IOSCO reviews commodity derivatives market principles
The International Organization of Securities Commissions has published today the final report Survey on the Principles for the Regulation and Supervision of Commodity Derivatives Markets, which reviews how Market Authorities comply with IOSCO’s recommendations on commodity derivatives markets.
Results of the survey indicate that the majority of respondents were broadly compliant with the IOSCO Principles on the Regulation and Supervision of Commodity Derivatives Markets, which were published in October 2011 and endorsed by the G20 a month later at its summit in Cannes. Also at Cannes, the G20 Leaders called on IOSCO to report on the implementation of its Principles by the end of 2012.
In April 2012, IOSCO commissioned a survey on implementation of the recommendations on commodity derivatives market regulation in response to the request from the G20 Leaders. Thirty-seven market regulators answered the questionnaire. Their responses show how regulators globally undertake and execute regulation of both financial and, in some cases, physical markets.
At Cannes, the G20 Leaders also stipulated that Market Authorities should be granted effective intervention powers to address disorderly markets and prevent market abuses. In particular, they said market regulators should have the ability to use formal position management powers, including the power to set ex-ante position limits, particularly in the delivery month where appropriate, among other powers of intervention.