Saturday Sep 21, 2024
Saturday Sep 21, 2024
Wednesday, 30 October 2013 00:00 - - {{hitsCtrl.values.hits}}
IOSCO develops, implements, and promotes adherence to internationally recognised standards for securities regulation, and is working intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.
The program was organised by the IOSCO’s Emerging Markets Committee (IOSCO- EMC) in collaboration with the World Bank, based on their joint report on the “Development of the Corporate Bond Markets in Emerging Markets”.
Constructive dialogue
Highlighting the need for further discussion on bond markets, the program was the manifestation of the 
initiative taken by both institutions in enforcing the findings of the report. IASCO’s international regulators met to identify and edify the challenges that face the growth of Sri Lanka’s corporate bond market, as well as the possible solutions via constructive dialogue. Also present were a plethora of stakeholders, including members of the Colombo Stock Exchange, stock broking firms and primary dealers.
The program hosted five foreign speakers, part of IOSCO’s resource personnel. They included IOSCO Advisor Alp Eroglu, International Financial Reporting Standards – Financial Supervisory Service Korea Representative DongSoo Han, World Bank Senior Securities Market Specialist Evans Osano, CONSOB (Italy) International Relations Office Senior Officer Irene Tagliamonte and Securities and Exchange Commission of Malaysia representative Jeslyn Chuah Ai Ping.
Bond market
The first day’s session was opened by Securities and Exchange Commission Member Sujeewa Rajapaksa, who discussed the key role of the bond market in an economy and Sri Lanka’s need to develop this market. He added that bond markets create financial stability and reduce systematic risk, while efficient allocation of resources reduces the risk of maturity and currency mismatch.
Rajapakse further stressed on the importance of increasing transparency, and easing the crisis created by international capital flow. Referring to the SEC’s 10 key projects, he added that was an ambitious policy framework initiated with the aim of developing the market by 2015. He summed up his address by asserting that global commitment and integration are of utmost importance in order to find sustainable solutions.
Benchmark yield curve
This was followed by a round table discussion that was initiated by a round table session, with Eroglu as moderator. The panellists included SEC Capital Market Development Director Vajira Wijegunawardane, Candor Equities CEO Ravi Abeysuriya, CSE Director Vajira Kulathilake, and Capital Alliance Securities MD/CEO Ajith Fernando.
Apart from the findings and recommendations of the IOSCO report, the program’s topics under discussion aim to include the development of a benchmark yield curve as a reference prerequisite, the interconnectivity of bond markets and financial stability, as well as development of the Italian Government’s bond market as a reference point.
The round table discussion also highlighted aspects of designing a market for institutional investors, the major challenges and obstacles faced by emerging markets, development of a primary market framework and addressing liquidity constrains in the secondary market.
The program was created to be a useful reference for regulatory initiatives for the future. Participants were further urged to view it as an experience to view issues from both a real market and regulatory perspective.
Pix by Lasantha Kumara
