As the balance of the global economy tilts toward emerging markets, securities regulators in those markets are calling for a bigger role in global regulatory reform.
The committee of emerging market regulators within the International Organization of Securities Commissions (IOSCO) met in Panama City this week, concluding that they “need to play a more active role in global regulatory reform efforts and being involved at early stages of new international regulatory reforms to ensure emerging market considerations are reflected in the reform efforts.”
IOSCO’s newly named Growth and Emerging Markets (GEM) Committee said that it aims to “provide greater focus towards balancing growth and implementation of regulation, including looking at greater inclusiveness, strengthening channels of communication and developing greater regulatory capacity for emerging markets.”
At the conference, the committee hosted panels on the impact of global regulatory reforms on emerging markets, among other topics. It reports that panelists emphasized the need for better streamlining of conduct and prudential regulation.
Another panel examining the impact of developments such as high frequency trading and algorithmic trading on emerging markets, “acknowledged that HFT and algorithms are the new normal, and it is critical to have a sound regulatory framework to ensure markets continue to operate in a fair, orderly and transparent manner.”
At the meeting, Ranjit Ajit Singh, chairman of the Securities Commission Malaysia, was elected chairman of the committee. And, Bert Chanetsa, deputy executive officer capital markets of South Africa’s Financial Services Board, was elected as the vice chair.
Singh emphasized that there is a major opportunity for emerging markets to contribute to global discussions and for the committee to be a highly visible, effective and inclusive grouping for emerging markets. “In doing so, emerging markets must have a stronger and more inclusive voice and be supported by an efficient structure and process. The contribution to global regulatory debate must be enhanced,” he said. “Market development and capacity building efforts remain critical for many emerging markets and we look forward to the establishment of the IOSCO Foundation.”