By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Global emerging capital market regulators said on Wednesday it’s seeking to improve its capital markets now estimated to worth $146 trillion.
This is coming on the heels of a three (3) day annual general meeting (AGM) held in Cairo Egypt this week where the International Organisation of Securities Commissions (IOSCO’s) Growth and Emerging Markets (GEM) Committee held a roundtable dialogue with leading global industry players and international organisations.
A statement from IOSCO affirmed that issues bordering on current risks and vulnerabilities in global capital markets, and how capital market regulators should address these challenges were discussed. “Reinforcing the theme of resilience, the Committee in collaboration with the Toronto Centre also hosted a workshop to strengthen collective regulatory capacity in crisis preparedness and contingency planning, including reviewing relevant crisis management tools,” IOSCO said.
IOSCO disclosed that the GEM Committee also approved in principle the policy report on SME Financing through Capital Markets.
It said emerging capital markets have a major role to play in bridging the financing gap for SMEs. According to the global securities regulator, the report describes some of the successful measures implemented in capital markets around the world that supported SME financing requirements, and highlights key challenges faced by SMEs in accessing market based financing.
Also, it provides recommendations for regulators to assist capital raising for SMEs in emerging markets.
In the same vein, the GEM Committee also discussed the priority areas of emerging market regulators and the committee’s future work program following a review conducted across the membership. “This will involve the development of deeper markets and enhancement of regulatory capacity to reinforce market resilience,” the global securities regulator noted.
It said other important subjects discussed were corporate governance, crisis management for capital market regulators, cross-border capital market integration initiatives, and digital disruption and cyber-crime.
“Volatility is a given in today’s challenging environment, and it is critical for emerging markets to continue to focus on building resilient capital markets to withstand global market stresses. At the same time, emerging markets should reaffirm their commitment to facilitating the development of strong regulatory frameworks to foster sustainable and long-term growth,” Ranjit Ajit Singh, the chair of the GEM Committee said.
This Committee is the largest of IOSCO’s committees with 94 members, and represents some of the world’s fastest growing economies, including 10 of the G-20 members.
