The Future of Domestic Capital Markets in Developing Countries (World Bank IMF Brookings Emerging Market)

Now in its fifth year, the "Emerging Markets Series" from the World Bank, International Monetary Fund, and Brookings Institution offers financial policymakers and practitioners a unique resource. Drawn from the proceedings of the 2003 Financial Markets and Development conference, this volume brings together financial sector experts and leaders from around the world to explore such questions as: what are the key factors threatening the development and survival of stock exchange in developing countries? What domestic strategies are needed to protect the future of local markets? Should exchanges consider linkages or alliances? Should exchanges merge with, or buy up, other exchanges? What about demutualization? This volume provides practical guidance on strategies such as nurturing issuers, improving rules and institutions, addressing regulatory challenges and sequencing reforms. The contributors address a variety of country experiences and suggest steps that policymakers and practitioners in emerging markets can take to promote an orderly transition toward efficient, well-regulated, and accessible capital markets. The Future Of Domestic Capital Markets In Developing Countries Addresses The Challenges That Countries Face As They Develop And Strengthen Capital Markets. Based On Input From The World's Most Prominent Capital Market Experts And Leading Policymakers In Developing Countries, This Volume Represents The Latest Thinking In Capital Market Development. It Captures The Views Of A Global Gathering Of Experts, With Perspectives From Developing And Developed Countries, From All Regions Of The World, From The Public And Private Sector. This Volume Should Be Of Interest To Senior Financial Sector Policymakers From Developed And Developing Countries In Securities And Exchange Commissions, Regulators, Central Banks, Ministries Of Finance, And Monetary Authorities; Private Sector Executives In Stock Exchanges, Bond Markets, Venture Capital Markets, And Investment Funds; And Researchers And Academicians With An Interest In Capital Market Development In Emerging Markets.--book Jacket. Introduction / Robert E. Litan, Michael Pomerleano, And V. Sundararajan -- Part One, Capital Market Development Around The World. Trends In Developing-country Capital Markets Around The World / Gerd Häusler, Donald J. Mathieson, And Jorge Roldos. The Development Of Domestic Markets For Government Bonds / Clemente Del Valle And Piero Ugolini. Bond Market Development : What Are The Policy Issues? / Philip Turner. Panel Summary : Country Experiences With Capital Market Development -- Part Two, Integrated Supervision. Market Discipline And Financial Stability / Glenn Hoggarth, Patricia Jackson, And Erlend Nier. Supervision At The Micro Level: Do Disclosure-based Regimes Work? / Alan Cameron. Domestic Capital Market Reform And Access To Global Finance : Making Markets Work / Peter Blair Henry And Peter Lombard Lorentzen. Capital Market Development And Nurturing The Ipo Market / Reena Aggarwal. Managing Risks In Financial Market Development : The Role Of Sequencing / Cem Karacadag, V. Sundararajan, And Jennifer Elliot. Panel Summary : Does Integrated Supervision Work In Emerging Markets? -- Part Three, Securities Trading. Changing Market Structures, Demutualization, And The Future Of Securities Trading / Ruben Lee. Corporate Governance Issues And Returns In Emerging Markets / Amar Gill. Capital Structures And Control Rights : Patterns, Trade-offs, And Policy Implications / Olivier Frémont And Mierta Capaul. Identifying Vulnerabilities, Promoting Financial Stability, And Other Challenges / Patrick K. Conroy And Arne B. Petersen. Panel Summary : Approaches To Securities Trading -- Part Four, Private Equity. Capital Structure, Rates Of Return, Sand Financing Corporate Growth : Comparing Developed And Emerging Markets, 1994-2000. Corporate Financing Patterns And Performance In Emerging Markets / Dilip Ratha, Philip Suttle, And Sanket Mohapatra. Panel Summary : The Role Of Private Equity In The Development Of Capital Markets. Robert E. Litan, Michael Pomerleano, V. Sundararajan, Editors. This Book Is Based On The Fifth Annual Financial Markets And Development Conference...held April 14-16, 2003 In Washington, D.c. Includes Bibliographical References And Index.

The Future of Domestic Capital Markets in Developing Countries addresses the challenges that countries face as they develop and strengthen capital markets. Based on input from the world's most prominent capital market experts and leading policymakers in developing countries, this volume represents the latest thinking in capital market development. It captures the views of a global gathering of experts, with perspectives from developing and developed countries, from all regions of the world, from the public and private sector.

This volume should be of interest to senior financial sector policymakers from developed and developing countries in securities and exchange commissions, regulators, central banks, ministries of finance, and monetary authorities; private sector executives in stock exchanges, bond markets, venture capital markets, and investment funds; and researchers and academicians with an interest in capital market development in emerging markets. What are the key factors threatening the development and survival of stock exchanges in developing countries? What domestic strategies are needed to protect the future of local markets? Should exchanges consider linkages or alliances? Merging with, or buying up, other exchanges? Demutualization? The volume provides practical guidance on strategies such as nurturing issuers, improving rules and institutions, addressing regulatory challenges, and sequencing reforms. The contributors address a variety of country experiences, and suggest steps that policymakers and practitioners in emerging markets can take to promote an orderly transition toward efficient, well-regulated, and accessible capital markets.

