The Nation Newspaper

Tag: MARKET

  • Virgin Atlantic in new market campaign

    Guests were treated to a red carpet reception, a cocktail before being led into Silver Bird Cinema, handed soft drinks and pop corn then the action began. It was a very dramatic way of introducing the new marketing campaign to the audience. After two takes of the classy advert as classy as all things Virgin seem to be, guests sat back and enjoyed a screening of Wolverine, the movie. The stars of the movie seem to have been cut out of the virgin advert.

    About special people:

    Virgin Atlantic Airways recently launched its new campaign in Nigeria. It is a new global brand promo it called Flying in the Face of Ordinary (FITFOO).

    Speaking on the new brand promo, Rachel Coffey, the Country Manager, Nigeria of the airline said: “Our staff hold the keys to the future of Virgin Atlantic, they work so hard and we are delighted to dedicate this new advert to them. I believe it takes a special kind of person to work at Virgin Atlantic and we’re always on the lookout for gifted young people to take our business forward”

    “Over the last few decades, flying has become a common feature of everyday life – whether for short breaks, holidays in exotic destination or business trips within Nigeria and around the world. As flying has increased, so too have expectations. Virgin Atlantic provides the alternative that consumers need, setting us aside from the rest of the industry.”

    Rachel added: “We wanted to capture the essence of Virgin Atlantic with this new campaign and bring the glamour and fun back into long-haul travel. “Flving in the Face of Ordinary” is more than a marketing campaign; it is a powerful brand proposition and long term platform that will be reflected in all areas of the business from communications and marketing to product and service.

    “The advertisement is based upon the lives of real people who work at the airline today and traces the lives of the gifted youngsters born with special skills, and how they later use those talents to become outstanding employees at the airline.

     

     

  • Virgin Atlantic in new market campaign

    Guests were

    treated to a red

    carpet reception, a cocktail before being led into Silver Bird Cinema, handed soft drinks and pop corn then the action began. It was a very dramatic way of introducing the new marketing campaign to the audience. After two takes of the classy advert as classy as all things Virgin seem to be, guests sat back and enjoyed a screening of Wolverine, the movie. The stars of the movie seem to have been cut out of the virgin advert.

    About special people:

    Virgin Atlantic Airways recently launched its new campaign in Nigeria. It is a new global brand promo it called Flying in the Face of Ordinary (FITFOO).

    Speaking on the new brand promo, Rachel Coffey, the Country Manager, Nigeria of the airline said: “Our staff hold the keys to the future of Virgin Atlantic, they work so hard and we are delighted to dedicate this new advert to them. I believe it takes a special kind of person to work at Virgin Atlantic and we’re always on the lookout for gifted young people to take our business forward”

    “Over the last few decades, flying has become a common feature of everyday life – whether for short breaks, holidays in exotic destination or business trips within Nigeria and around the world. As flying has increased, so too have expectations. Virgin Atlantic provides the alternative that consumers need, setting us aside from the rest of the industry.”

    Rachel added: “We wanted to capture the essence of Virgin Atlantic with this new campaign and bring the glamour and fun back into long-haul travel. “Flving in the Face of Ordinary” is more than a marketing campaign; it is a powerful brand proposition and long term platform that will be reflected in all areas of the business from communications and marketing to product and service.

    “The advertisement is based upon the lives of real people who work at the airline today and traces the lives of the gifted youngsters born with special skills, and how they later use those talents to become outstanding employees at the airline.

     

     

  • Reporter tracks new naira notes boom in market

    Reporter tracks new naira notes boom in market

    Do you long for the fresh smell and touch of newly-minted naira notes, but can’t find any?

    Do not despair. If you live in Abuja or its vicinity, Dei-Dei market is the answer.

    New notes are scarce and that is why questions are often asked by some concerned Nigerians regarding what could be responsible at the banks. Clearly, and going by the volumes of money displayed by these hawkers at various locations in the FCT, it has nothing to do with Central Bank of Nigeria’s policy to engender a cash-less society.

    In the past few months, many have wondered why banks no longer pay customers with new notes. Some have even suggested that they are probably no longer being produced due to the cash-less policy. However, findings by this correspondent have shown that these notes will continually remain scarce at the banks for as long as those hawking them on the streets have access to them through a special arrangement with some banking officials. No doubt, these hawkers make huge profits from the sale as many Nigerians rush to buy from them.

    For example, at the Dei Dei market, these crisp notes are usually on display like normal wares. The hawkers usually stand at strategic positions along the Kubwa-Zuba Expressway. They have a special way of attracting customers as they flip their fingers in the air suggestive of the traditional way of counting or spraying money, to pass their message to customers. They can also be identified with their polythene bags or the common Bagco bags which are often filled with new notes.

    Though they do not have specific work routine, these hawkers, mostly agile youths, are usually seen on the road between 6am and 6pm.

    Abuja Review sought to find out who the major customers are, where, and how the notes were procured, what the exchange rate is and the challenges thereof.

    One of the traders, Biliya popularly called Billy from Katsina State, explained that the job is tasking but quite rewarding considering the percentage they charge on the notes depending the denominations and amount to be exchanged.

    He spoke in pidgin English, noting: “You no fit get N100 new notes with N1000, we no dey do am. Na only from N5000 we dey change if na N100 you want. Anything wey small pass N5000, we no dey change. For N50 too, the least one can get is N5000 because it makes a bundle and to get it, an extra N1500 is paid, i.e. you give me N6500 old note to get N5000 new note.

    ”As for N20 and N10, the least one can get is N1000 and to get it, one has to forfeit N300. One pays N1300 to get N20 or N10 new note worth N10000.

    For N5, one gets a bundle which is N500 for N750.

    Vouching for the authenticity of the notes, Billy said: “No fake o. This is real money. E get number and na from bank. Na correct money. People no dey complain, if they complain, we no go dey do this business again. We never get experience of fake money. Police no dey disturb us because my Oga don register for CBN and we dey exchange dollar too. The registration is for both dollars and new naira notes”.

    Furthermore, he explained that it was not in his place to know where his boss gets the news notes from, noting that as far as the chain of supply is not broken, there was nothing to worry about.

    One of the customers who offered to speak with Abuja Review at the market, Mr. Olugbenga Ilori, justified his preference for the notes especially when attending a party.

    ”I must say that most people love new notes. It confers a kind of prestige on one. Basically, it places you in a status and boosts your ego. While you are spending it, you are excited.

    “It is unfortunate that it is scarce in banks. They don’t give unless you are a recognised customer with fat bank account with them.”

    Also speaking on the love for new notes, Tijani Ahmed said, “In as much as I love new notes, I don’t think I will go the extra mile to get it. New or old note, the most important thing is the value. If the value does not depreciate no problem.”

    Temitope Ajewole, who also admitted her love for new notes, said: “New notes make one feel good because it is fresh from the company and not many dirty hands would have touched it. The feeling that it is clean and new is okay for me even if it is N5.

    “Take, for instance, if I have new and old note in my wallet, I would prefer to spend the old one and keep the new one simply because it makes me feel good.”

    Whether these notes make people feel good or not, a big question still hang over the scarcity of the notes in banks. While the Nigerian Security Printing and Minting Company Ltd, the organisation saddled with the responsibility of the production of bank notes and coins, has declared an increase in the volume of production from 2 million notes per week at the initial stages to over 40 million notes per week, it is clear that these notes are hardly dispensed to those who need them at the banks. It is still a mystery that they somehow flow on the streets and traded like any common wares.

     

  • Reinsurer cuts gold holding amid bear market

    Reinsurer cuts gold holding amid bear market

    Greenlight Capital Re Limited (GLRE), the reinsurer that counts hedge-fund manager David Einhorn as its chairman, cut an investment in gold in the three months ended June 30 as prices fell into a bear market.

