Mumbai, May 05, 2010: South Asian Federation of Exchanges (SAFE), a regional forum of exchanges and regulated entities, has elected Mr. Joseph Massey, Managing Director and Chief Executive Officer of MCX Stock Exchange, as Chairman.
Mr. Massey, who takes over the reins of the regional body from Mr. Adnan Afridi, Managing Director of Karachi Stock Exchange, was elected head of SAFE at its Annual General Meeting (AGM) held at Mauritius on April 24, 2010. The AGM coincided with the South Asian Capital Markets Conference, which was attended by over 150 delegates from various countries.
Mr. Massey’s election to the regional body comes at a time when South Asian financial markets are experiencing a rapid growth in size, scope and significance. A region where seven out of eight countries are currently experiencing a real GDP growth of over 6 per cent with India leading at 8 per cent, South Asia is one of the most vibrant and dynamic regions in the world. South Asia’s economic growth in 2011 is expected to be clear 5 percentage points higher than that of the world average and nearly two percentage points greater than developing countries.
South Asia also came out strongly in terms of domestic macroeconomic stability and external strength. During the period 1990 and 2008, external debt as a percentage of gross national income fell from 31.6% to 21.3%; debt service to exports declined from 27.4% to 14.4%; short-term debt to external debt fell from 9.8% to 3.8%; reserves to external debt surged from 6.5% to 29.3% and reserves to imports shot up from 1.9 months to 4.8 months.
The most promising aspect of the South Asia is its financial sector. According to the recent Global Development Finance of the World Bank, 78.5% of the change in the growth rate of potential output during the period 2003-07 was contributed by deepening of the financial sector. Between 2000 and 2007, in South Asia, private credit by banks as a percentage of GDP rose from 25.6% to 40.4% and stock market capitalisation from 26.1% to 133.4% -- growth rates that surpassed averages of most of the region.
Net capital flows into the region increased from about $8 billion in 2001 to $116 billion in 2007. South Asia also experienced sharp surge in the investment rates among the regions from 22% in 2000 to 32.8% in 2007.
South Asia Federation of Exchanges (SAFE) expanded its operations during the last 10 years to include members from South Asia, Middle East and Africa and is now poised to play an important and significant role in promoting cross-border cooperation among the financial institutions in the
region and develop consultative process on a wide range of policies pertaining to regional financial markets and its integration with the global markets. The challenges of this region are similar. Low financial inclusion, unemployment, large rural population, poor infrastructures, low literacy and relatively underdeveloped financial sector are some of the problems common to this region.
As the head, Mr. Massey will drive the important agenda of the SAFE that was carved out at the AGM, which includes strengthening relationships with international organisations and regulators, enhancing greater cooperation among market participants in the region through appropriate government systems, sharing learning for mutual development and ensuring that the region aligned its regulatory system with the global markets for increasing confidence of investors in this region.
Following his election to the regional forum, Mr. Massey said, “It is a great privilege to lead SAFE, which is a major regional forum in the South Asian financial markets. SAFE will strive to harness the potential of growth opportunities in the region with particular focus on attracting sustainable foreign investments, developing consultations on global and domestic financial regulation, exploring cross-border cooperation to enhance business, etc. It is in this context that the South Asian Capital Markets Conference, which SAFE organises every year, will henceforth be held in the name of South Asian Investment Conference.”
Notes to Editors
About South Asian Federation of Exchanges (www.safe-asia.com)
The South Asian Federation of Exchanges (SAFE) is a forum launched by bourses in South Asia to promote development of securities markets in the region. The inception of SAFE marks an important milestone in the march of South Asian capital markets towards regional and global integration. Membership of SAFE includes exchanges in the eight-member countries from South Asia, Africa and the Middle East. India is a founding member country of SAFE.
The imperatives of globalisation necessitate increasing interdependence among nations in terms of business, politics and cross-cultural activities. Consequently, capital markets in South Asia can no longer afford to remain insulated from each other or from the rest of the world. The markets have overlapping concerns and interests that need to be recognised and addressed. SAFE is the logical culmination of this realisation. The members of SAFE have agreed to work towards common standards, including international accounting standards and best business practices in capital markets. SAFE will represent its members in related international forums, encourage cross-border listing, co-operate in human resource development, facilitate technology transfer among members and address other issues of common interest.
About MCX-SX (www.mcx-sx.com)
MCX-SX, India’s New Stock Exchange, is a leader in offering nationwide electronic platform to trade in Currency (FX), and is poised to enter into Interest Rate Futures (IRF), Equities (Cash & F&O), Indices and ETF, Fixed Income (Debt) and SME (Small Medium Enterprises)
Promoted by Multi Commodity Exchange (MCX) and Financial Technologies (India) Ltd (FTIL), MCX-SX is recognised under Sec 4 of Securities Contracts (Regulation)
For Further Information, contact:
Farzin Khan, Deputy Secretary General, SAFE
Board No: +92 (51) 282 6763
farzin.khan@
Setu Shah, VP – Communications, MCX-SX
Board No: +91 22 67319000, Mobile: +91 9930267595
setu.shah@mcx-
