IOSCO Committee Debates Systemic Resilience in the Current Capital Market Environment

Global emerging capital market regulators discussed "strengthening systemic resilience while remaining alert to market risks" and "ensuring fair and orderly markets." At a meeting in Bali, Indonesia, the IOSCO Growth and Emerging Markets Committee explored three areas:

Risks in emerging capital markets

The regulators discussed current global financial risks and the implications of declining economic growth and divergent monetary policies. Concerns included: (i) "uncertainties" in the U.S. Fed's interest rate path, (ii) the slowdown of the Chinese economy, (iii) the decline in commodity prices, and (iv) enhanced market volatility. Regulators also examined the risks created by "tight liquidity conditions."

Regulatory Policy Procedures

Members discussed the impact of financial technology on regulation, supervision, market surveillance, as well as the implications on market risks, incentives and behavior. Regulators also considered their current roles in strengthening corporate governance and conduct in markets, noting the importance of high standards in ensuring robust capital markets and building international investor confidence.

Strengthening Cyber Resilience in Emerging Markets

The Committee held a regulatory exercise featuring a cyber-attack simulation, focusing specifically on the role of securities regulators when dealing with cyberattacks on regulated entities.