The World Federation of Exchanges (WFE) on Wednesday hosted a roundtable in London for exchanges and the buyside, to discuss how best to grow liquidity in emerging markets.
The session, held with Oliver Wyman, and titled Enhancing Emerging Market Liquidity – follows the joint WFE-Oliver Wyman paper on the issue published in October 2016. It also follows the subsequent roundtable held at the WFE’s Annual Meeting in Colombia with the World Bank and regional regulators, in November 2016.
According to WFE, participants at Wednesday’s event included leading international buy-sidefirms, along with representatives from exchanges in both emerging and developed markets including: Bermuda Stock Exchange, BM&FBOVESPA, CBOE, Korea Exchange, Moscow Exchange, National Stock Exchange of India, Nasdaq, and The Stock Exchange of Mauritius.
The report identified three key areas that exchanges and regulators can focus on to grow liquidity:
1. Promoting the development of a diverse investor base;
2. Increasing the pool of securities and associated financial products; and
3. Investing in the creation of an enabling market environment.
Chief Executive Officer, WFE, Nandini Sukumar, said: “Institutional investors are crucial in the creation of market liquidity. They create information flows and contribute to market efficiency, positively influencing liquidity. This, as our report shows, is particularly important in emerging markets.”
