
Iosco aims to boost oversight on commodity futures
The report was published by Iosco's Task Force on Commodities Markets, which was formed in October 2008 following concerns over price volatility - and concerns over market manipulation - in the commodities futures markets.
In an effort to boost international co-operation and facilitate transparency, the guidelines focused on the ability of regulators to access information on commodities markets that they do not oversee - including the cash and OTC derivatives markets.
The report called for a removal of the barriers preventing regulators from collecting the information they need to detect market manipulation or other abuses by market participants holding large positions in commodities contracts.
The task force also noted that futures markets regulators should promote improvements in the quality and transparency of underlying OTC market information, suggesting data providers make efforts to offer greater detail into data and improve its accessibility.
Acknowledging the enforcement challenges facing futures market regulators, the task force also stated that there should be a review of existing market abuse authority to ensure it permits prosecution of attempted manipulation and to ensure regulators have the resources to build enforcement programmes and the ability to investigate for potential abuses.
"The complex and frequent opacity of factors that drive price discovery in the futures markets, combined with the critical importance of commodities markets to the world's economy, argue for continued vigilance to promote the transparency of futures market price formation and the interconnections between regulated futures and related commodity markets," Kathleen Casey, chairman of Iosco's technical committee, said in a statement.
See also: Iosco to tackle trading abuses
Iosco group to turn spotlight on commodity markets
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Investing in operational readiness to optimise FRTB capital
A forum of industry experts discusses the implementation of FRTB, the burden of investment into data and infrastructure for FRTB compliance, the considerations for banks in using the standardised approach (SA) and the internal model approach (IMA)
SEC cyber rules risk creating web of confusion and costs
Proposals would require breach notifications, public disclosures and annual cyber assessments
Indonesia readies close-out netting after passing P2SK Law
Bankruptcy law changes remove close-out netting obstacles
Behnam comments fan JSCC hopes for US client clearing
Japan clearing exec welcomes CFTC chair’s pledge to keep discussing OTC clearing status for non-US houses
Top 10 operational risks: The umpire strikes back
Tougher regulatory enforcement, new consumer rules and rise of ESG are ringing alarm bells
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended
How Finma milked Credit Suisse’s CoCos to close UBS deal
An unusual clause in Swiss AT1 bonds allowed them to be written off, but could others follow suit?