LAGOS – Global Emerging Capital Market (GEM) regulators have pledged to maintain market resilience to accelerate sustainable growth and development of emerging capital markets.
The International Organisation of Securities Commissions (IOSCO) and GEM is quoted as saying at their recent annual meeting in Cairo that they will focus more on accelerated market development and growth.
IOSCO statement made available to newsmen reported Mr. Ranjit Ajit Singh, GEM Committee Chairman, as saying it was imperative for emerging markets to build resilient capital markets that would withstand global market financial stresses.
“Volatility in today’s challenging environment is critical for emerging markets to continue to focus on building resilient capital markets to withstand global market stresses,” Singh said.
He said that emerging markets should continue to facilitate strong regulatory frameworks to foster sustainable and long-term growth.
It said that participants at the three-day annual meeting and conference discussed current risks and vulnerabilities in global capital markets and how capital market regulators should address the challenges.
According to the it, the GEM committee also approved, in principle, the policy report on SME financing through the capital markets.
It said that emerging capital markets had major role in bridging the financing gap for SMEs’.
The statement highlighted some of the successful measures implemented in capital markets around the world that supported SME financing requirements and key challenges faced by SMEs in accessing market based financing.
The GEM Committee also discussed the priority areas of emerging market regulators and the committee’s future programme, following a review conducted across the membership.
The discussions also involve the development of deeper markets and enhancement of regulatory capacity to reinforce market resilience.
Others are corporate governance, crisis management for capital market regulators, cross-border capital market integration initiatives and digital disruption and cyber-crime.
The GEM 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.
The statement also pegged the size of emerging capital markets currently to about 146 trillion dollars.
IOSCO is the leading international policy forum for securities regulators and is recognised as the global standard setter for securities regulation.
The organisation’s membership regulates more than 95 per cent of the world’s securities markets in more than 115 jurisdictions.
