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As the world's equity markets jitter over the fallout of JP MorganChase & Co.'s two-billion-U.S.-dollar trading loss and fretabout a likely Greek default, global securities regulators aretrying to find a solution to minimize the impact. More than 500 representatives from securities regulatory agenciesfrom 203 countries and regions convened in Beijing on Wednesday todiscuss a new financial architecture for the post-crisis era. The annual public conference of the International Organization ofSecurities Commissions (IOSCO), which sets international standardsfor regulating securities markets, comes at a time when reneweduncertainty about Europe and JP Morgan have spooked investorsworldwide "It's too early to say something definite about the problem of JPMorgan or any other institution that may be at large losses," saidMasamichi Kono, chairman of the IOSCO Technical Committee, whileanswering a question at a press conference on the sidelines of themeeting. "These cases have occurred several times in the last few years. itwill continue [to happen]," Kono said, trying to downplay theseverity of the incident. "But the objective of global financial regulators, including theIOSCO, is to make sure that such unfortunate incidents do notthreaten global financial stability, as well as ensure that thefinancial system is resilient enough to absorb losses withoutcausing major destruction to the global economy and [hampering]economic growth," he said. Kono said the IOSCO will provide policy recommendations and developstandards for systemically important non-banking institutions,along with assistance given to banks by the Basel Committee. The IOSCO conference's attendees are focusing on establishing a newfinancial architecture for the post-crisis era, financial marketinfrastructure and market integrity, capital market development inemerging markets and the regulation of commodity futures andfinancial derivatives. In private meetings held before the public conference, the IOSCOvowed to continue leading the development of regulatory standardsfor capital markets, identify emerging securities markets risks andprepare to respond to requests for work by the G20 and theFinancial Stability Board. "This annual conference is taking place in Beijing at a pivotalmoment. We are seeing an important change -- a move toward anincrease in financing for the world economy by securities markets,"said David Wright, IOSCO secretary-general. As the global economic crisis continues, securities markets areexpected to step in and fill in the funding gap left bycash-strapped governments and financial institutions that can nolonger finance economic growth. Pressure is growing for regulators to ensure that robust andtransparent markets are prepared to meet the rising demand forcapital. On Wednesday, securities regulators from Malaysia, Peru, Egypt andMauritius, all IOSCO members, signed the Multinational Memorandumof Understanding (MMoU), an instrument established in May 2002 andsubsequently used by securities regulators to help ensure effectiveglobal regulation and strengthen securities markets around theglobe. The new membership brought the total number of MMoU signatories to86 countries, covering more than 94 percent of the world'ssecurities markets. In a press release, the IOSCO hailed the MMoU as the "preemptivestandard" for international enforcement cooperation and informationsharing, as it provides securities regulators with the tools forcombating cross-border fraud and misconduct that can weaken globalmarkets and undermine investor confidence. "The MMoU has created a groundswell change in what securitiesregulators are able to do," said Mark Steward, executive directorof enforcement at the Hong Kong Securities and Futures Commission. "Cross-border cases that could not have been investigated 10 yearsago can now be investigated and brought before relevant courts andtribunals," Steward said. "This would not have been conceivablebefore the MMoU." Steward's sentiment was echoed by Ethiopis Tafara, director of theOffice of International Affairs of the U.S. Securities and ExchangeCommission. "The ability to turn to an increasing number of information-sharingpartners through the MMoU has been critical to the success of manyof our investigations and proceedings," said Tafara. "Now with morethan 80 signatories, the MMoU's breadth spans the globe many timesover, telling fraudsters there is nowhere to hide." The MMoU provides a mechanism through which securities regulatorsshare essential investigative material, such as beneficialownership information and transaction records, including bank andbrokerage records. It sets specific requirements for the exchange of information,ensuring that no domestic banking secrecy, blocking laws orregulations prevent the provision of enforcement information amongsecurities regulators. "The MMoU has made a real difference in the world of internationalenforcement, raising the standards of enforcement action,encouraging cooperation among international regulators and makingit more difficult to conduct market misconduct in an increasinglycross-border environment," said Georgina Philippou, co-chair of theMMoU Screening Group. The increase in the number of signatories over the last decade hasled to a sharp upsurge in cross-border cooperation, enablingregulators to investigate a growing number of inside traders,fraudsters and other criminal offenders. In 2006, a total of 520 requests for assistance were made pursuantto the MMoU, with the figure exceeding 2,000 last year, accordingto the IOSCO. The IOSCO said it is committed to eradicating any potential safehavens for wrongdoers by ensuring that its members who have yet tobecome signatories to the MMoU will do so as quickly as possible. To further expand its network for cross-border cooperation, theIOSCO on Wednesday approved a resolution that allows it to taketougher measures to encourage compliance by IOSCO members who havenot yet signed the MMoU. The new resolution is designed to assist non-signatories inovercoming the obstacles they often encounter in securing supportfrom the government and legislative bodies for implementing thelegal and regulatory changes required for compliance with the MMoU. Under the resolution, IOSCO will publish on its website a list ofmembers who have not become MMoU signatories and consider furthermeasures to persuade non-signatory members to sign the MMoU, suchas limiting their ability to influence IOSCO decision-making,starting from Jan. 1, 2013. Before the MMoU existed, IOSCO members relied on bilateralagreements to obtain cross-border information and technicalassistance. Those accords were limited in scope and hampered bylegal impediments to the free flow of information betweenjurisdictions. The e-commerce company in China offers quality products such as Silicone Baking Moulds , Silicone Spatula Manufacturer, and more. For more , please visit Silicone Baking Moulds today!
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