In a bid to increase listings and grow the uptake of capital markets products, the Capital Markets Authority of Kenya (CMA Kenya) has partnered with Financial Sector Deepening Africa (FSD Africa) and security regulators in Africa and Middle East.
The collaboration was announced during the 42nd Meeting of the Africa Middle East Regional Committee (AMERC) of the International Organisation of Securities Commissions (IOSCO). Members agreed that promoting additional listings was key to tackling market liquidity challenges faced in multiple markets as well as reinforcing the central role of securities markets to support sustainable economic growth through increased market-based financing.
Crypto Assets and Blockchain Technology Highlighted
The need to work towards greater convergence on standards for sustainable finance to address quality and consistency of disclosure, costs of issuance, and attractiveness to investors was discussed due to growing demand for responsible or sustainable investments globally.
The meeting also mapped key risks that could impede the growth of securities in the region. These included:
- Regulatory responses to trading in Crypto Assets.
- Cyber Security and resilience.
- Unfavourable macro-economic environment.
- Systemic issues around securities market trading and settlement infrastructure.
In the financial innovations space, Initial Coin Offerings and Crypto Assets remain a growing concern for the region and globally, especially in light of the targeting and flow of investments across borders"Paul Muthaura, MBS – C.E. Capital Markets Authority & AMERC Chair. pic.twitter.com/ZV3kK6Da1E
— Capital Markets Authority_Kenya (@CMAKenya) January 23, 2019
In an effort to grow the market, some opportunities were identified that would help promote fintech innovations. These included:
- Harnessing distributed ledger technology.
- Leveraging artificial intelligence/machine learning.
- Introduction of new products such as derivatives.
- Deepening financial literacy and education.
Paul Muthaura, CEO, CMA Kenya, acts as the char of the committee. The committee consists of 29 member states which includes Kenya, Egypt, Angola, Ghana, Nigeria, Uganda, Rwanda, South Africa, Tanzania, Seychelles, Dubai, Bahrain, and Qatar among others.
IOSCO is the leading international policy forum for securities regulators and is recognized as the global standard setter for securities regulation. The organization’s membership regulates more than 95% of the world’s securities markets in more than 115 jurisdictions and it continues to expand.