OECD-ADBI 10th Roundtable on Capital Market Reform in Asia
Agenda

Registration

Opening remarks

Robert Ley, OECD
Masahiro Kawai, ADBI
Andrew Sheng

Session 1: Global Financial Crisis: Causes, impacts, policy responses, latest developments & trends

The Global Financial Crisis has now hit Asia, which has taken significant efforts to strengthen financial systems and develop capital markets with a view to making the economy more resilient to shocks. Now that the financial crisis has hit the real sector, what can be done to further reform capital markets in Asia?

This session will review the development of the current world financial market turmoil and policy responses to date, including the lessons Asian countries can learn from the on-going market turmoil.

Moderator: Andrew Sheng

1.1. US perspectives
Michael Johnson, FRBSF, US

1.2. EU perspectives
Filippo di Mauro, ECB

• Presentation: Global spillovers on the Euro area[ PDF 167.3KB | 19 pages ]

1.3. Japan's perspectives
Takehiko Nakao, MOF, Japan

1.4. OECD perspectives
Stephen Lumpkin, OECD

• Presentation: The global financial crisis: Causes impacts & policy responses[ PDF 602.9KB | 10 pages ]

Coffee Break

Discussants: Chaw Min Chen, MOF, Malaysia and Akira Ariyoshi, IMF
Open Discussion

• Presentation: Global Financial Crisis: Causes, impacts, policy responses, latest developments and trends[ PDF 41.9KB | 11 pages ]

Lunch

Session 2: Impact of the Global Financial Crisis on Asia & the Asian Response

This session will discuss the implications of the global financial crisis for the Asian markets and the main policy challenges to be addressed to prevent, or minimize the impacts of, regularly occurring international financial market turbulence. What are the appropriate responses from Asia to this crisis? To what extent can regional financial cooperation ameliorate some of the effects? Should Asia accelerate financial integration as a response? What should Asia recommend for changes to Global Financial Architecture?

Discussion will also be extended to issues on regional regulatory harmonization in the context of market integration.

Moderator: Junichi Maruyama, FSA, Japan

2.1. Understanding the risks and impacts of unregulated financial products and derivatives, such as Hedge Funds (HF), Private Equity (PE) and Credit Default Swaps (CDS)
Hung Tran, IIF

• Presentation: Unregulated Financial Products: Potential, Risk and Regulatory Reform[ PDF 132.9KB | 19 pages ]

2.2. Promoting stability through regional financial cooperation
Masahiro Kawai & Mario Lamberte, ADBI

• Presentation: Impacts, Responses and Policy Recommendations for Asia Asia's Collective Action[ PDF 446.3KB | 45 pages ]

2.3. Future strategies for regional financial development
Noritaka Akamatsu, WB

• Presentation: Future strategies for regional financial development[ PDF 90.4KB | 14 pages ]

Discussants: Masashi Nagaosa, MOF, Japan and Jianglong Du, MOF, China
Open Discussion

Coffee Break

Session 3: Implications of Current Market Turmoil

Session 3.1: Stock and Bond Markets

What are the implications of the current crisis on the structure of the financial system, particularly on the stock and bond markets? This session focuses on an overview of how the global financial markets will evolve and the implications for financial market development.

This session will also look at how current financial structure meet or do not meet the needs of the real sector and to what extent financial integration will assist that need.

Moderator: Mario Lamberte, ADBI

3.1.1. Impact of current market turmoil
Simon Ogus, DSGAsia, Hong Kong

• Presentation: The impact of the current global turmoil on Asian stock, bond and foreign exchange markets[ PDF 514KB | 8 pages ]

3.1.2. Measures taken by supervisors or regulators, such as short selling restrictions
Keith Lui, HKSFC

• Presentation: Measures taken by supervisors or regulators – short selling restrictions[ PDF 483.9KB | 14 pages ]

3.1.3. ASEAN prospects on the direction of capital market integration
Tan Wai Kuen, Malaysia

• Presentation: ASEAN Prospects for Capital Market Integration[ PDF 3.8MB | 25 pages ]

• Presentation: Stock and Bond Markets[ PDF 57.6KB | 4 pages ]
• Presentation: Proposed Credit Guarantee and Investment Mechanism[ PDF 75.4KB | 18 pages ]
• Presentation: Growth Equity Markets in Financial Turmoil[ PDF 257.7KB | 13 pages ]

Session 3.2: Unregulated Entities, Products and Markets

The excess leverages caused by unregulated entities, products and over-the-counter markets have led to some of the problems that caused the current financial crisis. To what extent should financial innovation and new financial institutions be regulated? What are the real issues regarding the regulation of products and investors? Will improvements in transparency, self regulation in the form of Codes of Conduct and centralized counter-parties or clearing and settlement arrangements suffice?

