Latin American Capital Markets

528 FOCUS ON CAPITALfinancial stability (continued)capital market contribution, 239ethical issues, 415-16institutional investors, 129-30in local capital markets, 16-17,60mutual and pension funds, 129-30financial statementsFASB vs. IASB, 223-24functions of, 214influence on prices, 215quality of, 216-17,228,229,230Financial Supervisory Authority (Swedish), 285,286Financial Supervisory Authority (UK), 471financial system, components of, 3financing of enterprises. See debt markets; smalland medium enterprises (SMEs)Finnish derivatives exchange, 286fiscal policybond markets, 300Latin American crises, 95-97, 100, 113need for conservative, 146privatization of industries, 7fiscal stabilization funds and small economies, 105fitness and propriety of market operators, 363FIX (Financial Information Exchange), 249-50fixed commission structures, 141fixed-income marketsbond markets, 315-16crowding out of private sector offerings,97Latin American, 109, 123, 126,257,260market development role, 503-4mortgage-backed securities, 131, 324-25inOECD, 121private sector 323, 324-26See also bond marketsfixed-rate investments, 307, 312floatation option for SMEs, 407-8,409floating rate securities, 311floor tradingdemutualization of exchanges, 248,269,281,289vs. electronic systems, 202obsolescence of, 41,48Foerster, Stephen R., 497foreign market investmenteffect on local markets, 43, 107, 128, 135,497,509listings in foreign exchanges, 106, 178-79mutual recognition approach to, 55,170-77SEC regulatory proposals, 55-56See also international investment in localmarketsfor-profit organizations, exchanges as, 46,52. Seealso demutualization of exchangesForum of European Securities Commissions(FESCO), 169forwards vs. futures, 343, 347fractional reserve requirements, 99-100fragmented markets, 23,496France, investment environment, 121,401fraud issues, 74, 83-86, 101-2, 103, 167free riding in derivatives markets, 359freedom of establishment in European markets,170-71, 173freedom of movement in European markets,170-71, 173Fretes-Cibils, Vicente, 100Froot, Kenneth A., 497fundamental analysis and accounting standards,214-16funding, government. See bond marketsfunding for demutualization of exchanges,266-67,271-72,284fungibility of derivatives, 340, 341, 350futures and options markets. See derivativesmarketsFutures Commission Merchants, 193Futures Exchange of Rio de Janeiro (Brazil), 383Futures Industry Association, 335GAAP (Generally Accepted AccountingPrinciples), 136,217, 220-25,231-33Garcia,Valeriano F, 93, 100GDP (gross domestic product), 7,9, 165GDRs (Global Depository Receipts), 14-15,44GEM (Global Equity Market), 109,256general good issue for European Union, 173,174-75Generally Accepted Accounting Principles(GAAP), 136,217,220-25, 231 -33Germany, investment environment, 121,401Glass-Steagall Act, 142Glen, Jack, 497,507,508Global Corporate Governance Forum, 459Global Depository Receipts (GDRs), 14-15,44Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub