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

_World Economic and Financial Surveys, April 20, 2004_

## Source details

**Canonical URL:** [Emerging Local Securities and Derivatives Markets: Recent Developments and Policy Issues](https://www.imf.org/en/publications/world-economic-and-financial-surveys/issues/2016/12/30/emerging-local-securities-and-derivatives-markets-recent-developments-and-policy-issues-16878)

## Other formats

- [Markdown version](/en/publications/world-economic-and-financial-surveys/issues/2016/12/30/emerging-local-securities-and-derivatives-markets-recent-developments-and-policy-issues-16878/index.md)
- [Structured JSON version](/en/publications/world-economic-and-financial-surveys/issues/2016/12/30/emerging-local-securities-and-derivatives-markets-recent-developments-and-policy-issues-16878/index.json)
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## Bibliographic details
- Authors: Ramana Ramaswamy, Jorge Roldos, Donald J Mathieson, Anna Ilyina
- Published: April 20, 2004
- Series: World Economic and Financial Surveys
- DOI: https://doi.org/10.5089/9781589062917.083

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### Background and Purpose
- Many emerging market economies, responding to the volatility of capital flows since the mid-1990s, have pursued measures to “selfinsure” against volatile capital flows.
- Development of local securities and derivatives markets has been one such measure, intended to provide an alternative source of funding for the public and corporate sectors.
- This paper examines the self-insurance policy by assessing:
  - The extent to which emerging markets have developed local securities and derivatives.
  - The key policy issues arising from that development.

### Authors and Publication
- Authors: Ramana Ramaswamy, Jorge Roldos, Donald J Mathieson, Anna Ilyina
- Date: April 20, 2004
- Series: World Economic and Financial Surveys No 2004/018
- Issue: 018
- Volume: 2004
- Pages: 101
- DOI: https://doi.org/10.5089/9781589062917.083
- Stock No: WEOEA0202004
- ISBN: 9781589062917
- ISSN: 0258-7440

### Scope and Subjects Covered
- Subject areas:
  - Bonds, Corporate bonds, Derivative markets, Emerging and frontier financial markets, Financial institutions, Financial markets, Securities markets, Stock markets
- Keywords:
  - Africa, Asia and Pacific, B share, bond market, Bonds, derivative instrument, Derivative markets, Eastern Europe, Emerging and frontier financial markets, emerging market equities, Europe, fixed income, Global, global bond, investor, market, market participant, price-earnings ratio, Securities markets, Stock markets, U.S. dollar, WEFS

### Principal Findings (as stated)
- Emerging markets have actively developed local securities and derivatives markets as part of a broader “selfinsurance” policy toolkit.
- Local markets have served as an alternative funding source for both public and corporate sectors in emerging market economies.
- The expansion of these markets has generated a set of key policy issues that require attention (the paper focuses on identifying and analyzing these issues).

### Policy Issues Emphasized
- The study focuses on policy challenges that arise from the development of local securities and derivatives, including (but not limited to):
  - Market structure and depth needed to support effective local funding alternatives.
  - Regulatory and supervisory frameworks suitable for securities and derivatives markets.
  - Investor base development and implications for market liquidity and pricing.
  - Risk management capacity in public and corporate sectors to use local instruments effectively.

### How the Paper Is Positioned
- The paper situates the development of local securities and derivatives markets within the broader objective of mitigating external vulnerability stemming from volatile capital flows.
- It serves as an analytical resource for policymakers considering local market development as part of their macrofinancial resilience strategies.

*International Monetary Fund — Emerging Local Securities and Derivatives Markets: Recent Developments and Policy Issues (April 20, 2004), World Economic and Financial Surveys No 2004/018, Pages: 101, DOI: https://doi.org/10.5089/9781589062917.083*

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## Content in this bundle

- **_derivmkts**
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  - [_derivmkts (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wefs/2004/_derivmkts.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/world-economic-and-financial-surveys/issues/2016/12/30/emerging-local-securities-and-derivatives-markets-recent-developments-and-policy-issues-16878_