William J. Brodsky, the newly-appointed chairman of the World Federation of Exchanges (WFE), asserted that the global financial markets are at a “critical juncture” in their evolution, as the federation laid out three priorities for 2009.
Appointed on 1 January, Brodsky, chairman and CEO of the Chicago Board Options Exchange, is the first WFE chair from a derivatives exchange.
The WFE listed its first priority as helping the International Organisation of Securities Commissions (IOSCO) establish best practices for short selling and securities lending. In addition, the WFE said it would clarify the use of circuit breakers in volatile markets as predictable and temporary tools. Thirdly, the federation intends to study the effects of fragmentation on market quality.
Brodsky said the WFE, an organisation of 51 regulated exchanges, is making its resources available for the world’s policy makers and regulators during a period of global economic stress.
”We are at a critical juncture in the evolution of our global markets, and WFE is well positioned to share knowledge of exchanges with international governing bodies,” said Brodsky.
“Our overriding goal is to examine what has and has not worked in the midst of recent market turmoil.
Despite unprecedented volatility, our member exchanges have fulfilled their roles as transparent marketplaces, disseminating prices for the essential functions of capital formation and risk management.
We believe our collective experience and knowledge can be a valuable resource as global policy makers and regulators grapple with the difficult challenges ahead.”
Brodsky heads the new board, along with vice chairman Paul Chow of the Hong Kong Exchanges and Clearing and Huseyin Erkan of the Istanbul Stock Exchange, chairman of the WFE working committee. Erkan and Maged Shawky of the Egyptian Exchange are new to the 2009 board of directors.