Capital Markets

Capital markets channel the surplus savings of individuals, corporations and other organisations to meet the needs of governments and companies for capital investment.

There are three parts to a market:

  • Savings
  • Market Mechanism
  • Borrowers

Too often the mechanisms of the market - stock exchanges, registration, depositary, clearing and settlement – are regarded as the most important element. While it is desirable that these should work well, the impediments to the development of a capital market as a whole lie more commonly in an inadequate supply of suitable investments and inadequate or untrustworthy savings institutions rather than the market mechanism.

Since our early work in the nascent markets of Eastern Europe and the former Soviet Union, where the process of mass privatisation made it necessary to create the whole capital market structure from scratch, Cadogan Financial has appreciated the need to take a holistic approach.

In the East African Community (‘EAC’) Cadogan Financial recently led a team that studied the legal, supervisory and operational framework of the capital market in each member state. Based on our findings we made recommendations on how best the disparate markets of the EAC could be made better integrated in order to create a broader deeper single market.

In Rwanda Cadogan Financial was engaged to lead a team that recommended a legal and regulatory framework for a completely new capital market, taking a common law approach and enabling flexibility, innovation, and conformity with regional integration.

In Moldova Cadogan Financial conducted a comprehensive review of the existing regulatory framework for non-banking financial markets (capital markets, pensions, insurance, investment funds, credit unions) and provided recommendations for its integration and improvement in the context of EU accession and best international practice and norms. We also drafted a new Law on the National Commission of Financial Market, the regulatory body.

In Burundi Cadogan Financial was engaged to create a comprehensive institutional and regulatory framework for a planned new capital market where none had existed before.

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