Archive for the 'Training' Category

First graduate course for capital markets professionals

Capital markets practitioners across Africa can benefit from a graduate-level programme launched this week by the IFC, a member of the World Bank Group, the Milken Institute and the George Washington University.

The programme initially focuses on sub-Saharan Africa, and aims to expand to other regions. The curriculum is tailored to address challenges specific to developing economies, according to a press release.

Michael Milken, Jingdong Hua and Steven Knapp

Michael Milken, Jingdong Hua and Steven Knapp

The programme was launched on 3 May and the first 20 students from capital market authorities, central banks and ministries of finance in Angola, Democratic Republic of Congo, the Gambia, Kenya, Malawi, Mozambique, Rwanda, Uganda, Saudi Arabia, the Seychelles, and Zambia begin in August 2016 and will graduate in May 2017.

The course will equip mid-career professionals with the analytical tools and practical experience to support capital-market development in their countries. It is held over eight months and combines rigorous coursework and a work placement opportunity.

It leverages the academic excellence of the George Washington University School of Business, offering course work from financial modelling and computation to regulatory and legal aspects of capital-market development. The IFC boosts this with case studies drawn from it unparalleled experience in supporting domestic capital-market development in countries as diverse as the Dominican Republic, India, and Rwanda.

A speaker series will offer additional opportunities for interaction with thought leaders, practitioners and pioneers in the international capital markets. In the spring semester, program participants will put learning into practice through work placements with the Milken Institute’s wide network of public and private sector collaborators.

When they successfully complete the programme, participants receive an academic certificate from the George Washington University and are expected to return to their home countries to work on local capital markets for at least 2 years. They will also belong to an active alumni network that will collectively foster the next generation of capital market leaders in developing regions.

Michael Milken, Chairman of the Milken Institute, said: “Capital markets multiply the vast potential of human and social capital—and thereby contribute to economic growth and prosperity.”

Steven Knapp, President of the George Washington University, said “This unique partnership has the potential to bring millions of people in the developing world out of poverty by developing effective capital markets and stronger financial institutions. The program will make the connection between classroom instruction and real-world experience that is a hallmark of the George Washington experience.”

Jingdong Hua, IFC Vice President and Treasurer, said: “A well-functioning capital market is not a luxury; it is a necessity. Deep, vibrant capital markets are essential for a thriving private sector that creates jobs and enables economies to achieve their full potential.”

For more information on the program, visit cmp.milkeninstitute.org.

George Washington University

George Washington University

Building African Financial Markets seminar

The 5th Building African Financial Markets (BAFM) capacity-building seminar is coming to the Nigerian Stock Exchange Event Centre in Lagos on 28-29 April. This is the top seminar for professionals and strategic leaders from capital markets all over the continent, including securities exchanges, clearing and settlement, stockbrokers, investors, government officials and any organisations which are part of capital markets system. It is organized by the NSE and the African Securities Exchanges Association.

The seminar includes a market closing/opening ceremony and focused learning interactive sessions on key topics around driving liquidity in African capital markets. Topics are very relevant, including securities lending, strengthening equity market structures, derivatives and CCP, optimal price mechanism, global reporting standards, information security, and capital markets integration.

Its suitable for seniors from capital and financial markets in product development, regulation and policy, information technology, investor relations, trading, clearing and settlement.

BAFM-III (1)

  • Role of securities lending in boosting liquidity in African capital markets
  • Strengthening equity market structures in Africa to better address low liquidity
  • Instituting an optimal price mechanism on African stock exchanges
  • Capital market integration – a catalyst for boosting liquidity on African stock exchanges
  • Liquidity enabling regulation
  • Role and importance of CCP in a derivatives market
  • Trading derivatives products – how the products work?
  • Rules governing CCP
  • Adhering to best global reporting standards
  • Information security – protecting your market’s digital assets.

According to the organizers: “As African economies reposition themselves following the significant impact of global headwinds that have challenged the continent’s growth prospects, African capital markets are instrumental in financing the continent’s infrastructure and capital requirements.”

