went to zero for a few brief moments.

'Flash crash' shows need for price discovery and safeguards

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Around the world, financial markets are giving investors a bumpy ride. The sudden swoon of US stocks on May 6 - now referred to as the "flash crash" - was followed, 10 days later, by huge drops in Shanghai and Hong Kong. With continued nervousness about Europe's fiscal situation, civil unrest in Thailand, fears of conflict in Korea, and the unprecedented oil spill in the Gulf of Mexico, global markets have been hit with a string of bad news recently.

Integrating sustainability in South Africa

While the global financial crisis succeeded in drawing attention to sustainable practices in company behaviour and investor decision-making, responsible investing was a fast-growing phenomenon well before September 2008. In South Africa, a confluence of factors is driving companies and investors to focus on long-term goals rather than short-term gains. A primary motivator had been provided by the Johannesburg Stock Exchange (JSE)’s expansive activity in the area.

ESG Reporting in CEE: 2000-2009

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During the decade 2000-2009 the largest listed companies in Central and Eastern Europe (CEE) significantly improved their financial and extra-financial reporting, thereby increasing disclosure of information on environmental, social and governance (ESG) indicators. This article outlines the drivers that led to increased ESG disclosure in CEE, presents detailed data on the types of ESG data disclosed and analyzes the trends which developed over the decade.

The world’s exchanges and sustainable development

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Although exchanges are still grappling with the consequences of the demutualization process, with innovations in information and communication technologies, and with new demands regarding corporate governance, they adhered to social responsibility standards. Many world exchanges have endorsed sustainable development as foreseen in the Brundtland Report and all its political ramifications.

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