    The reinsurer according to Bloomberg, had about $50.5 million of commodities at the end of the second quarter, compared with $90.3 million on March 31, according to a regulatory filing yesterday. The cost basis for the investments fell to $41.8 million from $59.9 million in the period, the Cayman Islands-based company said.

    The “decrease in commodities was due to a decline in the price of gold combined with the disposal of a portion of our physical gold holdings,” according to the filing.

    Gold futures dropped 23 per cent last quarter, the most since Bloomberg data begins in 1975, and reached $1,179.40 an ounce on June 28, the lowest since August 2010. The metal remains in a bear market reached in April after some investors lost faith in bullion as a store of value and amid speculation that the Federal Reserve will curb its stimulus program. Goldman Sachs Group Inc. forecast July 22 that prices are likely to decline further.

    About 90 per cent of Greenlight Capital Re’s $1.01 billion of investments backing policyholder liabilities was in stocks at the end of June, according to the filing. Einhorn, 44, who oversees the portfolio, has said the bet on gold was a hedge against currency devaluation as central banks around the world have worked to stimulate the economy by buying bonds and keeping interest rates low.

    The stock market’s “rapid advance is creating a potentially unstable condition which could resolve a number of ways and is difficult to predict,” the reinsurer said. The company plans “to continue holding a combination of a significant position in gold, macro positions in the form of options on higher interest rates and foreign exchange rates, short positions in sovereign debt and sovereign credit default swaps.”

    Brian Ruby, a spokesman with ICR Inc., who represents Greenlight Capital, had no immediate comment on when the reinsurer sold its holdings.

  • ‘Raising funds from the bond market not our priority’

    The Abia State Government has ruled out going to the bond market to raise funds for provision of infrastructure.

    Addressing members of the Finance Correspondents Association of Nigeria (FICAN) in the state capital Umuahia last week, Governor Theodore Orji said he will never go to the bond market to raise funds for infrastructure.

    Instead, the governor said he would work towards increasing the state’s Internally Generated Revenue (IGR) to meet infrastructural needs.

    Orji said: “If I can increase my IGR and make do with it, why do I have to go to the bond market?

    “Bond is not free of charge. You have to pay back; it’s like a loan and you have to cut your coat according to your cloth.”

    He noted that if the state goes to the bonds market “at the end of the month before my money comes from Abuja they will take the bond.

    “I will not be able to pay salaries first, I will have big problems in my state so it is better that I manage what I have prudently and increase my IGR.”

    To increase IGR for the State, Orji said his administration has “mounted pressure on revenue generating agencies to increase the State IGR because that’s where our salvation is, not by going to the bond market and taking loan.

    “We are squeezing ourselves, we are managing and we are managing very well.”

    He added: “You can go and take an overdraft to pay salaries which you can pay under a very short period of time but N250billion or N300 billion bonds, I will never do that.

    “I have never gone to the bond market but I am happy with what I am putting on ground.”

    Orji disclosed that the major challenge bedevlling his administration is the inability of the state parastatals to sustain themselves.

     

  • How to sustain market recovery by experts

    How to sustain market recovery by experts

    As the Nigerian stock market recovers, stockbrokers and other operators have been urged to brace up for the challenges ahead and sustain the recovery.

    The Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike, made the call while speaking at the maiden edition of the annual capital market night organised by the association in Lagos recently with the theme: “Investment Opportunities in Frontier Market.”

    According to him, the market is looking up and as operators, they need to brace up for the changes coming with the market recovery.

    He therefore called for r a lot of hard work, integrity, transparency and collaborative efforts to confront the obvious changes that lie ahead.

    “We believe that by working together, all of our members will survive in one form or the other. Our association –the front-line operators of the capital market, has gone through very difficult time in the last five years since 2008, but thankfully we are beginning to see a recovery, which gives us a lot of hope going forward,” he said.

    He said the operators are very hopeful and looking forward to a market with 40 million investors from the current five million investors.

