The Developing markets have felt the financial crisis more acutely than expected, the Emerging Markets Committee of the International Organization of Securities Commissions said Wednesday.

“The current financial crisis has had a greater than expected impact on the members of the Emerging Markets Committee, as financial shocks have been transmitted with ease through the global capital markets. This was due, in part, to the increased integration of emerging markets into the global financial system, combined with regulatory systems that were ill-prepared to tackle increasingly sophisticated international and domestic markets operations,” observed Guillermo Larrain, chairman of the EMC.

Larrain added that its research shows that policy responses by emerging market regulators were similar to those in developed markets. However, the imposition of trading halts were unique to emerging markets regulators. Therefore, an EMC working group will be studying the use of trading halts in the months ahead.

“The survey also showed that priorities have shifted towards improving regulatory approaches and capacities and to improve application, and enforcement, of regulatory frameworks and conduct of business rules. The EMC will gradually address these challenges in its work program for the months and years ahead,” he said.

A report from the committee released Wednesday provides an overview of the experiences of EMC members in responding to the financial crisis, identifies key regulatory and supervisory challenges, and sets out recommendations to address these challenges.

IE