Contributors include Reena Aggarwal (Georgetown University), Alexander S. Berg (World Bank), Alan Cameron (Sydney Futures Exchange), Olivier Fremond (PSACG), Amar Gill (Credit Lyonnais Securities Asia), Gerd Hausler (IMF), Jack Glen (International Finance Corporation), Peter Blair Henry (Stanford University Graduate School of Business), Patricia Jackson (Bank of England), Ruben Lee (Oxford Finance Group), Robert Litan (Brookings Institution), Clemente Luis del Valle (Securities and Exchange Commission of Colombia), Sanket Mohapatra (Columbia University), Alberto Musalem (World Bank), Dilip Kumar Ratha (World Bank), Ajit Singh (University of Cambridge), Philip Suttle (DECPG), V. Sundararajan (IMF), Thierry Tressel (IMF), Philip Turner (Bank for International Settlements), and Piero Ugolini (IMF).

Cover......Page 1 Title......Page 4 Contents......Page 6 Foreword......Page 10 1. Introduction......Page 12 PART I. Capital Market Development around the World......Page 30 2. Trends in Developing-Country Capital Markets around the World......Page 32 3. The Development of Domestic Markets for Government Bonds......Page 56 4. Bond Market Development: What Are the Policy Issues?......Page 88 Panel Summary: Country Experiences with Capital Market Development......Page 124 PART II. Integrated Supervision......Page 134 5. Market Discipline and Financial Stability......Page 136 6. Supervision at the Micro Level: Do Disclosure-Based Regimes Work?......Page 164 7. Domestic Capital Market Reform and Access to Global Finance: Making Markets Work......Page 190 8. Capital Market Development and Nurturing the IPO Market......Page 226 9. Managing Risks in Financial Market Development: The Role of Sequencing......Page 244 Panel Summary: Does Integrated Supervision Work in Emerging Markets?......Page 284 PART III. Securities Trading......Page 292 10. Changing Market Structures, Demutualization, and the Future of Securities Trading......Page 294 11. Corporate Governance Issues and Returns in Emerging Markets......Page 316 12. Capital Structures and Control Rights: Patterns, Trade-offs, and Policy Implications......Page 328 13. Identifying Vulnerabilities, Promoting Financial Stability, and Other Challenges......Page 358 Panel Summary: Approaches to Securities Trading......Page 376 PART IV. Private Equity......Page 382 14. Capital Structure, Rates of Return, and Financial Corporate Growth: Comparing Developed and Emerging Markets, 1994-2000......Page 384 15. Corporate Financing Patterns and Performance in Emerging Markets......Page 428 Panel Summary: The Role of Private Equity in the Development of Capital Markets......Page 468 PART V. Looking Forward......Page 480 16. Institutional Savings and Financial Markets: The Role of Contractual Savings Institutions......Page 482 Panel Summary: The Future of Domestic Capital Markets in Developing Countries......Page 514 Contributors......Page 526 Index......Page 528 The Future of Domestic Capital Markets in Developing Countries addresses the challenges that countries face as they develop and strengthen capital markets. Based on input from the world's most prominent capital market experts and leading policymakers in developing countries, this volume represents the latest thinking in capital market development. It captures the views of a global gathering of experts, with perspectives from developing and developed countries, from all regions of the world, from the public and private sector. This volume should be of interest to senior financial sector policymakers from developed and developing countries in securities and exchange commissions, regulators, central banks, ministries of finance, and monetary authorities; private sector executives in stock exchanges, bond markets, venture capital markets, and investment funds; and researchers and academicians with an interest in capital market development in emerging markets. What are the key factors threatening the development and survival of stock exchanges in developing countries? What domestic strategies are needed to protect the future of local markets? Should exchanges consider linkages or alliances? Merging with, or buying up, other exchanges? Demutualization? The volume provides practical guidance on strategies such as nurturing issuers, improving rules and institutions, addressing regulatory challenges, and sequencing reforms. The contributors address a variety of country experiences, and suggest steps that policymakers and practitioners in emerging markets can take to promote an orderly transition toward efficient, well-regulated, and accessible capital markets. Contributors include Reena Aggarwal (Georgetown University), Alexander S. Berg (World Bank), Alan Cameron (Sydney Futures Exchange), Olivier Fremond (PSACG), Amar Gill (Credit Lyonnais Securities Asia), Gerd Hausler (IMF), Jack Glen (International Finance Corporation), Peter Blair Henry (Stanf