    “We are also expecting a state-of-the-art trading platform that promises great customers and operators experience, $1trillion market capitalisation and one that is the main driver of economic development,” he said.

    The ASHON chairman, who is also the managing director of Compass Investments and Securities Limited, called for the support and cooperation of all stakeholders in the efforts to attract more patronage to the market.

    “To our partners on this project called the capital market, our fellow regulators, investors and other stakeholders, we ask for support, understanding and cooperation as we work collectively to position the market to play it pivotal role in the development of our economy,” he said.

    The special guest of honour at the event and Chairman of Lafarge Cement WAPCO Nigeria Plc, Chief Olusegun Osunkeye, commended the stockbrokers for restoring investors’ confidence in the market.

    “I want to commend you for restoring investor confidence in the market. You will need to maintain a cordial relationship with regulators-the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and Financial Reporting Council of Nigeria. You will also need to train and retrain yourself to meet up with global standards. Despite the challenges in Nigeria, the nation is still a good investment destination. This is an outcome of my interaction with foreign investors. They believe that in Nigeria, there is high risk and high return-on-investment (RoI),” he said.

  • Portuguese firm eyes cash-less market

    In furtherance of cash-less banking, a Portuguese firm, SIBS International, has begun technology transfer to the Nigeria Inter-Bank Settlement System (NIBSS).

    The firm’s Managing Director, Pedro Hipolito, said with transactions worth $6 billion yearly in Portugal, SIBS is committed to expanding its operations in Nigeria to enable banks and other financial institutions to fully integrate their processes into the e-payment system.

    The firm, he said, was in partnership with many of the local banks to strengthen their Information Technology (IT) operations to enable them to achieve a seamless e-payment operations.

    His firm, he said, had been working in Nigeria to improve its payment system since the last three years, expressing support for the Central Bank of Nigeria (CBN) moderated cashless banking.

    “We have been collaborating with NIBSS and CBN on the cash-less banking initiative,” he said.

    Nigeria, he said, was making progress on e-payment, noting that connectivity remains a big challenge to cash-less as far as Point of Service (PoS) is concerned. He said although there were over 150,000 PoS in Lagos, it is not all about number but workability of the platforms.

    There was need, he said, to ensure that Automated Teller Machines (ATMs) and PoS were in good conditions, because this would help in building confidence in e-payment in the country. He said his firm was working on bringing in ATMs that are multifunctional, with ability to receive tax remittances and biometrics that can cater for the blind within the population among other roles. He said such improved services would make life easier for the people.

    Hipolito said though ATMs were developed as just cash dispensers, they have evolved into many other bank-related functions. In some countries, especially those, which benefit from a fully integrated cross-bank ATM network, ATMs include many functions, which are not directly related to the management of one’s own bank account.

    These include deposit currency recognition, acceptance, recycling, paying routine bills, fees, and taxes, printing bank statements, pre-paid cell phone/mobile phone credit among others. He said that his firm is committed to ensuring that Nigerians get the full benefits associated with ATMs usage.

     

  • Lagos to rebuild burnt market

    •Inaugurates Eko Gas, health centre 

    Lagos State Governor Babatunde Fashola has pledged to rebuild the Trinity Auto Spare Parts Market in Ajeromi-Ifelodun Local Government Area, which was gutted by fire last Sunday.

    The fire, which started around 3:30pm, razed shops and property worth millions of naira.

    Fashola spoke yesterday when he visited the market. He said the rebuilding would require a synergy between the traders and the government.

    He was conducted round the market by the Commissioner for Special Duties, Dr. Wale Ahmed and the Chairman of Zone E Plaza, Mr. Mike Ekeobi.

    The governor said: “Those who still have goods in the market should remove them now. We will move our experts here to take the drawing and begin construction immediately.”

    He urged traders to insure their businesses to minimise their losses when disasters occur.

    Fashola said: “It is only the building that can return but the goods will not. I urge markets and warehouse owners to insure their businesses with insurance companies. This is what insurance is meant to do for us.

