IOSCO re­views com­mod­ity de­riv­a­tives mar­ket prin­ci­ples

The Pak Banker - - Front Page -


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.

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