Securities regulators in emerging markets are stressing the need for policy frameworks that foster deeper, more resilient capital markets in these countries.

Following its annual meeting and conference in Cairo this week, the International Organization of Securities Commissions’ (IOSCO) Growth and Emerging Markets (GEM) Committee issued a statement Wednesday stressing their commitment to maintaining market resilience, and also focusing on their efforts to accelerate the sustainable growth and development of emerging capital markets.

At the conference, the GEM committee discussed the priorities for emerging market regulators, and its own plans, following a membership review. “This will involve the development of deeper markets and enhancement of regulatory capacity to reinforce market resilience,” it notes.

“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,” said Ranjit Ajit Singh, chair of the GEM committee.

At the meeting, the committee held a workshop, in collaboration with the Toronto Centre — an organization that trains financial sector regulators, particularly in emerging markets and the developing world — on strengthening regulatory capacity in terms of crisis preparedness and contingency planning, including reviewing relevant crisis management tools.

The GEM committee also approved, in principle, a policy report on small business financing through capital markets, which highlights some of the challenges facing small and medium sized businesses (SMEs) in obtaining market-based financing; and, provides recommendations for regulators in facilitating capital raising by SMEs in emerging markets. “Emerging capital markets have a major role to play in bridging the financing gap for SMEs,” the committee notes.