21 January 2016

IOSCO: Emerging market regulators reinforce commitment to strengthen resilience while ensuring fair and orderly markets

The IOSCO Growth and Emerging Markets Committee discussed its on-going work on digitalisation and the regulatory impact of financial technology on regulation, supervision, market surveillance, as well as the implications on market risks, incentives and behaviour.

The Growth and Emerging Markets (GEM) Committee hold its annual meeting in which members discussed current global financial risks including the implications of declining economic growth and divergent monetary policies including uncertainties in the US Fed’s interest rate path, slowdown of the Chinese economy, decline in commodity prices, enhanced market volatility and their effects on emerging markets. Discussions also focused on the factors underlying some tight liquidity conditions and pressures on emerging markets corporate debt exposure, particularly given rising US dollar and interest rates.

The GEM Committee underlined the importance for emerging markets to continue to demonstrate an ability to withstand heightened volatility surrounding the global economy. In this current sentiment-driven environment, it is critical that emerging market regulators continue to Members also discussed its current work on strengthening corporate governance and conduct in markets, noting the importance of high standards of corporate governance in ensuring robust capital markets and building international investor confidence. enhance structural resiliency and focus on building strong fundamentals and robust governance. Other important imperatives include policy and regulatory certainty, having in place sound market microstructure and strengthening domestic institutional capabilities. The GEM Committee is committed to continuing its regular engagements with market participants to effectively identify and address key risks.

Members also discussed its current work on strengthening corporate governance and conduct in markets, noting the importance of high standards of corporate governance in ensuring robust capital markets and building international investor confidence.

Full press release

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