JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013THE SOUTH ASIAN FEDERATION OF EXCHANGES (SAFE)Ahmed AftabSecretary GeneralSAFE is a cooperative platform launchedby the bourses in South Asia with apurpose to promote the development andharmonization of the securities marketsin the region.INTRODUCTIONSouth Asian Federation of Exchanges (SAFE)is a cooperative platform launched by thebourses in South Asia with a purpose topromote the development and harmonizationof the securities markets in the region. SAFE isa not for profit association having RecognizedBody status of the South Asian Associationfor Regional Cooperation (SAARC), and is anetwork exchange association of the WorldFederation of Exchanges (WFE).SAFE stands to prepare and position itsmember markets for their orderly integrationinto the global financial system by enhancingthe depth, inter-connectivity, integrity andtransparency of its member markets. Sinceits inception, SAFE has worked to become afocused platform for the representatives of theexchange industry and other capital marketrelated institutions of the Region. Additionally,the Federation has also provided a channelthrough which the individual stock exchangescontinue to find opportunities for bilateralcooperation.SAFE was set up in year 2000 under theinitiative of Chittagong Stock Exchange,Bangladesh but now operates from itspermanent Secretariat at Islamabad, Pakistan.The activities and operations of the Federationare being spearheaded by Mr. Aftab Ahmad Ch,who has been serving as the regular SecretaryGeneral of the Federation since 2005 underthe appointment by the SAFE’s ExecutiveCommittee.As of February 2012, SAFE comprises of thirtyfour (34) member entities from the SAARCRegion (Afghanistan, Bangladesh, Bhutan,India, Maldives, Nepal, Pakistan and Sri Lanka)as well as from Kazakhstan, Mauritius andUAE; fifteen (15) regional stock & commodityexchanges as Primary Members; six (6)Associate Members comprising of non-regionalexchanges, and regional depository & clearinginstitutions, nine (9) Affiliate Members and four(4) Affiliate Associations.SERVICES OFFERED BY SAFE• The Federation acts as an industry platformto advocate, suggest and prepare regulatorychanges needed for the harmonization ofmarket practices and policies.• SAFE stands to promote the investmentpotential of the region by attracting foreigninstitutional and portfolio investments intoour regional markets. Towards this end, theFederation regularly conducts seminars,events, conferences and roundtables tohighlight the investment potential of ourindividual as well as the regional markets.• The Federation engages in the capacitybuilding programs to develop the skillsand expertise of the human capital for theeffective management of our markets.This is done through various activities andinitiatives both independently as well as inassociation with other domestic, regionaland international entities.• SAFE works for the adoption of the bestconsumer/investor protection standardsin the region and towards this end, theFederation undertakes regular efforts for thespread of financial knowledge/awareness inthe region.• SAFE also provides advisory & consultingservices regarding financial and capitalmarket issues, matters and projects bothwithin and outside the region. This is donethrough channelizing the involvement andparticipation of the regional consultants.SAFE’S PROJECT ON REGIONALFINANCIAL INTEGRATION: DEVELOPING AHARMONIZED REGULATORY FRAMEWORKFOR THE CAPITAL MARKETS IN PAKISTAN& SOUTH ASIA-2012/13Increased cross border financial activities,trade and economic exchanges are knownto create strong intraregional links and anintegrated economic region. While in SouthAsia, efforts have been made to promoteintraregional trade, however the intraregionalfinancial integration appears to lag behind dueto asymmetric developments in the economicand financial sectors. It was in this context thatSAFE had applied for USAID’s Small Grants andAmbassador’s Fund Program (SGAFP) in 2011,to develop standardized market regulationsso as to create the necessary environment foran enhanced regional financial integration andachieve convergence across different marketsof the Region.The objectives of the project are: to developharmonized market regulations for the capitalmarkets; to standardize self regulatoryframework for the management and theoperations of the markets in the region;to enhance market integrity and investorconfidence; to introduce consistent & commonreporting standards; to improve the governanceand transparency norms for the listed sector; tofacilitate easy capital raising on regional basisand the promotion of cross border listings; todeepen and broaden the region’s securitiesmarkets; to assist in, relatively, free movementof capital and portfolio investments; and topromote the greater integration of the SouthAsian capital and financial markets.The project is envisaged to be completed in aperiod of 18 months, beginning from April, 2012till Sep 2013.CONTACT INFORMATIONContact Name Ahmed Aftab E-mail aftab@safe-asia.com Website www.safe-asia.comPAGE 98