The role of self-regulatory organisations (SROs) in developing effective securities markets in Commonwealth of Independe
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Volume 4 Number 2
The role of self-regulatory organisations (SROs) in developing effective securities markets in Commonwealth of Independent States (CIS) countries Manon Aliev and Dmitry Surmilo 116 East Broad Street, Falls Church, VA 22046, USA tel: +1 703 531-0167; fax: +1 703 237-9326; e-mail: [email protected]
Manon Aliev is Vice-President of the Association of Banking Institutions of CIS Countries and Director of the MBA programme and Assistant Dean at the Academy of State and Municipal Construction under the President of the Republic of Uzbekistan. Dmitry Surmilo is a securities expert and investment consultant.
Journal of International Banking Regulation, Vol. 4, No. 2, 2002, pp. 162–166 # Henry Stewart Publications, 1358–1988
Page 162
ABSTRACT Securities market development in the Commonwealth of Independent States (CIS) countries has shown that the successful regulation of diverse and sophisticated relationships between market participants cannot be effective without the timely formation of flexible mechanisms for controlling and regulating the participants’ activities at all levels of the stock market industry. Because of its reactive nature, the securities market cannot be regulated via traditional methods, for example the banking system. As a result, it is necessary to use different approaches to creating effective regulatory mechanisms. One method is the use of self-regulation. Selfregulatory organisations (SROs) are created by professional securities market participants with the aim of developing and controlling professional ethics standards, protecting the interests of the shareholders and other participants in the stock market industry, establishing rules and
standards on dealing securities, maintaining the balance of interests among securities market participants, and ensuring a stable level of trust and interest between investors and issuers. INTRODUCTION Securities markets are an integral part of the modern market economy, facilitating linkages between investors who have disposable financial resources and issuers with attractive investment projects that need financing. Each party requires effective regulation of the activities concerned with issuing, circulating and servicing the securities. Securities market development in CIS countries has shown that successful regulation of the diverse and sophisticated relationships between market participants cannot be effective without the timely formation of flexible mechanisms for controlling and regulating the participants’ activities at all levels of the stock market industry. Current government approaches to national market development, along with interaction between the banks, stock exchanges and investment institutions delegated to ensure the stable and dynamic growth of a national securities market, all affect the pace and the quality of performance of the above-mentioned mechanisms. The timely formation and testing of
Aliev and Surmilo
effective mechanisms for securities market regulation will increase the stability of national securities m
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