London, 25 January 2017 – The World Federation of Exchanges ("WFE"), which represents more than 200 market infrastructure providers including exchanges and CCPs, today hosted a roundtable in London for exchanges and the buy side, to discuss how best to grow liquidity in emerging markets.
The session, held with Oliver Wyman, and titled Enhancing Emerging Market Liquidity - follows the joint WFE-Oliver Wyman paper on the issue published in October 2016. It also follows the subsequent roundtable held at the WFE's Annual Meeting in Colombia with the World Bank and regional regulators, in November 2016.
Participants at today's event included leading international buy-side firms, along with representatives from exchanges in both emerging and developed markets including: Bermuda Stock Exchange, BM&FBOVESPA, CBOE, Japan Exchange Group, Moscow Exchange, National Stock Exchange of India, Nasdaq, and The Stock Exchange of Mauritius.
The report identified three key areas that exchanges and regulators can focus on to grow liquidity:
- Promoting the development of a diverse investor base;
- Increasing the pool of securities and associated financial products; and
- Investing in the creation of an enabling market environment.
Nandini Sukumar, CEO, WFE, said: "Institutional investors are crucial in the creation of market liquidity. They create information flows and contribute to market efficiency, positively influencing liquidity. This, as our report shows, is particularly important in emerging markets."
Daniela Peterhoff, Partner, Global Head of Market Infrastructure, Oliver Wyman, said: "Buy-side participants can act as a catalyst for growth of the overall capital markets ecosystem. Bringing them closer to emerging markets by offering dedicated solutions is crucial to enhance liquidity."
The report was written in collaboration with Oliver Wyman, using its experience in a variety of markets; additional WFE data; and interviews and case studies of several WFE emerging market exchanges.