    “If this place was insured, the people would have been talking to the insurance companies instead of the government.”

    The traders urged the government to assist them.

    Also yesterday, the governor inaugurated the Liquefied Petroleum Gas (LPG), also known as the Eko Cooking Gas, at Masha Roundabout in Surulere, Lagos.

    This is aimed at phasing out the use of kerosene stoves and firewood to curb environmental pollution.

    Fashola said: “The Eko Cooking Gas will eradicate the hazards faced by residents in their search for kerosene, explosion and respiratory diseases associated with cooking with firewood and charcoal. That is the simple message. This was what we used when I was a child. We are back to the beginning. This was where we started.

    “This administration is committed to raising the standard of living. Cooking gas is no longer the preserve of the rich in Lagos. We have intervened to make the cylinders available at affordable prices.

    “This project symbolises the move to bridge the gap between the rich and the poor.”

    The governor also inaugurated a Primary Health Centre (PHC) in Itire-Ikate, where he stressed the need for family planning.

    He said the economic implications of having many children are far-reaching, hence the need for couples to plan their families.

  • Mobil: Winning market, losing value

    Mobil Oil Nigeria Plc appears to be in a paradox of winning the market but losing the value. The petroleum-marketing major has reversed the decline in sales that brought its turnover to its lowest in 2010 with significant growth in sales in 2011 and last year. But profit, which had grown consecutively over the previous four years, witnessed a major reversal last year as the company struggled with high costs and poor liquidity.

    Audited report and accounts of Mobil Oil Nigeria for the year ended December 31, 2012 showed 30 per cent increase in sales but pre and post-tax profits dwindled by 32 per cent and 30 per cent respectively. The outward negative bottom-line performance underlined substantial decline in the intrinsic profit-making capacity of the oil major, a situation that was exacerbated by growing financial leverage and worsening liquidity crunch.

    Average profit per unit of sale nearly halved during the year, which also simultaneously, almost on the same scale, affected underlying returns to shareholders and other stakeholders. With 1,850 per cent increase in short-term bank loans, the gearing ratio moved from 0.5 per cent to 6.5 per cent. While the gearing ratio on the basis of overdraft remained somewhat negligible, 80 per cent increase in finance expenses to N299 million, further complicated the top-loaded cost structure of the company. These reduced basic net distributable earnings by about 41 per cent and also lowered the sustainable dividend outlook of the company, in spite of the retention of cash dividend per share at flat rate of N5 for the past two years.

    The combination of declining profitability, worsening liquidity, negative working capital, rising financial leverage and lower cost efficiency overshadowed impressive growth in sales and underlined the need for re-evaluation of the growth strategy of the oil major towards a value-driven approach.

     

    Financing structure

     

    Mobil Oil Nigeria’s paid up capital increased by 20 per cent from N150.2 million, made up of 300.5 million ordinary shares of 50 kobo each, in 2011 to N180.3 million, consisting of 360.6 million ordinary shares of 50 kobo each, in 2012. The increase was due entirely to a one-for-five bonus issue made for the 2011 business year. Shareholders’ funds meanwhile, grew by 46.5 per cent from N4.50 billion to N6.59 billion, largely due to inflow of some 37 per cent of net earnings into the reserves.

    Total assets increased slightly by 7.9 per cent from N31.11 billion to N33.56 billion. Current assets dropped by 17 per cent from N14.07 billion to N11.69 billion while long-term assets increased by 28 per cent from N17.04 billion to N21.88 billion. Total liabilities were nearly flat at N26.97 billion in 2012 as against N26.61 billion in 2011.

    The financing structure was largely stable, although increased financial leverage tempered the outlook. The proportion of equity funds to total assets improved from 14.5 per cent in 2011 to 19.6 per cent. Long-term liabilities/total assets ratio stood at 44 per cent in 2011 as against 46 per cent in 2011, while current liabilities/total assets ratio improved from 40 per cent to 37 per cent. However, the company showed increased leverage with debt-to-equity ratio of 6.5 per cent in 2012 as against 0.5 per cent in 2011.

