CEO Letter - April 2020

Dear Colleagues,

Welcome to the April issue of Focus.

This month we turn over the magazine to the outstanding work our member exchanges and CCPs are doing in the fight against Covid-19, from implementing stringent business continuity plans, to supporting access to capital, and waiving listing fees.

We are proud to feature contributions from nine members:

• Timothy Hogben, Chief Operating Officer, ASX takes us through the business continuity plans that the ASX has enacted during the Covid-19 crisis;
• Ed Tilly, Chairman, President & Chief Executive Officer, Cboe Global Markets outlines the ways in which the firm is responding to Covid-19, by working with its customers, regulators, and communities;
• Tim Cuddihy, Managing Director, Financial and Operational Risk Management, DTCC, who speaks on the role that DTCC plays in safeguarding the markets and how it manages risk, each and every day;
• Julie Becker, Deputy CEO of the Luxembourg Stock Exchange and Founder of the Luxembourg Green Exchange on how the exchange is offering free listing for Covid-19 response bonds;
• Nasdaq's President of North American markets, Tal Cohen and President of European Markets, Bjørn Sibbern discuss their view on the current state of markets in North America and Europe, and some of the actions that Nasdaq is taking to ensure that markets keep operating, its members and listed companies remain supported throughout these unprecedented times;
• Oscar N. Onyema, OON, Chief Executive Officer, The Nigerian Stock Exchange looks at the significant steps the exchange has taken to preserve the health and safety of stakeholders and ensure that there are no disruptions to operations;
• Hamish Macdonald, Head of External Relations & General Counsel, NZX outlines the various ways in which the exchange is responding to Covid-19, and supporting access to capital for NZX firms;
• Pakorn Peetathawatchai, President, The Stock Exchange of Thailand (SET) writes about the role of the exchange in fighting Covid-19, to ensure market stability, to support the industry, and to protect the welfare of its staff;
• And finally, the Shenzhen Stock Exchange has contributed an article about the strong and effective measures it has taken to support the market, improve services and facilitate business processes during Covid-19.

We thank these contributors, and each and every one of our members and affiliates for the tireless work they are doing to keep markets open, and staff and stakeholders safe.

We are continuing to facilitate the exchange of Covid-19 business continuity best practice on our dedicated webpage, which brings together exchange and CCP efforts to keep operating resilient markets in the midst of the crisis. Please continue to send new initiatives and actions you are taking in regard to Covid-19, so we can keep the website updated. You can do this by sending your updates to [email protected]

The WFE family was shocked and saddened to hear the news of the passing of Jaime Ruiz Sacristán, Chairman, Bolsa Mexicana de Valores, from a Covid-19 related illness. He was a great leader and friend, and our industry will keenly feel his loss. We welcome a tribute to him from his friend and colleague, José-Oriol Bosch Par, Chief Executive Officer, Bolsa Mexicana de Valores.

The WFE has published a paper that reviews the academic literature on short-selling and short-selling bans, comparing the arguments against banning short-selling with the arguments in favour, and concludes that the academic evidence almost unanimously points towards short-selling bans being disruptive for the orderly functioning of markets. Based on the existing evidence, the WFE recommends that financial regulators do not introduce short-selling bans, as the academic literature demonstrates not only their lack of effectiveness, but their negative impact on market quality.

Thank you for reading this month's issue.

Nandini Sukumar
Chief Executive Officer
The WFE