William Brodsky, Chairman and CEO of the CBOE and Chairman of the WFE, shares his views on OTC derivatives in the Financial Times’ "Trading Room"
The Ibero-American Federation of Exchanges (FIAB) is pleased to co-organize with the World Federation of Exchanges a Developing Markets Forum. This event will follow the XXXVI General Assembly of the FIAB; the Lima Stock Exchange will host these meetings.
As the UN-backed Principles for Responsible Investment (PRI) continues to see tremendous growth in signatories and business commitment, there is increasing interest expressed by investors in the role of regulators and quasi-regulators in encouraging higher standards of corporate conduct and transparency. To explore how exchanges can contribute, the PRI Initiative, along with the UN Global Compact and UNCTAD, are convening a meeting on Sustainable Stock Exchanges at UN Headquarters in New York on 2 November.
Many exchanges are adopting proactive commercial strategies in response to growing investor interest in environmental, social and governance (ESG) issues and global sustainable development challenges such as climate change, according to a new report published this month by the WFE.
We are at a point in the crisis where the financial markets, and economic commentators, do not know whether to panic about deflation or inflation, about a sudden collapse in the dollar, or a sudden collapse in the euro.
IOSCO Secretary General, Greg Tanzer addresses WFE Focus newsletter readers.
The contribution of stock exchanges to improving standards of corporate governance in recent decades has been manifest. Through participation in developing national codes of corporate governance, by setting listing and maintenance requirements consistent with high standards of governance and through monitoring and disclosure of listed companies’ corporate governance arrangements, exchanges have been at the forefront of a process of raising standards.
For years thousands of companies around the world have been operating outside analyst radar. As of January 31, 2009 there were over 46,000 companies listed on WFE member exchanges worldwide. Add to that the thousands of companies that trade on non-member exchanges and regulated OTC markets, and you have an extremely large population of publicly traded companies all vying for analyst attention.
Derivatives provide a tool for investors to implement strategies for managing counterparty, market and liquidity risk. Order matching, i.e. the transfer of investors’ trading intentions into actual trades, price discovery and centralized clearing are at the heart of the production function of derivative markets. They thereby play a key role in market-based economies.
The recent financial crisis has shown that clear lines must be drawn between protecting investors and allowing market participants to freely express their opinions of securities prices. Short sales directly benefit stock markets by supporting price discovery and enhancing liquidity, and indirectly by facilitating operations for the alternative funds industry. At the same time, outsized short selling during volatile times can unfairly damage stock prices and create systemic economic risks. This note aims to help define the line between investor protection and unfettered short selling, which to date has proven to be a substantial challenge for regulators and markets alike.