The International Organization of Securities Commissions (IOSCO) has published its final report on regulatory issues raised by changes in market structure.
In the final report, IOSCO makes four recommendations that seek to promote market liquidity and efficiency, price transparency and investors’ execution quality in a fragmented environment.
The final report identifies possible outstanding issues and risks posed by existing or developing market structures and describes how these risks should be addressed. It also recommends that regulators monitor the impact of fragmentation on market integrity and efficiency, availability and timeliness of information, order handling rules and best execution and access to liquidity.
The final report also updates the 2001 IOSCO report on Transparency and Market Fragmentation, to the extent that it provides an overview of the current state of market fragmentation and regulatory steps taken in various members’ jurisdictions since 2001.
View Regulatory issues raised by changes in market structure – final report, 13 December 2013