Cost is NGN70,000 plus VAT/$350. For more go to NSE website.

Capital markets course offered in Nairobi

The Nairobi Securities Exchange is calling for applicants for a “certified capital markets specialist” course, to be held on 16-20 March at the Ole Sereni Hotel, Nairobi. Registration has been extended to 10 March. Places cost $1,995 + VAT.
The course for 30 participants is organized by Intellisys Business Solutions Ltd in partnership with the International Association of Finance Management, headquartered in Luxembourg. According to its website it is a global organization that provides financial training courses to professionals, institutions and corporations around various locations and programmes in banking, insurance, capital markets, wealth management, risk management and project finance.
The course is facilitated by Michael Preiss, a member of the Interfima management committee. According to his bio he is a senior investment advisor based in London, advising ultra high net worth and key clients in Russia, Middle East and Africa. He has also worked at HSBC Private Bank in Dubai and the Middle East and Standard Chartered Bank in Hong Kong and Singapore.
There is not an obvious connection with the regional-focused training courses organized by the Securities Industry Training Institute (SITI) and funded by International Finance Corporation as part of its Efficient Securities Markets Institutional Development (ESMID) programme (www.ifc.org) with the Swedish International Development Authority and the World Bank. According to this story, this was launched in 2009 and is based in Kampala, aiming to offer certified courses that would be recognized across the region to thousands over a 10 year period.

East African securities exchange integration – what’s on in 2015

Securities exchanges in East Africa are working together on the infrastructure for tighter cooperation and links between the capital markets of Rwanda, Kenya, Uganda and Tanzania and potentially Burundi. The body for cooperation is the East African Securities Exchanges Association (EASEA). The key integration driver is the Technical Working Group (TWG), which has a member from each State. It was established by the East African Community (EAC) to review the best infrastructure and legal framework to facilitate seamless cross-border movement of capital.

Training and qualifications
Also important is the Securities Industry Training Institute (SITI) East Africa, which is improving skills and technical capacity to international standards and creating regional qualifications to enable skilled candidates to work across the region. For 2015 SITI East Africa aims to help more market players and regulators have SITI certification and examinations and is driving training to meet the growing demand for expertise. SITI was set up in 2009 to establish a common curriculum. See this post about the launch of SITI.

Infrastructure
A regional inter-depository transfer mechanism is in place to support movement of cross-listed securities and provide possibilities for investors seeking cross-border trading and investment opportunities. It is part of a capital market infrastructure project progressing under the EAC Financial Sector Development Regional Project (FSDRP I). Each country is leading publicity and workshops to raise awareness and boost cross-border trading.

Backbone – new directives
The TWG is developing Council Directives “which will be the backbone of the proposed integration of the regional capital markets”, according to the communiqué (“EASEA Press Release”) of the last EASEA meeting. The directives under public discussion are:
1. Council Directive of the EAC on Central Securities Depository
2. Council Directive of the EAC on Securities Exchanges
3. Council Directive of the EAC on Self-Regulatory Organizations
4. Council Directive of the EAC on Conduct of Business for Market Intermediaries
5. Council Directive of the EAC on Corporate Governance for Listing Companies.

The TWG has also drafted and completed directives on
1. Council Directive of the EAC on Investor Compensation Schemes
2. Council Directive of the EAC on Financial Education and Consumer Protection
3. Council Directive of the EAC on Disaster Recovery for Capital Market Infrastructure
4. Council Directive of the EAC on Regulated Activities
5. Council Directive of the EAC on Credit-Rating Agencies
6. Council Directive of the EAC on Regulatory Authorities
7. Council Directive of the EAC on Anti-Money Laundering and Combating of Financial Terrorism

The last meeting of EASEA was 26-27 November and Tanzania did not attend. The next is due in Uganda in the Q2 of 2015. EASEA is a member of the Capital Markets Development Committee (CMDC) of the East African Community (EAC) – a committee of the East African Community Secretariat, according to the Uganda Securities Exchange website. The CMDC objectives include

  • Establish cross-listing of stocks, a rating system of listed companies and an index of trading performance to facilitate the negotiation and sale of shares within and external to the Community
  • Ensure unimpeded flow of capital within the Community by facilitating the removal of controls on the transfer of capital among the Partner States
  • Prevent money-laundering activities through the capital markets
  • Ensure that the citizens of and persons resident in a Partner State are allowed to acquire stocks, shares and other securities or to invest in enterprises in the other Partner States

Encourage cross-border trade in financial instruments.