     

    Efficiency

     

    The petroleum-marketing company obviously witnessed considerable decline in productivity and efficiency during the period, although available details were not sufficient to determine the actual unit level of productivity and overall efficiency. The ratio of total costs of business-excluding interest expenses, in relation to sales worsened to 98.1 per cent in 2012 compared with 94.2 per cent recorded in 2011, underlining further erosion in margins and returns.

     

    Profitability

     

    Mobil Oil Nigeria shows an inverse relationship between sales and profitability. While sales recorded impressive double-digit growth; profit dropped by similar rate. This rubbed off negatively on actual and underlying returns to shareholders and other stakeholders.

    Total sales peaked at N80.80 billion in 2012 as against N62.10 billion in 2011, sustaining a commendable successive growth trend. However, cost of sales outpaced sales growth with 40 per cent increase to N72.59 billion in 2012 as against N51.96 billion in 2011. This lowered gross profit by 19 from N10.14 billion to N8.21 billion. A stable total operating expense moderated the mid-line at N6.68 billion in 2012 compared with N6.52 billion in 2011. Non-core business income increased by 12 per cent from N2.55 billion to N2.85 billion. This was counterbalanced partly by 80 per cent increase in interest expense from N166 million to N299 million. Thus, profit before tax slumped to N4.1 billion as against N6 billion in previous year. After taxes, net profit for the year dwindled to N2.88 billion compared with N4.1 billion in 2011.

    Earnings analysis underlined the negative bottom-line performance. Basic earnings per share dropped from N13.58 in 2011 to N7.98 in 2012, a dip of 41 per cent. The company retained a dividend per share of N5, the same rate paid for the 2011 business year, but the 20 per cent increase occasioned by 20 per cent bonus issue for 2011 increased gross dividend from N1.50 billion to N1.80 billion. Meanwhile, net assets per share improved by 22 per cent from N14.97 to N18.28.

    Key underlying profitability and return ratios were generally lower. Gross profit margin dropped from 16.3 per cent to 10.2 per cent. Pre-tax profit margin nearly halved from 9.7 per cent to 5.0 per cent. Return on total assets dwindled from 19.3 per cent to 12.1 per cent. Return on equity halved to 43.7 per cent as against 90.8 per cent. With lower basic earnings and constant dividend, sustainable dividend outlook dimmed to 1.60 times last year as against 2.72 times in 2011.

     

    Liquidity

     

    The liquidity position of the company worsened considerably in 2012 with negative working capital and lower financing coverage for emerging financial obligations. Current ratio, which broadly indicates ability of the company to meet emerging financing needs by relating current assets to relative liabilities, slipped below generally acceptable one-for-one benchmark from 1.14 times in 2011 to 0.95 times in 2012. With reversal of positive working of N1.71 billion to –N646 million in 2012, the proportion of working capital to total sales declined from 2.8 per cent to -0.8 per cent. Debtors/creditors ratio stood at 62.1 per cent in 2012 as against 87.4 per cent in 2011.

     

    Governance and structures

     

    Mobil Oil Nigeria was incorporated as a private limited liability company in 1951 and converted to a public limited liability company in 1978. Its shares were listed on the Nigerian Stock Exchange (NSE) in 1979. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America, which holds 60 per cent equity stake.

    With more than 200 retail outlets spread across the 36 states and three ultra-modern multi-purpose plants located in Apapa, Lagos State, Mobil Oil Nigeria is one of the dominant petroleum-marketing companies and it particularly holds distinction as the earliest petroleum-marketing company to be incorporated in Nigeria. It’s the second most capitalised quoted petroleum-marketing company.

    The board and management of the company remained stable. Mr Adetunji Oyebanji remains the Chairman and Chief Executive of the company. The combination of chairmanship and chief executive is contrary to the code of corporate governance for publicly listed companies, which requires separation of both positions. Besides, Mobil Oil Nigeria is well-regarded in terms of compliance and best practices.

