World Economic and Financial Surveys

Emerging Local Securities and Derivatives Markets: Recent Developments and Policy Issues

Author/Editor:

Ramana Ramaswamy ; Jorge Roldos ; Donald J Mathieson ; Anna Ilyina

Publication Date:

April 20, 2004

Electronic Access:

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Summary:

In response to the volatility of capital flows since the mid-1990s, many emerging market economies have taken a variety of steps designed to “selfinsure” against volatile capital flows. One such measure has been the development of local securities and derivatives markets as an alternative source of funding the public and corporate sectors. This paper examines this self-insurance policy, focusing on the extent to which emerging markets have developed local securities and derivatives, and what key policy issues have arisen as a result.

Series:

World Economic and Financial Surveys No. 2004/018

Subject:

Bonds Corporate bonds Derivative markets Emerging and frontier financial markets Financial institutions Financial markets Securities markets Stock markets