JSE and ASEA host African exchanges for capacity-building

Best wishes to the organizers and all the African exchanges personnel attending the Building African Financial Markets (BAFM) seminar in Johannesburg from 10-12 September!

The Johannesburg Stock Exchange (JSE) and the African Securities Exchanges Association (ASEA), supported by the World Bank Group, are hosting the third BAFM seminar this week, bringing together representatives from stock exchanges, regulatory bodies, stockbroking firms and other interested parties from several African countries including Nigeria, Mauritius, Zimbabwe and Malawi.

Topics to be covered include the future of African stock exchanges and whether they can play a meaningful role in the growth and development of the African continent. Zeona Jacobs, Director: Marketing and Corporate Affairs at the JSE, says in a press release: “Stock exchanges play a crucial role in the development of economies by allowing companies to raise capital through an efficient and transparent platform.” Jacobs says the conference provides an opportunity for exchanges from around the continent to share ideas and learn from each other’s experiences.

“Exchanges are key parts of the economies in which they operate. Initiatives such as this form an integral part of the continued development of sustainable economies within the continent by enabling open conversations about how to strengthen investor confidence, address governance issues and promote financial literacy.”

The conference will also include sessions around the development of commodity markets, exchange traded funds, electronic bond markets and demutualisation.

Free masterclass in funding sources for capital markets development (9-10 April)

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African capital markets could raise more donor finance and other resources to drive development projects. There are substantial technical, financial and other resources available to spur market growth, driven by the key role that African securities exchanges, private equity and other institutions can play in driving economic growth, creating jobs and channelling investment, but exchanges, governments and regulators have not been as successful in applying compared to other emerging markets.
Developing projects and raising finance is the subject for a FREE masterclass in “Funding Sources for Capital Markets Development”. This will be held on 9 April (2pm-5pm)-10 April (9am-1pm, approx) in the Museum of American Finance in New York City.
The masterclass is organized by ISEEE (International Stock Exchange Executives Emeriti, Inc. (www.capitalmarketexperts.org) and is highly recommended to African and other emerging markets securities exchanges executives, regulators such as Securities and Exchanges Commissions, and policy-makers. All stakeholders can apply.
The agenda includes overview of potential financing sources; specifics of donors and international financial institutions interested; defining project objectives and beneficiaries; case studies of exchange, securities commission and clearing house projects; and workshops in drafting funding applications.
The masterclass is presented by capital markets development expert Hannes Takacs of CAPMEX (www.capmex.com) and Dr Drasko Veselinovic, founder of the Ljubljana Stock Exchange (www.ljse.si). Drasko is a professor with a doctorate in financial economics with extensive experience in buiding and running securities exchanges and banking, as well as in privatization, non-executive board directorships and capital markets development.
I have had the pleasure of working with Hannes on several capital markets strategy projects, including in Dar es Salaam and Baku, and I can highly recommend his deep knowledge and experience, combined with a pragmatic approach. He has very extensive experience of working on securities exchanges and capital markets development projects all over the world, including Russia, China, SE Asia, and he is on the board of several stock exchanges in central Europe and does many training and other sessions.
He has a very good knowledge of securities markets developments. He pointed out that very few of the donor-funded securities market development projects are happening in Africa, despite this being a priority for many donors, compared to other regions.
According to Hannes: “The participants in this free-of-charge interactive master class will learn how to design development projects for capital market development, exchanges, clearing houses and supervisory authorities, which are eligible for funding by international finance institutions, multilateral development banks and donor agencies.”
Hannes is also ready to answer any individual questions, email him on hat@capmex.com. For more information and the brochure and application form, apply here as early as possible. Participants have to cover their own travel and accommodation expenses.

