Asia

CURRENT PROJECTS

Financial Technologies (India) Ltd. and Multi Commodity Exchange of India Ltd.
FMI has been retained by Financial Technologies (India) Ltd. (FTIL) and Multi Commodity Exchange of India Ltd. (MCX) to assist in development and expansion operations. FTIL, flagship company of Financial Technologies Group, is a US $3.2 billion company and a global leader in providing technology solutions and domain expertise for digital transactions and financial markets across all asset classes including equity, commodities, currency, and debt. FTIL has successfully created strong and innovative brands of intellectual property centric products and services for global financial markets and trading communities delivering real, measurable value for its customers and stakeholders. MCX, an FTIL venture, is the leading Indian commodity futures exchange, with 72% market share. Other FTIL ventures include: Dubai Gold and Commodities Exchange (DGCX); IBS Forex Limited, National Spot Exchange Limited (NSEL); Safal National Exchange (SNX); Mauritius Global Board of Trade (GBOT); National Bulk Handling Corporation Limited (NBHC); Tickerplant Infovending Limited; Atom Technologies Limited; Riskraft Consulting Limited; and Financial Technologies Middle East (FTME).

For information on FTIL, go to www.ftindia.com, and for information on MCX, go to www.mcxindia.com.

PAST PROJECTS

India Commodity Futures Markets Project
For USAID, FMI is working to strengthen the regulation and supervision framework for commodity futures markets in India. The project will assist the Forward Markets Commission (FMC) and leading Indian exchanges in developing the legal, policy, regulatory, and operational environment necessary for promoting a vibrant and safe commodity futures market in India. The project will focus on two tasks in its first year: the legal and institutional strengthening of regulation, surveillance, and enforcement in the commodity futures markets; and the development of institutional infrastructure for an efficient commodity futures market. In the second and third option years, the project will initiate knowledge development and broaden the understanding of the benefits of risk management and price discovery of futures markets for the Indian agricultural sector. FMI will rely on an exceptional team of expatriate and Indian specialists to provide the technical assistance and training necessary to successfully implement these tasks. Period of Performance: 2006-2009.

India Commodity Futures Markets Development Project
For USAID, FMI conducted an assessment of the Indian commodity futures markets and recommended steps to further develop the contribution of these markets to growth in the agricultural sector. Key tasks included assessing the institutional strengths and weaknesses of the futures markets’ regulator; designing a 4-year work plan for further development of the markets; implementing a short-term stakeholder awareness campaign; and conducting two training programs for Government of India regulators and senior commodity exchange staff. FMI also organized two U.S. study tours for senior Indian delegations. Period of Performance: 2004

Philippines Micro-enterprise Development
For USAID, FMI performed an assessment of the Micro-enterprise Access to Banking Services in Mindanao (MABS-M) project in order to measure project progress and provide recommendations for strengthening the program. FMI's consultants assessed the current legal/regulatory environment, macroeconomic conditions, and credit market dynamics and evaluated the incorporation of micro-enterprise lending by participating banks and borrowers. FMI's consultants determined whether micro-finance best practices were used by participating banks in managing their micro-finance programs and if the program is expandable to non-participating banks and institutions in Mindanao. Period of Performance: 2000.

Mongolia Bank Restructuring Project
For the ADB, FMI served as Senior Banking Consultant to restructure and resolve three conservatorship banks and provide bank supervisory advice to the Bank of Mongolia. FMI worked closely with Bank of Mongolia to help develop a restructured and viable banking system by providing advisory support to develop, and facilitate banking system reforms, and in particular, bank restructuring activities. FMI provided recommendations to the BOM on streamlining its operations and facilitating the sale, merger and/or liquidation of troubled banks. Period of Performance: 1999-2000

Asian Bank Advisory Project
FMI served as Senior Banking Consultant to the ADB to identify opportunities for the Bank to undertake both broad based and focused financial sector studies in the banking area in the crisis-affected countries in the region. FMI assisted Bank staff in preparing for policy negotiations with government and non-government agencies concerning banking sector issues and adjustment operations. FMI assisted ADB-member countries in designing and implementing banking sector reform measures, advising banks on better asset-liability management and credit evaluation procedures, and developing a set of monitoring indicators to assess performance of the banking sector. FMI also analyzed the feasibility of securitizing the assets of commercial banks and non-bank financial institutions to promote secondary markets. Period of Performance: 1999-2000

China Asset Management and Bank Reform
For the ADB in Beijing, FMI assisted with an assessment of the Cinda Asset Management Corporation (CAMC) to provide recommendations on ways to strengthen the organizational structure and institutional capabilities of CAMC and other asset management companies in China. FMI’s senior banking consultant reviewed the structure of CAMC and worked with the ADB staff to develop strategies for resolving CAMC’s non-performing loan acquisition and operations. FMI recommended appropriate reform measures to facilitate and introduce asset-backed securities as a means to utilize capital markets for NPL resolution. FMI assisted the ADB in developing project goals for long-term assistance to CAMC including reform of its accounting system, improving audit procedures, and designing a state of the art MIS system for asset management functions. Period of Performance: 1999-2000

