SCA participates in IOSCO-sponsored EMC meeting in Turkey

The Emirates Securities and Commodities Authority (SCA) is participating in the IOSCO-sponsored Emerging Market Committee (EMC) meeting and conference being held by the Capital Market Board of Turkey from October 13 to 15.

H.E. Abdullah Al-Turifi, SCA Chief Executive Officer, is heading the SCA delegation at the meeting being attended by heads of securities market regulators of member states of the International Organization of Securities Commissions (IOSCO).

The conference will discuss a number of issues on its agenda including the global financial structure in the aftermath of the financial crisis and the role of regulators. Different panels will examine various issues, including the new global financial architecture along with the new measures taken on the financial crisis – as to whether securities regulators in Emerging Markets are properly equipped to manage systemic risk, corporate bond markets in the emerging markets - with regard to setting the scene for their development, implementation of International Financial Reporting Standards (IFRS) in emerging markets - in view of recent discussions and experiences, and Algorithmic and High-Frequency trading, and the challenges it poses to markets and regulators.

Commenting on the conference, Al-Turifi said the EMC has set up a number of working groups which will discuss many reports on IOSCO Strategic Direction, including report on securitization, in collaboration with the International Monetary Fund, report on development of corporate bond markets in emerging economies, in collaboration with the World Bank, report on disclosure and accounting, report on the regulation of secondary markets, report on the regulation of market intermediaries, report on enforcement and the exchange of information, report on investment management, report from the Secretariat General on IOSCO assistance program and on IOSCO educational programs, including the risk-based supervision seminars with the IMF, report on the implementation of the IOSCO MOU and report on review of the principles and methodology.

He added that the meeting will hold discussions on specialized courts dedicated to economic and securities related issues and on the progress of the Monitoring Board of the IFRS foundation in reviewing the governance of IASB.

Signing of MoU:

Meanwhile, the SCA has signed on the fringe of the meeting a memorandum of understanding (MoU) with the Capital Markets Board of Turkey (CMB). The MoU aims at boosting cooperation and sharing information between the two sides on issues related to the securities industry.

H.E. Abdullah Al-Turifi, SCA Chief Executive Officer, signed the MoU for his side, while Prof. Dr. A. Vedat Akgiray, CMB Board Chairman, also signed for his outfit in a ceremony attended by H.E. Saif Al-Shamsi, UAE Consul General in Istanbul, officials from the two sides and a number of officials of regulatory authorities attending the conference.

Building a sound regulatory framework

In order to build a framework for sound regulatory work in the securities industry, the CMB, upon the SCA's request, shall provide training and technical assistance to the latter, or vice versa.

Commenting on the development soon after the signing of the agreement, Al-Turifi said by signing this kind of agreement with its counterparts from various parts of the world, the SCA seeks to achieve a number of objectives related to its strategic and operation plans, including cooperation in the areas of training, sharing of experience and information related to supervision of securities markets and their listed companies and brokers, sharing of technical information and securities market related legislations and cooperation in the area of supervision of institutions operating on the financial markets and other players on the markets.

He pointed out that the agreement aims at providing better protection for investors and ensuring more efficient securities markets by putting in place a sound framework which will promote joint cooperation and sharing of information within the limit allowed by the rules and regulations of the two sides. "This is to be done in a way that would lead increased inflow of investment between the two countries through the promotion of joint listing of securities on the markets of the two countries," he said.

Sharing of technical assistance and information

He pointed out that the agreement will, among other things, promote exchange of technical assistance in many areas, including the areas of investment management regulations, information that must be disclosed to investors by public joint stock companies (PJSCs), listing of issues, regulating securities markets and future contracts.

The MoU also calls for enforcement of laws, rules and regulations related to transactions in securities, futures, options and group investment and providing of advice on them, supervision and monitoring of securities markets, clearance and settlement operations.

The two sides also agreed, by virtue of the MoU, to ensure that issuers of securities for subscription, board members and executives of listed companies or those intending to list on markets affiliated to the two sides, adhere strictly to all rules and regulations through accurate and complete disclosure of any information of interest to investors and within the stipulated time.

The MoU also underscores the need to strictly enforce the laws, rules and regulations concerning issuance and transactions, trading on securities markets, securities related administrative and consultancy works, other investment products and acquisition and merger operations.