Confidence in the Ghana Stock Exchange from both investors and issuers has further received a major boost as the market attained full membership status with the World Federation of Exchanges (WFE). WFE is the leading industry group for exchanges and clearing houses (CCPs) across the globe, and is widely considered the gold standard for best practices in regulated securities and derivatives markets – representing more than 250 market infrastructures across well-established and frontier markets. The umbrella-body comprises some 59,400 listed companies with a cumulative market capitalisation in excess of US$122.94trillion at the close of 2021. Describing the best practices which WFE brings to the table in an exclusive interview with the B&FT, the Exchanges’ Managing Director, Ekow Afedzie, said the comprehensive scope of assessment and subsequent adherence to best practices by WFE members offers assurance to the exchanges themselves, and stakeholders who interact with them, of their commitment to the highest standards of fiduciary responsibility. “Becoming a full member does not mean we are perfect, but means that the highest possible standards are being applied. Not only is what we are doing good enough for Ghana, but it shows that what we are doing also meets the minimum global best practices – and that is a very high standard in running a stock market,” the GSE’s MD stated. Consequently, investors and issuers can rest assured that their positions will not be compromised, as beyond the national regulator there is a higher authority to appeal to. Chronicling the GSE’s journey, Mr. Afedzie said it is the culmination of years of hard work and bears testimony to the quality of products and procedures available at the Accra bourse. “This is another milestone chalked up by the Exchange following our formal affiliation in January 2020. Becoming a full member of the WFE is a testament of our commitment to adhering to the highest international standards and best practices which are embodied in the WFE,” he said of the umbrella-body. The GSE’s position at the WFE will ensure wider benefits – including capitalising on the depth of research, networking and technology available at the Federation. “We will have access to helpful materials; and if you want to mark yourself against the best, you will have to measure yourself against what they have. And you can only do that when you know what they have, then you can strive to measure where you are. It is an all-round package,” Deputy MD, Abena Amoah added – noting that it will not be one-way traffic as the GSE has much to teach its peers. “There is a lot of interest in how we set up our fixed income market with friends from Morroco, Uganda and other markets who are all very eager to learn, so we also have things to teach them; the models that worked and things like that,” she explained. The GSE’s managers reiterated the Exchange’s focus on positioning itself for the medium-term, when the current economic downturn passes, as it focuses on a variety of products, sustainability and education. Assessment Mr. Afedzie further explained that the development came after a series of rigorous assessments of the GSE’s application – as captured in its candidacy paper – as well as a comprehensive evaluation of factors such as the wider economy, the nation’s financial sector, capital market and operations of the stock exchange. Other factors considered included the financial standing of GSE, ease of market access, listing admission, details about trading, risk assessment, AML/CTF, investigating abnormal trading and the economy, and the variety of listings. The assessment process also saw a team from the Federation interact with key stakeholders from the Ministry of Finance, Securities and Exchange Commission (SEC), Bank of Ghana (BoG), Central Securities Depository (CSD) as well as some brokers and issuers. In addition to its membership of the WFE, the GSE is also a member of the International Capital Markets Associations, and equally has running MoUs with various exchanges in order to achieve its goals. Founded in 1961, the Federation has maintained its mandate of contributing to the development, support and promotion of organised and regulated securities markets in order to meet the needs of the world’s capital markets in the best interests of their users. Currently, 37 percent of its members can be found across the Asia-Pacific region, 43 percent in Europe, Middle East and Africa, with 20 percent in the Americas.