The key question that has been posed to this panel is whether the global standards in commodity derivatives markets are fit for purpose. To address this question there are three sub-questions that I believe would be relevant in this regard.
The first one is why commodity markets are in focus for securities markets regulators in the first place? A second sub-question to this would be what trends are developing and impacting market infrastructure? And finally, what risks are being considered and addressed by market authorities of developed and emerging markets around the globe. I will share with you some of my observations around these three sub-questions.
Islamic finance industry has registered a tremendous growth during the last decade in both Islamic and non-Islamic countries. While the asset size of Islamic finance reached USD 1.2 trillion in 2010 over 80 countries, the banking industry takes the largest share of 80 %. The recent financial crisis in 2008-2009 revealed more the importance of Islamic finance as the conventional banking system encountered serious problems. This gave pace the widespread use and acceptance of asset based/backed Islamic financial instruments in non-Islamic countries like UK, France, USA, either through Islamic financial institutions or Islamic windows of the conventional banks. While London and Luxemburg have made good progress with their flexible treatment for Islamic finance business, Malaysia continues to keep playing the leader position in the world on this business with its well-established organizational structure, diverse asset types and high sukuk issuance size. Moreover, the regulatory authorities in the non-Islamic countries provide a level playing field for Islamic financial institutions with their rivals, namely conventional banks, bringing tax neutrality for the same type of products, i.e. sukuk vs. corporate bonds.
Modern Islamic financial markets began their journey with the establishment of interest-free banking practices. But while Islamic banking served its purpose, markets began looking for alternative solutions for fund raising and insurance through Islamic finance a decade later. Today, Islamic financial markets have flourished throughout the Middle East, Europe and Asia, with assets of approximately US$1 trillion[i] and the industry is expected to grow at an annual rate of 25 percent.[ii]
This chapter considers the stock markets that have emerged during the transition from centrally planned to market economies. The transition occurred over the last 20 years and covered a wide geographical area spreading from Central and Eastern Europe (CEE) through Central Asia to China and Vietnam. A complete description of the different paths of transition in each individual country would be too voluminous for this forum. Instead, this chapter concentrates on the common features and most important differences in the development of stock markets in the more than 30 countries that underwent transition.
The following analysis identifies the most important factors that contributed to the success or failure of individual stock markets that were re-established from a fresh start in the early 1990s.
Capital markets facilitate fund raising opportunities for businesses which aspire to invest for sustainable growth in a highly competitive environment. Public offerings play a pivotal role in ensuring that businesses gain international competitive advantage as well as global recognition.
It is clear that there is increasing appetite for Africa as an investment destination. Both investment flows into the continent’s markets and the number of funds focused on the region are increasing as low yields in developed countries prompt investors to search for high returns in previously unexplored emerging markets. This is good news for the continent.
Egypt's stock exchange delists firms in a move to put quality over quantity.
The Egyptian Stock Exchange (EGX) delisted 14 companies at the start of the year. According to a statement on the EGX’s website, the firms’ shares were transferred to the Over the Counter (OTC) Board (Orders Market) for two weeks starting January 3. This move gave individual investors time to leave the companies before they were transferred to the OTC Market (Deals) two weeks later.
The capital markets in India have evolved over more than a century. The seeds of investor protection were sown way back in 1956 at the time of enactment of the Securities Contracts Regulations Act, 1956, wherein several investor protection measures found their place. Since then, investor protection has been evolving. Over the period, investor protection has been receiving increased attention and focus from the market regulator, the Securities Exchange Board of India (SEBI), as well as stock exchanges.
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.
Exchange Focus: China Financial Futures Exchange , Dalian Commodity Exchange, and Zhengzhou Commodity Exchange
This month in Focus, we look into Chinese capital markets, ahead of the IOSCO Annual Meeting in Beijing.
A survey of academic literature provides further insights as to the effects of greater transparency
(12 October 2011, Johannesburg) Leaders from more than 60 of the world’s foremost exchanges gathered in Johannesburg, South Africa, this week for the 51st General Assembly and Annual Meeting of the World Federation of Exchanges (WFE), the association of regulated stock, futures, and options exchanges. WFE develops and promotes high regulatory standards in markets to assure their transparency, fairness, and certainty of execution.
amongst the panels: Challenges for National and Regional Exchanges, Derivatives and Commodity Markets, Corporate Governance, New Products, Institutional Investments, SME markets, ESG issues, Post-Trade Services, New Challenges in trading Systems
IFC, a member of the World Bank Group, and the Tokyo Stock Exchange Group Inc. (TSE Group) have signed a Memorandum of Understanding to cooperate in developing capital markets in emerging economies, helping protect investors through better corporate governance, ensure fair markets, and spur economic growth.