Securities markets activity in emerging economies : an overview of the main issues

Abstract

This chapter surveys the salient concepts relating to the role and development of emerging securities markets. It considers both general securities markets activity as well as the operations of exchanges which facilitate securities trading. The section relating to general securities activity discusses the liberalisation of securities markets in recent years, the risks related to portfolio investment in emerging markets and the impacts of the gradual integration of these markets with global ones.

Part of the business activity of securities exchanges is migrating overseas through the tendency for larger companies to cross-list on major exchanges. This chapter thus explores how emerging economy exchanges may assert their role in international financial markets through supplementing traditional business streams with new ones, enhancing liquidity and using appropriate technology. Finally, the chapter illustrates how securities activity in emerging economies should be supplemented by the appropriate legal and regulatory framework.