This session will discuss on-going efforts and challenges to monitor and manage the risks from financial innovation and unregulated activities, drawing upon experience from international standard setters and market regulators.

Moderator: Stephen Lumpkin, OECD

3.2.1. Understanding the risks and impacts of unregulated financial products and derivatives, such as Hedge Funds (HF), Private Equity (PE) and Credit Default Swaps (CDS)
Andrew Sheng

• Presentation: Impact of the Global Financial on Asia and the Asian Response[ PDF 198.5KB | 38 pages ]

3.2.2. Standardization or convergence of international best practices
Paul Koster, DFSA, UAE

3.2.3. Regulatory framework for HF and PE
Philip Wooldridge, BIS

• Presentation: Regulatory framework for hedge funds and private equity[ PDF 298.4KB | 12 pages ]

Discussants: Takeshi Hirano, TSE, Japan and Yoshihiro Watanabe, IIMA, Japan
Open Discussion

• Presentation: Pursuing the Development of a Central Clearing Infrastructure for CDS[ PDF 183KB | 12 pages ]

Coffee Break

Session 4: Financial Education and Awareness

Financial education and awareness are key components of financial consumer protection. The recent financial crisis has raised the importance of financial education and awareness and also due diligence on the part of financial institutions in terms of selling of risky or complex financial products. At the same time as governments re-define financial market regulatory frameworks and strive at restoring confidence in the financial structures, strategies to enhance consumers' level of financial literacy will be critical determinants of market effectiveness going forward.

This session will look at recent work in this area.

Moderator: Worapot Manupipatpong, ADBI

4.1. OECD perspectives
Bruno Levesque, OECD

• Presentation: Financial education and awareness[ PDF 769.7KB | 25 pages ]

4.2. Asia perspectives
Pungky P. Wibowo, Bank Indonesia

• Presentation: Financial Education & Awareness: Indonesia Experience[ PDF 367.6K | 14 pages ]

4.3. US perspectives
Dana Roy Green, FRBSF, US

Discussants: Takeshi Kurihara, FSA, Japan and Zhang Xiaochuan, CSRC
Open Discussion

Lunch

Session 5: Regulatory Efficiency and Effectiveness

What are the likely changes in the Regulatory Framework post Crisis? What are the likely changes to the structure of the financial system, after the defects of the “Originate to Distribute” Model and the demise of old investment banking model? What are the likely changes to regulatory standards by IOSCO, Basle Committee, IASB and FSF approaches? Should we avoid pro-cyclical policies and how should we address the failings of the current regulatory framework? To what extent can Asia identify the right reforms and implement them?

This session will discuss how to ensure effectiveness and efficiency of regulations, including possible mechanisms for strengthening the regulatory framework.

Moderator: Michael Johnson, FRBSF, US

5.1. OECD perspectives
Stephen Lumpkin, OECD

• Presentation: Policy Framework for Effective & Efficient Financial Regulation[ PDF 533.2KB | 15 pages ]

5.2. Asia perspectives
Edmond Lau, HKMA

• Presentation: Regulatory Efficiency and Effectiveness Asia perspectives[ PDF 335.7KB | 15 pages ]

5.3. US perspectives
Dana Roy Green, FRBSF, US

Discussants: Vachira Arromdee, BOT and Mary Jane T. Chiong, BSP
Open Discussion

Coffee Break

Session 6: Corporate Governance

The current global financial crisis can be to an important extent attributed to failures and weaknesses in corporate governance arrangements: lack of robust risk management, weakness in board composition and competence, and remuneration systems. Most Asian jurisdictions have substantially revamped their laws, regulations and other norms. A number of challenges, however, are still to be addressed. Further enhancement of implementation and enforcement may be one and improved monitoring and disclosure of related party transactions may be another.

This session will discuss Asian corporate governance landscape with on-going efforts, the implication of the current global financial crisis and challenges to take a leading role on the enhancement of corporate governance in the post-global financial crisis.

Moderator: Fe Barin, SEC, Philippines

6.1. OECD perspectives
Fianna Jesover, OECD

• Presentation: Corporate governance aspects of the crisis: OECD's experience[ PDF 250.5KB | 29 pages ]

6.2. Asia perspectives
Zhang Xiaochuan, CSRC

• Presentation: An Introduction to the Corporate Governance Development in China[ PDF 110KB | 14 pages ]

6.3. Private sector's perspectives
Yuji Kage, Pension Fund Association, Japan

• Presentation: Corporate Governance Agenda At the time of Global Financial Crisis[ PDF 76.7KB | 7 pages ]

Discussants: Pungky P. Wibowo, Bank Indonesia and Motoyuki Yufu, FSA, Japan
Open Discussion

• Presentation: Good Corporate Governance Implementation by Commercial Bank[ PDF 153.1KB | 11 pages ]

Closing Remarks