Emerging Markets ESG Monitor – Friday, October 14, 2011

This week, in lieu of an expert interview, “Five Questions about SRI,” Emerging Markets ESG publishes Emerging Markets ESG Monitor, nforming you about two important events that occurred this week in emerging markets.

BRICS Stock Exchanges Announce Alliance

Johannesburg, South Africa – On Wednesday,October 12, 2011 four emerging market stock exchanges announced an alliance that simultaneously marks a major step in emerging market integration and a significant move towards decoupling from Western markets.  BM&FBOVESPA (Brazil), Hong Kong Exchanges and Clearing Limited – HKEx (China), MICEX (currently merging with RTS Stock Exchange, Russia) and Johannesburg Stock Exchange (South Africa) presented the initiative at the 51st Annual General Meeting  of the World Federation of Exchanges (WFE).  The National Stock Exchange of India (NSE) and the BSE Ltd (India) have signed letters of support; they plan to join the alliance after finalizing certain issues.

In the first phase, the exchanges will begin cross-listing of financial derivatives on their benchmark equity indices.  Cross-listed products are planned later, in June 2012.

“This is an important milestone in the history of developing countries,” said Ronald Arculli, Chairman of HKEx and of the WFE. “Thanks to this alliance, investors will gain easier access to major equity index derivatives.  The alliance enables more investors to gain exposure to the emerging economies of the BRICS group whose economic power is on the rise. From a global perspective this alliance highlights the growing significance of the BRICS economies and financial markets for the coming decade, and further underlines the importance of enhancing cooperation between the BRICS members.”

For more information, read the full press release on the WFE website.

Serbia Moves toward European Union (EU) Accession

Belgrade, Serbia – On Wednesday, October 12, 2011 European Union (EU) Enlargement Commissioner Stefan Fule announced that the European
Commission recommended granting Serbia EU candidate status.  The date of the beginning of the accession negotiations will be decided later.
Serbian Prime Minister Mirko Cvetkovic said that “the opinion of the European Commission (EC) on Serbia’s candidacy for membership in the EU recognises the efforts Serbia has made on its European path and the results it achieved in reforms.”  For more information, visit the official website of the Serbian government.