Securities markets, particularly bond markets, are increasingly in demand by emerging market countries to finance areas such as housing, infrastructure, and private sector development, which are rising with economic growth. For example, infrastructure investment needs are estimated at 7-9% of GDP for least developed countries with public spending for infrastructure averaging only 2-4%. Bond markets also provide long-term assets to rapidly growing institutional investors, such as pension funds and insurance companies. Furthermore, domestic bond markets help to diversify a country’s financial sector and expand risk management tools for borrowers and investors.
The joint IFC/World Bank Capital Markets Advisory Group (CMA Group) is a global leader in fostering capital market development in emerging market countries. While we support most areas in securities markets, our primary focus is on domestic bond markets, as we see them as more urgently needed in those countries. The group provides technical assistance to support development of all three levels of a securities marketplace:
- Government – We advise governments on creating an enabling policy, legal, and regulatory environment for development of securities markets and train government regulators on how to oversee the marketplaces.
- Market Infrastructure Providers – We help create and invest in key market infrastructure providers, such as credit rating agencies and trading, clearing, and settlement systems.
- Market Participants – We help bring new issuers to market through a variety of transactions, including securitization and partial bond guarantees. We also invest in and help build new skills and capabilities of securities intermediaries (dealers, traders, underwriters) and investors.
In addition, CMA Group is an active thought leader striving to advance knowledge in a variety of securities market areas via papers, books, toolkits, and workshops. We also participate in active dialogue with key international securities organizations, such as International Organization of Securities Commissions (IOSCO), to improve the standard setting process applied to developing countries.
Programs
Our work involves operations around the world, ranging from single country to regional and global projects. Below is a listing of some of our programs.
- Gemloc – Global Emerging Markets Local Currency Bond Program is designed to support development and increase investability of local currency bond markets so that more institutional investment from local and global investors can flow into these markets. Visit the Gemloc website.
- ESMID Africa – Efficient Securities Markets Institutional Development Initiative in Africa aims to foster the development of robust securities markets in African countries. It focuses on strengthening the enabling legal and regulatory environment, supporting the development of market infrastructure and participants, and helping to bring new and innovative transactions to market. ESMID Africa has begun operations in East Africa (Kenya, Uganda, Tanzania, and Rwanda) and plans to launch operations in Nigeria in 2008.
Some other countries where we have projects include: Brazil, Colombia, India, Russia, United Arab Emirates, and Vietnam.