Dar es Salaam Stock Exchange chief opens trading on the London Stock Exchange

Moremi Marwa of DSE and UK Secretary of State for International Development open trading on the London Stock Exchange. Credit: London Stock Exchange

Moremi Marwa of DSE and UK Secretary of State for International Development open trading on the London Stock Exchange. Credit: London Stock Exchange

The CEO of Tanzania’s Dar es Salaam Stock Exchange (www.dse.co.tz) Moremi Marwa opened trading on the London Stock Exchange (www.lseg.com) on Monday (27 Jan) alongside the UK Secretary of State for International Development, the Rt Hon. Justine Greening MP. The London Stock Exchange Group also signed a Memorandum of Understanding with Britain’s Department for International Development (DFID) to work on capital markets development projects across Africa south of the Sahara, using the expertise of the London Stock Exchange Group Academy.

According to a press release from LSE: “LSEG Academy will work with up to 50 Tanzanian market operators, regulators and professionals with the aim of helping to fast track the development of a long term, sustainable equity capital market.” The opening ceremony event was hosted by Alexander Justham, CEO of London Stock Exchange plc, and launches a year-long training and professional development programme.

LSEG and DFID are to work together to help build the pool of skilled professionals in government and the private sector required to continue growing capital markets in sub-Saharan Africa. These initiatives will be facilitated in co-ordination with DFID’s country programmes and financial-sector relationships.

LSEG Academy has good track record in delivering bespoke training programmes for emerging and frontier-market institutions and participants, including the regulator of the Angolan capital market, the Kuwait Stock Exchange, the Mongolian Stock Exchange, the Saudi Capital Markets Authority and Romanian capital markets institutions. LSEG’s technology division, MillenniumIT, has worked with 13 African exchanges and infrastructure providers.

LSE’s Justham said: “This is an exciting day and we are delighted to welcome so many of the leading figures from Tanzania’s capital markets. Both London Stock Exchange and DFID understand the importance of economic growth in improving people’s lives. By combining our expertise and experience in this innovative partnership, we hope to enhance capital markets across sub-Saharan Africa, so that they in turn can help companies to grow and create vital jobs.”

London Stock Exchange traces its history back to 1801 but now operates international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe’s leading fixed-income market; and the pan-European multilateral trading facility (MTF) Turquoise. It offers “unrivalled access to Europe’s capital markets”. It also operates post-trade and risk management services including CC&G, a central counterparty clearing house (CCP) headquartered in Rome, and Monte Titoli, the significant European settlement business, and it is majority owner of LCH.Clearnet, a leading multi-asset global CCP.

The LSE offers real-time and reference data products, including: Sedol, UnaVista, Proquote and RNS, as well as access to over 200,000 international equity, bond and alternative asset class indices, through LSEG’s world-leading index provider, FTSE. It is a leading developer of high-performance trading platforms and capital markets software. The LSE Group MillenniumIT technology for trading, surveillance and post-trade technology is used in the group’s own markets and over 30 other organisations and exchanges around the world.

The LSE Group is headquartered in London and has operations in Italy, France, North America and Sri Lanka. It employs some 2,800 people.

New York Institute of Finance launches Nigerian links

Nigerian stockbrokers are to build their expertise under a working relationship between the New York Institute of Finance (NYIF) and the Chartered Institute of Stockbrokers (CIS) on capacity building, according to this story in Leadership newspaper.
Patrick Fitzgerald, Managing Director/CEO of NYIF visited the Nigerian Stock Exchange and said the two institutes have had several meetings and are close to concluding an agreement.
The NYIF, established 1922 is described as a global learning institute where professionals study, work and exchange ideas and information regarding financial products and also discuss legal and regulatory issues affecting the global financial market. It also produces leadership videos and training and Success television.
Ariyo Olushekun, President of CIS, said talks between CIS and NYIF started in 2009 when Nigeria’s bond market as being reactivated. CIS took 27 stockbrokers to NYIF for fixed-income and alternative-investment training. The relationship has since been revived and he says CIS will be the outpost for NYIF in Nigeria as well as in Africa. He anticipates a memorandum of understanding, which is in progress.

