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Institutional investors are playing an increasingly important role in the world's financial markets. Highly specialized and managing substantial capital, they can enhance market features in many ways, including increasing liquidity, influencing market psychology, improving disclosures and corporate governance. Institutional investors can also leverage their size to negotiate better services at lower cost.   In recent years, while the institutional investor base in some EMs has enjoyed healthy growth, other EM institutional investors still lack scale and influence. The purpose of this document is to provide EM regulators and policy makers with the following information:  Overview of the underlying macro environments; Current status of development and overview of regulations; Cross border activities and regulatory restrictions; Issues and challenges for development and regulation; and Key recommendations to help EM regulators and policy makers develop and regulate institutional investors.