Thus there is an urgent need to hasten the construction of the intellectual and institutional infrastructure that will further ensure the proper functioning of these financial innovations. Prof. Victor S. Limlingan presents the case for asset-backed securities as a source of funds for Philippine housing projects, and possibly for other projects as well. Notwithstanding the similarity in the operational regulatory requirements for stock brokerages in these countries, there seems to be a substantial difference in the rigidity of the application of these rules. Cultural norms are among the obstacles to the proper implementation of management control systems. The recent financial crisis emphasized the need for large corporations to reduce their vulnerability to economic shocks.
Derivatives exchanges can provide the links between cash markets, hedgers and speculators.
They facilitate the transfer of risk among economic agents by offering mechanisms for liquidity and price discovery. But derivatives are also often identified with the speculative trading that results in colossal gains or losses. The self-regulation of a derivatives exchange necessitates the acceleration of transparency and improvement of monitoring, control and enforcement functions. Regulators and stock exchanges must review their role in establishing sound corporate governance to safeguard against business failures. While governance is a concept applied primarily to corporations, the increasing gap between the need and the funding for development projects necessitates that each dollar is placed where it is needed most.