• EFSA presents the developments occurred in the market after the Exchange Rate Liberalization
• Financial services technology at the forefront of the challenges of Capital Markets’ Authorities around the world
• Sherif Samy calls for paying more attention to green bonds and environmental investment funds
Sherif Samy – EFSA’s Chairman returned to Cairo after his participation in the IOSCO’s Board Meetings which was held Milan, Italy. The meetings dealt with the current conditions of the capital markets.
The IOSCO’s BOD discussed the global economic developments and their impact on capital markets. Also, the meetings discussed how far does exchanging of regulatory information between the Authorities has succeeded. EFSA’s Chairman presented the significant progress in the financial technology, which is also known as FinTech and its impact on the markets. Also, he introduced its mechanisms and regulatory rules that enhance dealers’ protection and reduce its risks through setting the needed rules for securing its information. EFSA’s Chairman pointed out that these developed financial technologies included the use of artificial intelligence in issuing investment recommendations (robo-advice) and managing financial settlement registries by using cloud computing (Blockchain), as well as using logarithmic programs and technologies in the issuance of buying and selling orders (high frequency trading).
Sherif Samy revealed that during the meeting, he presented the impact of the Exchange Rate Liberalization in Egypt and how it affected the Stock Exchange’s activity and increased purchases of foreign institutions. Also, he introduced the new rules set by EFSA to regulate the market, like the First Egyptian Financial valuation Standards in addition to the Comparative Study which was prepared by EFSA in cooperation with the Union of Arab Securities Authorities “UASA” on regulating tender offers and acquisitions.
During the meeting, EFSA’s Chairman stressed that the IOSCO must issue global standards on financing instruments for projects related to the environment or what is known as green bonds and green investment funds. He explained that this type of bonds associated with environmentally friendly projects reduce carbon emissions, energy efficiency and renewable energy generation from wind, solar and others. He pointed out that these are financing instruments that respect environmental standards and aim at using clean energies, mitigating factors that contribute to global warming, supporting adaptation to climate change and reducing its effects .
On the sidelines of the meetings, the IOSCO Growth and Emerging Markets Committee discussed number of priorities concerning those markets, especially activating bond markets and strengthening its corporate governance rules. Sherif Samy noted that he met those in charge of the capital market in the UAE, Saudi Arabia and the Dubai International Financial Centre (DIFC).
It is worth mentioning that the IOSCO was founded in 1974. The headquarter of the General Secretariat is in Madrid – Spain. The IOSCO is globally the most important Body in laying the rules and regulations in the financial markets and setting standards that every state is seeking to comply with in order to ensure the fairness, transparency and efficiency of the markets. It includes in its membership about 95% of the financial markets in the world.
Egypt had first elected to the membership of the IOSCO’s BOD 2014 – 2016 and re-elected in May for a new cycle.