Jordan Times
Thursday, May 20, 2004
King chairs opening ceremony
of IOSCO's 29th annual conference
By Rami Abdelrahman
AMMAN — More than 500 world capital and securities regulators gathered here this
week, for the first time in the Arab world, to revise and strengthen rules and
functions, pertaining to their mission and profession.
His Majesty King Abdullah, who recently led a successful World Economic Forum,
chaired on Wednesday the opening ceremony of the 29th annual conference of the
International Organisation of Security Commissions (IOSCO) which attracted the
leading international stock markets, capital institutes, and financial
organisations to the Kingdom that houses the world's first treasury in Petra.
Jordan Securities Commission (JSC) President Bassam Saket reviewed the Jordanian
financial reforms that were achieved and which qualified the Kingdom to host
this international meeting.
Highlighting the importance of this conference at a time witnessing “tremendous”
challenges to securities regulators around the globe, Saket underlined the need
for “going beyond localised jurisdictions' short-term goals.”
The challenges come from “tremors” in major markets, which have spillover
effects on all markets, he indicated.
IOSCO Chairman Fernando Dos Santos stressed that promoting safe, transparent,
fair and efficient securities markets are the main tasks of regulators, but also
emphasised that in the face of worldwide market developments fostered by
competition, technological advance, innovation and major political events,
regulators should always update their means of achieving their role in such a
changing environment.
“It is clear that in a world of globalising securities markets involving a high
level of cross-border economic activity and investment, all jurisdictions must
develop and adopt an effective regulatory regime for the sector to help
regulators achieve their role,” Dos Santos said. He added the meetings held here
would contribute to finding “evermore efficient and sound systems, and
regulatory solutions.” Beyond addressing current and emerging issues, IOSCO's
core mission is the development of the uniform international standards and, more
significantly, their implementation.
“Over the course of its history, IOSCO has focused primarily on the development
of international standards for the regulation of securities markets,” remarked
Phillipe Richard, IOSCO's secretary general.
Based in Madrid, Spain, IOSCO has 107 ordinary members, 63 associate members,
and 10 associate members regulating more than 90 per cent of the world's capital
market.
The opening ceremony was followed by four public panel discussions chaired by
experts from leading international securities.
The panels tackled a wide range of topics including regulating investment
schemes, international convergence of accounting and auditing standards, and the
new developments in market formations for securities.
In addition to public panels, participants have the opportunity to visit more
than 17 exhibitors giving briefings on their firms and cultural gifts.
Foreign exhibitors include: AtosEuronext, SIA, Securities and Futures Commission
of Hong Kong, Securities and Exchange Commission of Sri Lanka (which will host
the conference next year), Shanghai Stock Exchange, Bahrain Monetary Agency and
the Saudi Stock Market.
Local exhibitors include, the Executive Privatisation Commission, Aqaba Special
Economic Zone, Amman Stock Exchange, Securities Depository Centre, Arab Bank,
Housing Bank for Trade and Finance, Jordan Islamic Bank, ABC investments,
Fastlink and Imcan Financial Services.
The JSC enforced a new securities law in 2002, which enhanced its surveillance
and enforcement capabilities, defined its roles, responsibilities and licensing
requirements of capital market participants.
The commission has continued to enhance the organisational and operational
framework, introducing an IT infrastructure allowing remote e-trading,
e-clearing, settlement, depository and registry, e-data dissemination, a wide
area network linking all capital market shareholders.
Saket told the opening ceremony that foreign ownership in the Kingdom is 40 per
cent of market capitalisation which he described as one of the highest in the
world.
“Market capitalisation in Jordan has grown from $5.8 billion in 1999 to $11.5
billion today, thus representing 116 per cent of gross domestic product),” Saket
indicated noting that this is a “simple but vital testimony of trust.”
According to the JSC president, market capitalisation increased by 54 per cent
in 2003 alone, thus creating in one year an additional $4 billion of wealth for
people. So far in 2004, he added, a growth of five per cent was achieved.