     

    Analyst’s opinion

     

    The latest audited report underlined the difficult operating environment in the downstream sector but it also reflected the need for a careful consideration of the business strategy of Mobil Oil Nigeria. While the sales growth is commendable, and should be sustained, the company needs to realign its costs to optimise sales into tangible returns to shareholders. With relatively low margin and little product differentiation, protracted reform and many lingering often-negative controversies have been major constraints to Nigerian downstream operators. The year under review had started with a petroleum price crisis, which later snowballed into scandalous oil subsidy probe, which left most oil companies scampering to clear their names from the mess.

    Mobil Oil Nigeria needs to harness its vast potential and rise above the challenges. It may also need to consider additional capital to strengthen its balance sheet and reduce dependence on short-term high-interest loans.

     

  • Emerging markets seek inclusion in global regulatory reform

    Emerging markets seek inclusion in global regulatory reform

    Securities regulators in the emerging markets have called for greater reflection of the views and positions of emerging markets in the early stages of new international regulatory reforms to ensure a more inclusive and reflective global reform.

    At a three-day meeting of emerging market securities regulators of the International Organisation of Securities Commissions (IOSCO) last week, the name of the group was changed from Emerging Market Committee (EMC) to Growth and Emerging Markets (GEM) Committee to better reflect the nature of the markets in which its members operate. The 86 members of GEM Committee include some of world’s fastest growing economies and 10 of the G-20 members.

    Emerging market regulators said they would seek to provide greater focus towards balancing growth and implementation of regulation, including looking at greater inclusiveness, strengthening channels of communication and developing greater regulatory capacity for emerging markets.

    The group reinforced strong support for the establishment of the IOSCO Foundation, which will assist members in their market development and capacity building efforts.

    Members urged industry to support the Foundation expeditiously so that emerging markets can benefit from the overall activities relating to three pillars: research, education and training, and technical assistance noting that increased funding of these activities will be of significant benefit to emerging market members, especially at a time of growing demand for market-based financing.

    Also at the meeting, Chairman of the Securities Commission Malaysia, Ranjit Ajit Singh, was elected the new chairman of the GEMC while Bert Chanetsa, deputy executive officer capital markets, Financial Services Board, South Africa, was elected as the vice chairman.

    Singh said there was a major opportunity for emerging markets to contribute to global discussions and for the committee to be a highly visible, effective and inclusive grouping for emerging markets.

    “In doing so, emerging markets must have a stronger and more inclusive voice and be supported by an efficient structure and process. The contribution to global regulatory debate must be enhanced. Market development and capacity building efforts remain critical for many emerging markets and we look forward to the establishment of the IOSCO Foundation,” Singh said.

    Chairman of the board of IOSCO, Greg Medcraft, who was present at the meetings, noted that emerging financial markets have a very significant role to play in global economic growth pointing out that the leadership of the EMC is critical to ensure IOSCO is seen as effective, pro-active and forward looking.

    “We look forward to the support from the industry to be able to launch the IOSCO Foundation soon. I look forward to working together with the new chair and vice chair of the GEMC towards achieving these objectives,” Medcraft said.

    The committee also held a public conference and discussed, among other panels, the impact of global regulatory reforms on emerging securities markets.

    Panelists emphasised the need for better streamlining of conduct and prudential regulation, and to ensure a strong and cohesive way to communicate these views at a higher level.

    The panel on impact of high frequency trading and algorithmic trading on emerging markets acknowledged that HFT and algorithms are the new normal, and it is critical to have a sound regulatory framework to ensure markets continue to operate in a fair, orderly and transparent manner.

    IOSCO is the leading international policy forum for securities regulators and is recognised as the global standard setter for securities regulation. The organisation’s membership regulates more than 95 per cent of the world’s securities markets in more than 115 jurisdictions.