The SC's participation in the Task Force is in recognition of its continuing contribution to IOSCO's work on securities clearing and settlement systems, and is the only emerging market securities regulator on the Task Force. In a previous joint initiative between IOSCO and CPSS, the SC was also the only emerging market securities regulator invited to be a member of the Task Force on Securities Borrowing and Lending, which produced the report entitled Securities Lending Transactions: Market Development and Implications, in July 1999.

The latest IOSCO-CPSS Task Force will issue recommendations for the design, operation and oversight of securities settlement systems, covering both individual systems and the cross-border linkages between them. It will also promote the implementation of measures that can reduce risks, increase efficiency and provide adequate safeguards for investors.

With the rapid growth in the volume of cross border securities transactions, many trading systems are in a process of international integration or providing direct access on a cross border basis to market participants.

Settlement systems have much significance in facilitating the minimisation of risks for the clearance and settlement of securities transactions, and thereby enhancing the stability of the domestic and international financial system. Given this, the SC believes that the work of the Task Force will be instrumental in developing recommendations that can aid securities markets and regulators in designing and operating settlement systems that will enhance international financial stability.

The SC's participation in the Task Force also seeks to ensure that the views of emerging market countries are reflected in the formulation of international standards and principles governing international capital markets. The SC will also be consulting with domestic market institutions and other relevant market participants as part of its input to the work of the Task Force.

In initiating its work, the Task Force held a "Consultative Meeting on Securities Settlement Systems" at the Bank for International Settlements in Basle on January 19, 2000. The meeting in Basle was held to ensure that central banks and securities regulators have an early opportunity to express views on existing settlement arrangements and standards for securities settlement systems.

The SC has been a member of IOSCO since 1993. It was elected to the Chair of the Emerging Markets Committee (EMC) from 1996 to 1999. It currently heads the EMC Working Group on the Regulation of Secondary Markets. IOSCO currently has 94 ordinary members made up of national securities regulators, of which 68 are from the emerging markets.