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WFE Interview Jose Antonio Martinez, Bolsa de Comercio de Santiago

The Chilean stock market is one of the strongest markets in Latin America. There are three Stock Exchanges, being Santiago Stock Exchange, the most important in terms of traded volume, number of brokers and products and infrastructure development. This is confirmed by our market share of 88% in equity, 93.6% in fixed income and 99.8% in other financial instruments, giving us a total participation of 96.9% in all markets. The total market capitalization at the end of 2013 exceeded US$266,000 million. 

Santiago Stock Exchange has built a great stock market since it began 120 years ago, with our vision firmly fixed on the future to support dynamic growth.  This has required the development of a wide range of financial instruments and services for local and foreign investors

Eurex Clearing White Paper "How CCP's Strengthen the Safety and Integrity of Financial Markets"

Eurex Clearing recently published its White Paper on the functioning of CCPs and their contribution to reduce systemic risk, given the ongoing discussions on the role of Financial Market Infrastructure as the new regulatory regime takes hold. The main purpose of the paper was to analyse how CCPs serve their markets and the positive impact they have on user’s risk management. Of particular interest was the question surrounding CCP market structure resilience for extreme market scenarios, and how CCPs, their members, and regulatory stakeholders will ensure that even in circumstances which overwhelm the existing levels of collateralization, a CCP enables either the recovery or resolution in an orderly manner.

WFE Interviews Nicky Newton-King, Johannesburg Stock Exchange

The JSE was formed in 1887 during the first South African gold rush. Following the first legislation covering financial markets in 1947, the JSE joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s. The bourse demutualised in 2005 and listed on its own exchange in 2006.

Today the exchange is a diversified, full service exchange offering investors a range of markets namely equities, debt and derivatives (currency, equity, commodity and interest rate). We provide primary and secondary markets as well as post-trade services. We also sell market data and regulate primary and secondary markets. The JSE is one of the Top 20 exchanges in the world by market capitalisation, which currently stands at around US$1.12 trillion. There are currently 384 companies listed on the JSE. Though still home to a range of resource companies, these make up only 24% of our Equity Market in market capitalisation (JSE market capitalisation) terms, with Consumer goods, Financials and consumer services sectors (industries) making up 26%, 18% and 9% of market cap respectively (Stats as at 14 May 2014).

B20 Recommendations Focus on Economic Growth and Jobs

In November 2014 Australia’s Prime Minister Tony Abbott will host the G20 leaders in Brisbane.  The G20 continues to be the premier forum for international economic cooperation, with members from 19 countries plus the European Union. G20 leaders, finance ministers and central bank governors meet regularly to discuss ways to strengthen the global economy. 

Australia has firmly focused the agenda for the G20 on jobs and growth.  G20 Finance Ministers and Central Bank Governors agreed in February to target a lift in GDP over the coming five years of 2% above the current trajectory.  This would add more than $2 trillion to the global economy and tens of millions of jobs.

The B20 (Business 20) is made up of senior business leaders from across the countries that make up the G20.  The B20 provides recommendations to the G20 world leaders that can improve global economic growth and create jobs.

WFE interviews Ibrahim Turhan, Chairman & CEO, Borsa Istanbul

Borsa İstanbul is the fully integrated operator of capital markets in Turkey and provides a fair, transparent and efficient environment for the trading of a wide variety of securities including equities, ETFs, warrants, government and corporate bonds, repo and reverse-repo agreements, derivatives, selected commodities and Sukuk. We are also the only provider of post-trade services, namely, central clearing, settlement, custody, and registration in Turkey.

With the enactment of new Capital Market Law (CML) in December 2012, Borsa İstanbul became a joint stock company and separate exchanges of Turkey at which trading of various asset classes take place merged under the umbrella of Borsa İstanbul. New markets were established and investments in technological infrastructure of Borsa Istanbul have also been on the top of our agenda. 

For the Global Exchange Community, a New Major Development in Cyber Security

In this article I will report on the origins and activities of the working group. I will also give my perspective, as Founding Chair, on some major information security issues I see facing the world’s exchange community, and how GLEX can help. Along the way, I will share some tips and insights from my colleagues in the working group on how to address these and other issues in defense of the world’s exchanges.

WFE Interviews Edemir Pinto, CEO, BM&FBOVESPA

BM&FBOVESPA, with its vertically integrated model, is a complete exchange in terms of products and infrastructure, as a result of a merger on May 2008 between BOVESPA (the São Paulo Stock Exchange, founded in 1890) and BM&F (the Commodity & Futures Exchange, founded in 1986). It offers a diversified array of products and services ranging from trading in equities and derivatives to all stages of post-trade activities including clearing, settlement and depositary services, always at the beneficial owner level.

Running to Stay in Place: Listed Derivatives Still Beset by Challenges

The news in early April that all former customers of MF Global would soon be returned all the money they were owed turns the page on one of the industry’s worst traumas. It was a welcome piece of news to an industry still beset by challenges. Listed derivatives volume was up last year, but only modestly following one of the worst volume declines in decades in 2012.  Some challenges this year include problems with trade data repositories and a nascent SEF industry. But the biggest challenge looming is an environment in which both capital and collateral are scarce. These twin scarcities will keep the pressure on the industry and likely drive further consolidation. On the brighter side, getting much more efficient in using capital and collateral should spur innovation in clearing and collateral management as exchanges, service providers, and clearing firms seek better ways to cope.

WFE Interviews Tim Bennett, CEO, NZX Limited

NZX is the operator and regulator of securities and derivatives markets and provider of trading, post-trade and data services for securities and derivatives, as well as the provider of a central securities depository. NZX is the only registered securities exchange in New Zealand, and is also an authorised futures exchange. Its wholly owned subsidiary, New Zealand Clearing and Depository Corporation, is the operator of a designated settlement system under Part 5 of the Reserve Bank of New Zealand Act 1989. 

Making our Markets Sustainable: Stock Exchanges Face the Challenge

As Environmental, Social, and Corporate Governance (ESG) issues become more prevalent in the capital markets, investors, stakeholders, and regulators are using new data—and greater insight—to drive their decisions. Some stock exchanges play a double role in this trend, simultaneously pushing better ESG practices into their markets and protecting them from immaterial or burdensome regulation. Can an exchange support listed companies and sustainability reporting channels? 

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