The report – entitled The Role of Stock Exchanges in Fostering Economic Growth and Sustainable Development – will form the opening sessions of the 57th WFE Annual Meeting taking place in Bangkok, Thailand on Thursday 7 & Friday 8 September 2017.
The report explains how stock exchanges operate, and why they matter; longer-term developmental challenges; and finally, how exchanges might be able to address some of those challenges.
The report identifies two primary mechanisms through which stock exchanges can contribute to development:
Mobilising resources, both domestic and foreign portfolio flows, for sustainable economic growth and development. In addition to the core financing function of exchanges, the report also looks at what exchanges are doing to improve SME access to finance through dedicated markets, and to marshal funds to address sustainability challenges.
Promoting good governance in business practices, through the promotion of greater disclosure from their listed companies, including Environmental, Social & Governance (ESG) disclosure.
The ability of exchanges to perform these roles is dependent, however, on the existence of an enabling environment, comprising relevant policy, processes and institutional structures. The report has therefore developed a framework for stock exchanges and stakeholders that can be used as a preliminary guideline.
Nandini Sukumar, CEO, The WFE said: “Exchanges exist to foster economic development and safeguard the financial system. Well-functioning exchanges enable economic growth and development, and can only do this within an environment that is regulated, secure, transparent and equitable. Part of the reason the WFE and UNCTAD did this report is to better understand the specifics of how exchanges contribute to growth. For us, it’s the beginning of a journey. We hope this joint report with UNCTAD serves as a baseline to work towards the creation of more enabling environments globally.”
James Zhan, Director, Investment and Enterprise, UNCTAD, and Editor in Chief, United Nations World Investment Report said: “Stock exchanges are an important part of the global investment chain and can be instrumental in helping mobilise the massive amounts of investment needed to achieve the United Nations Sustainable Development Goals. They can also serve as a unique platform for promoting responsible business and good corporate governance. Indeed, they have already made remarkable progress in this respect. We will continue to support stock exchanges worldwide, in close collaboration with The World Federation of Exchanges and their stakeholders, in their efforts to promote investment in economic growth and sustainable development.”
The 57th WFE Annual Meeting is an invitation-only two-day conference with around 250 exchange and CCP CEOs and Chairmen gathering from around the world, to meet senior industry leaders and stakeholders. In 2017 key note speakers will include: Arunma Oteh, Treasurer, The World Bank; Dr Chaiyawat Wibulswasdi, Chairman, SET; Dr James Zhan, Director, Investment & Enterprise, UNCTAD; Paul Andrews, Secretary General, IOSCO; Paul Hilgers, CEO, Optiver; and Dr David Marshall, Associate Director of Research, and Director of the Financial Markets Group, The Federal Reserve Bank of Chicago.