NO 248 – OCTOBER 2013

WFE Focus
A New Start!
Peter Clifford
Chief Operating Officer,

The WFE members recently came together in Mexico City to unanimously approve a fresh start to the 53 year-old organization. More than simply changing our address, WFE Ltd. is now poised to fulfill its promise as a champion for market integrity and transparency from its headquarters in London. With the strong backing of the Board of Directors, no one should doubt the future success of the organization.

Thanks to the excellent hospitality provided by our hosts, the Mexican Stock Exchange nearly 400 delegates heard from exchange CEOs and market experts on current issues for the stock and derivative markets.

This year’s “WFE Award for Excellence” was presented to Professor Robert C. Merton, MIT Sloan School of Management, and Professor Myron Scholes, Stanford Graduate School of Business and the late Fischer Black, former Director of the Quantitative Strategies Group at Goldman Sachs, in recognition of their development of the groundbreaking Black-Scholes Model in 1973.

Professor Merton accepted the award in person at a ceremony during the Annual Meeting and emphasized that a distinction between a real economy and the financial world is a false dichotomy. Excellent markets create great economies, they are intertwined. He also noted the impact of timing on financial innovation and progress, as his work on options pricing met needs to cope with new financial risks, and the development of options in trading in the US with the opening of the CBOE.

The WFE General Assembly also approved the membership of Dubai Financial Markets, Hochiminh Stock Exchange, Kazakhstan Stock Exchange, New Zealand Stock Exchange, and Qatar Exchange. Together with these new members, WFE membership includes 62 regulated exchanges.

WFE Ltd. will hold its first workshop at MIT on 3 -6 December. Among the topics to be discussed are cyber security, risk management in a low latency world, and rules for systems compliance and integrity. We look forward to strong interaction with regulators throughout the meeting, building on our joint report with IOSCO earlier this year on the first subject.

As the WFE Ltd. looks forward to new challenges, I close in thanking all our staff and our members who have paved the way for a smooth transition.