IOSCO global regulator gives bigger role to emerging markets – 80% of its membership

The 86 emerging markets members of the world’s securities markets regulator, International Organization of Securities Commissions (IOSCO) (www.iosco.org), form 80% of IOSCO membership and are increasingly important in the global economy. They have backed the setting up of IOSCO Foundation, to boost funding so IOSCO can scale up research, education and training and technical assistance. IOSCO, the leading international policy forum for securities regulators, is recognized as the global standard setter. The organization’s membership regulates more than 95% of the world’s securities markets in 115 jurisdictions and it continues to expand.
IOSCO’s Emerging Markets Committee (EMC) met on 19-21 Nov in Santiago, Chile, and was reported in this IOSCO news release. It includes the world’s fastest growing economies and 10 members of the important G-20 group of countries. New members are still joining, boosting its role in IOSCO. The Chairman of EMC has a seat on IOSCO’s influential Financial Stability Board.
EMC Chairman Vedat Akgiray of the Capital Markets Board, Turkey said: “Since the distribution of global economic wealth is continuously changing in favour of today’s rapidly growing emerging markets, as the future candidates for being developed economies, ‘proper’ securities regulation in today’s emerging markets is tantamount to ‘proper’ regulation of tomorrow’s developed markets. Therefore, emerging markets within IOSCO and the global financial system are much more important than they were in the past.”
A task force is working on ensuring emerging markets have a stronger voice in IOSCO. According to Akgiray: “A stronger role for the EMC in the future is supported by its members, given its growing importance in the global financial markets and international bodies. The new structure and the functions of the EMC in IOSCO after 2014 will be designed in the coming months, with more importance given to market development and capacity building activities.”
EMC members also debated their perceptions of major emerging risks in their jurisdictions, as part of an IOSCO effort to anticipate systemic risks before they disrupt markets. They warned of spill-over effects from developed economies’ crises, the unintended consequences of some global regulatory reforms as they are applied to emerging markets, sudden capital withdrawals and their impact on liquidity, and the expanding regulatory perimeter. Members highlighted the following as major concerns and challenges, among others:
• Capacity-building, investor education, financial inclusion and literacy to rebuild trust in capital markets;
• Strengthening corporate governance, developing SME financing and corporate bond markets;
• Predominance of bank financing;
• Complex financial products and institutions;
• Risk management and risk-based supervision,
• Development of corporate bond markets

Foundation
IOSCO secretary-general David Wright who started in March (see IOSCO press release) said one of his core priorities was boosting IOSCO’s funding to help aid its work in assisting emerging market regulators with technical advice. He was reported on eFinancial News as saying: “Helping develop emerging markets’ securities markets and ensuring that they are fully on board at a decision-making level is fundamentally important to the global economy.
“As banks become ever more constrained in terms of leverage, and the public sector is starved of cash for years, if not decades, then the securities markets will have to play a much greater role in capital allocation. For that reason, we must have a vision for a truly global securities market, based on the application of rigorous standards.”
The Foundation is to be proposed at the IOSCO Board meeting in March 2013 in Sydney. Paul Muthaura, Acting CEO of the Capital Markets Authority Kenya, said: “The Capital Markets Authority Kenya and indeed the whole East African Securities Regulatory Community warmly welcome the launch of the IOSCO Foundation. This initiative is central to mobilizing the critical resources necessary for capacity building, training exposure and research support that are at the core of supporting emerging markets to converge with international standards of the Foundation.”

