Capital Market Development Services

Specialist Know-how for Governments, Exchanges, CSDs & Clearing Houses

Capital Markets play a pivotal role in fostering economic growth, promoting competition among financing sources, resulting in greater efficiency, furthering privatisation initiatives and in the transmission and implementation of macro-economic policies. To support sustained economic growth increased access to capital is necessary.

Developed Capital Markets have a wide range of valuable macro- as well as micro-economic effects. There is empirical evidence that the development stage of a country’s capital market is interlinked with its development progress as well as economic growth. Capital market policy is therefore a central element of economic growth, poverty reduction, employment, dynamic business development and location policy in particular for countries in transition.

Capital markets provide a variety of valuable services to the economy that are crucial for long-term economic development. The ability to trade securities easily may facilitate investments, promotes the efficient allocation of capital, stimulates long-term economic growth and leads last but not least to increased employment rates and thereby to poverty reduction.

MONERI´s experience clearly demonstrate its focus on capital market and financial sector development. We assist clients in the set-up, regulation and supervision of market places for stocks, bonds, derivatives and commodities. To give you an overview about our capital market development services we have listed some of them below.

Capital Market and Exchange Strategy

  • Road map: Capital Market & Exchange development and growth strategy
  • Capital Market & Exchange benchmarking and peer reviews according to the MONERI i5 Model
  • Development of a Capital Market Initiative in cooperation with relevant Ministries & stakeholders
  • Design, Implementation and Restructuring of Stock, Derivatives, Commodity Exchanges & OTC markets
  • Design and Implementation of Regional Exchange hubs according to the MONERI Meta Exchange & Clearing House Model
  • Design & implementation of International Alliances
  • Demutualisation of Stock Exchanges
  • Review of the Capital Market Infrastructure and Recommendations for Capital Market Development
  • MONERIInternational Exchange Service Centre (IESC) activities – promoting your market in the EU

Trading

  • Securities market segmentation
  • Development of liquidity provision systems
  • Development of incentive schemes for trading members to increase overall market liquidity
  • Review of trading processes and recommendations for improvement
  • Cross-border trading & market harmonization
  • Investor education (self-study handbooks)
  • Design of member packages to attract new [remote] trading members
  • Design/Implementation of a remote membership strategy
  • Design and management of “tradeable” Indices
  • Acquisition of remote members

Clearing & Settlement

  • Roadmap: Clearing House and Central Counterparty development and growth strategy
  • Design & implementation of Central Securities Depositories & Clearing Houses
  • Design & implementation of Regional Clearing Hubs
  • Regional benchmark review of CSDs & CCPs
  • Design/Implementation of Central Counterparties
  • Identification of and connection to international reliable CSDs, clearing and settlement institutions
  • Design of clearing structure (e.g. clearing members)
  • Review of clearing and settlement processes as well as IT systems
  • Design of guarantee funds
  • Risk management advise

Legal & Regulatory Issues

  • Review/Gap Analysis of regulatory framework and recommendations for improvement
  • Review of trading, listing and clearing rules
  • Development of Corporate Governance Codes and systems
  • Recommendations for cross-border trading
  • Preparation of Exchange Rules
  • Preparation of CSD & CCP rules
  • Review of market surveillance systems and activities
  • Preparation of market surveillance manuals
  • Assistance in drafting capital market regulation

Exchange Commercialisation

  • Analysis of commercial activities, revenue streams and organisational structure
  • Commercial benchmarking
  • Peer-to-peer Review
  • Identification of improvement levers
  • Review of transaction based fees
  • Improvement of existing commercial services
  • Development of value added commercial services
  • Design & pricing of data vending products

Exchange Management & Operation

  • Strategic planning
  • Institutional capacity building and training
  • Analysis of organisational structure and identification of improvement levers
  • Restructuring, streamlining & change management
  • Review of work-flow processes
  • Project management
  • Interim management

Exchange Information Technology

  • Definition of the Exchange’s IT strategy
  • Review of existing IT infrastructure and gap analysis
  • Analysis of trading systems
  • Analysis of Back-office systems
  • Preparation of functional specifications
  • Preparation of “Requests for Proposal”
  • Tender evaluations for trading, CSD, clearing & surveillance systems

Product Development for Exchanges

  • Review of the current product line and identification of improvement levers
  • Development of new exchange traded products
  • Design of derivative/structured product markets
  • Index design and development
  • Development of information products to increase transparency
  • Development of business diversification strategy

Business Development, Marketing and Training

  • Preparation of Business Development Strategy
  • Development of marketing plans
  • Identification of potential international remote members
  • Definition of [Remote] Membership sales activities
  • Design of public awareness activities to restore investor confidence and increase market liquidity
  • Design of support services for listed companies (e.g. investor relation activities, road shows…)
  • Design and Implementation of Exchange Training Centres
  • Manual “How Companies can raise Capital”
  • Manual “How Financial Intermediaries can improve client services”
  • Manual “How to invest” for private investors
  • Self-study handbooks (e.g. Stock Trading, Futures & Options, Fundamental Analysis…)
  • Skill development for exchange personnel and key capital market participants
  • Design of training programmes and examinations