ISSA publishes the CSD Working Group report: Best Practices for Frontier and Emerging Markets attracting foreign portfolio investment

ISSA is delighted to publish the new paper from the CSD Working Group (WG): Best Practices for Frontier and Emerging Markets attracting foreign portfolio investment.  This paper is targeted at helping CSDs and local authorities attract more foreign portfolio investment and makes a series of observations and recommendations to that effect.

The WG believes that it is beneficial for a country to open its market and to increase the diversified funding of its economy. However, it recognises that changing a market is complex, time consuming and requires political will across the spectrum. Attracting funding is also difficult and becoming increasingly so due to several factors highlighted later in this report.

Success will come from the collective efforts of government (legal certainty, fiscal rules), the exchange(s) and trade intermediaries, the country’s credit institutions, the CSDs and CSD participants,- as well as from a change in external views, such as ‘grey listing’ from OFAC. These efforts, supported by investment professional associations and a series of effective public consultations, will combine to make a country’s market more attractive to foreign portfolio investment.

As always, ISSA welcomes feedback from readers.

Kind regards,

Colin Parry