Thailand Insurance Reform
For the ADB, FMI responded to the financial crisis in Thailand and conducted an emergency review of pension and provident funds and the insurance industry. FMI identified existing policy, regulatory, and operational constraints on pension and insurance reform development, and proposed reform measures. FMI also evaluated the potential for introducing a social security system in Thailand. Period of Performance: 1997

Kazakhstan Pension Institutional and Regulatory Reform
For the ADB, FMI conducted an evaluation of proposed pension reforms, including the feasibility of introducing a non-state pension system on an expedited basis, and reviewed the implementation of the institutional and regulatory framework required for successful transition of such reforms. FMI then assisted the Ministry of Labor and Social Protection, the State Pension Payments Center, and the National Securities Commission in drafting the detailed regulatory frameworks for development of pension contract formats, fiduciary standards, actuarial standards, reporting and disclosure requirements, auditing standards, and mechanisms for transferring assets among funds. FMI also developed a public education component to educate the employees/pensioners about the newly restructured pension system. Period of Performance: 1997

Kazakhstan Pension Management Information System Reform
For the ADB, FMI reviewed the Management Information System (MIS) of the Kazakhstan pension system and recommended improvements to it. FMI reviewed the MIS plan of the new State Pension Payment Center (SPPC) and made recommendations on ways to modernize the Government’s information database and assist in the transition to a defined contribution pension system. FMI also provided recommendations for linking the pension contribution compliance with the general tax collection compliance and determined ways of increasing the effectiveness of sanctions for non-compliance. Period of Performance: 1997

Kazakhstan Capital Markets/Pension Asset Channeling Project
For the ADB, FMI reviewed and assessed the securities market in Kazakhstan and identified appropriate channels for pension fund investments. FMI reviewed all legislation on pension reform with particular reference to the regulation of investment activities of pension funds and provided advice to the Government on the procedures and mechanisms for the issuance of government securities. FMI analyzed the approach and procedures for the successful participation of pension fund managers in the securities market and prepared a comprehensive report to the GOK on the institutional and policy aspects of securities markets and pension funds. Period of Performance: 1996-1997

Kazakhstan Non-Bank Financial Institutions
For the ADB, FMI assisted the National Bank of Kazakhstan in developing non-bank financial institutions (NBFIs) and draft regulations on NBFI activities, including pension reform, private pension fund creation, insurance industry development, and bank insulation. The project activities encompassed policy reform and strategy development, financial analysis, conference planning and training, and legislative drafting. One outcome of the project was an education initiative on pension reform for Government of Kazakhstan Cabinet members and Parliament, leading to passage of pension reform legislation. Period of Performance: 1996-1997

Kazakhstan and Kyrgyzstan Broker-Dealer and Investment Fund Development
For USAID, FMI implemented a project addressing the nascent broker-dealer and investment fund requirements of both Kazakhstan and Kyrgyzstan, with special emphasis on training and institutional self-sufficiency. The project also focused on investment banking and capital formation activities. Period of Performance: 1996-1997.

Kazakhstan Securities Market Development
FMI assisted securities market development as advisors to the Securities Commission. Activities included design of the legal and regulatory framework for a Securities Commission, implementation of the required training for regulators and market participants, development of a capital markets monitoring unit for the Government, and assistance in the formation of a trade association to engage in market self-regulation, enforcement, and information dissemination. FMI drafted the Law on Securities and Stock Exchanges and the Law on Investment Companies. Period of Performance: 1994-1995

Options Clearing Corporation and Stratus Computers (Korea)
The Options Clearing Corporation is the largest clearing and settlement organization in the world for securities options products. Stratus Computer is the leading continuous processing computer manufacturer providing computers for securities exchanges throughout the world. On their behalf, FMI outlined the management consulting and training areas critical to the efficient functioning of a futures exchange, including exchange rules, governance, management, and regulation; systems to ensure financial and trading integrity; design and marketing of commodities contracts; and education and training for regulators, exchange participants, and end-users of exchange-traded instruments. Period of Performance: 1994-1995

Kyrgyzstan Corporate Governance
FMI developed a corporate governance program as a critical element in the Government of Kyrgyzstan's privatization program. FMI provided technical assistance to both private companies and the government in developing corporate governance programs, carried out extensive training and education programs (e.g., share registration, corporate reporting, and shareholder rights), drafted a new Joint Stock Company Law, prepared Corporate Governance and Annual Shareholder Meeting training manuals, and implemented a share registration pilot project. Period of Performance: 1994-1995.