The International Organization of Securities Commissions (IOSCO) has published a press release following the conclusion of private meetings in which its members discussed responses to the challenges currently facing market regulators.

Among the points raised:

  • on enforcement cooperation, IOSCO’s Presidents’ Committee approved the text of an enhanced multilateral memorandum of understanding (MMoU) on cooperation and the exchange of information. The enhanced MMoU provides for additional powers that IOSCO believes are necessary for its member regulators to ensure their continued effectiveness in deterring cross-border misconduct and fraud in securities markets;
  • on policy work, the IOSCO Board (IB) progressed its work on asset management by focusing on liquidity risk management and leverage and considered how to address gaps in asset management data collected by securities regulators, and will publish a statement in this regard shortly. In other key policy areas, the IB heard updates on work on central counter-parties’ resilience and recovery, market conduct in wholesale markets, and revisions to IOSCO’s Objectives and Principles of Securities Regulation and supporting methodology;
  • on the issue of infrastructure finance, the IB agreed to establish a working group that will engage with development banks, institutional investors and other stakeholders to discuss issues relevant to market-based finance for infrastructure development;
  • in the area of corporate governance, IOSCO’s Growth and Emerging Markets Committee updated the IB on its preparation of a report on how capital markets regulators can apply the Organisation for Economic Co-operation and Development’s principles on corporate governance to ensure more resilient capital markets; and
  • on identifying and addressing emerging risks, the IB discussed the issue of liquidity in securities markets, with a particular focus on liquidity in corporate bond markets. The IB intends to publish a consultation paper on corporate bond market liquidity and will take up further work on corporate bond market transparency. The IB also discussed its work on cyber resilience and fintech. It agreed to consider different mechanisms for securities regulators to share and gather information on cyber risk and cyber security issues that are relevant to securities regulators across its membership.

View IOSCO reports on developments at May 2016 meeting, 11 May 2016