MMoU
A key tool of IOSCO is the framework for the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information which enables regulators to exchange information in the case of an investigation, boosting international enforcement and effective global regulation of securities markets. IOSCO members who have not yet signed are encouraged to do so by January 2013. So far 89 IOSCO members have signed and another 30 are invited to be listed in Appendix B, members who are committed to becoming signatories but lack legal authority to comply. Two members of EMC have not applied to sign the MMoU. South Africa, Nigeria and most recently Tanzania are Appendix A signatories in Africa, as reported on this blog in May.
Ranjit Ajit Singh, the Vice Chair of the EMC and Chairman, Securities Commission Malaysia, said: “Our role as securities regulators in emerging markets has become undeniably more challenging as capital markets in emerging economies grow in size and take on a more significant role in financing global economic growth. The Emerging Markets Committee will therefore need to play an increasingly more significant role within IOSCO and the wider regulatory policy framework to contribute to international efforts in regulatory reform and market stability.”

NOTE: Vedat Akgiray, Chairman of IOSCO’s Emerging Markets Committee, Vice Chairman of IOSCO’s board and Chairman of the Capital Markets Board in Turkey will be a speaker on the panel “Capital Market Reforms: Impact of Global Regulations on Emerging Market Economie” next Monday (3 Dec) at the African Stock Exchanges Association conference (ASEA 2012) in Cairo, Egypt. Other speakers are Dr Ashraf El Sharkawy, Chairman of the Egyptian Financial Supervisory Authority (EFSA) and Bob Singletary, PFS Senior Capital Markets Advisor and Principal, Lenzie Fisher Hendry LLC (and I will be moderator). For more details of the conference, look here: http://www.aseaegypt2012.org.

Private Equity Africa – analysis of deals and trends 2011 and looking forward to 2012

Learn from the private equity fund-raising and deal trends of 2011 and look forward to the rest of 2012 with top private equity managers and a leading Africa economist at the Private Equity Africa evening seminar in London on 14 March. Entry deadline of 31 March is also approaching fast for nominations for the Private Equity Africa awards, in association with the Coller Institute of Private Equity at London School of Business.

The PEA seminar will be at 6pm in central London. Speakers and discussions will review deal and fund-raising trends in 2011 including analysis of top deals and will also cover the likely trends and macro-economic outlook for 2012. Topics will include which countries are opening to private equity, regulatory trends, sectors likely to perform in the long-term and which are likely to take over from telecoms as the next big area of business and profits. Also looking at venture and whether investors should be looking at more early-stage deals.
Speakers include

  • Andrew Brown (partner ECP),
  • Yemi Lalude (managing partner Adlevo),
  • Afsane Jetha (director, Duet Africa),
  • David Cowan (Africa economist, Citi),
  • Patrick Deasy (funds partner, SJ Berwin)
  • David Parkes (corporate partner, SJ Berwin).

click here to book.

Registration will close on 31 March for the nominations for awards to celebrate excellence over a decade (2001-2011) of private equity success in Africa. Self-nominations are strongly encouraged. The awards will be done with the Coller Institute for Private Equity at LBS and will cover
The awards are structured to focus on achievements in the market, focusing on best-in-class achievements of investors and advisors in the industry.

Deal-makers will be judged on the strategy, innovation and complexity of the deals, in addition to the structure and the difficulty of the terrain in which the deal was completed.

CATEGORIES

GP Dealmaking
• Large-cap deals
• Mid-cap deals
• SME deals
• Exits
• Impact investment

Regional awards
• North African House
• Francophone House
• South African House
• Sub-Saharan House

Portfolio awards
• ESG excellence
• Turnaround
• Innovation
• Social Impact

Advisor awards
• Corporate finance
• Due diligence & risk
• Legal advisory
• Fund formation & advisory
Email awards@peafrica.com to obtain an entry form.

There will also be a 1 day summit at Thomson Reuters, Canary Wharf, London on 14 June, with the awards to be announced at a gala dinner that evening. For more details check this website. For more click on the awards page here.