IOSCO

On 15 January 2025, three international regulators – the Basel Committee on Banking Supervision (BCBS), the BIS Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) – published final reports on initial and variation margin in centrally cleared and non-centrally cleared markets.

Background

On 29 November 2024, the International Organization of Securities Commissions (IOSCO) issued a final report on the evolution in the operation, governance and business models of exchanges. The final report focuses on equity exchanges but may be of relevance to other types of trading venues and trading in other classes of financial instruments.

On 25 November 2024, the International Organization of Securities Commissions (IOSCO) published a report on its targeted implementation review of five of its “Principles for the Regulation and Supervision of Commodity Derivatives Markets”.

The five principles selected for review (Principles 9, 12, 14, 15, and 16) aim to address excessive commodity market volatility

On 25 November 2024, the International Organization of Securities Commissions (IOSCO) published its Final Report on Post Trade Risk Reduction Services: Sound Practices for Consideration, reflecting the results of IOSCO’s public consultation on the topic, which was launched on 26 January 2024.

IOSCO notes that it continues to follow the evolution

On 21 November 2024, the International Organization of Securities Commissions (IOSCO) issued a consultation report on pre-hedging.

Definition

For the purposes of the consultation report, IOSCO proposes to define pre-hedging as “trading undertaken by a dealer, in compliance with applicable laws and rules, including those governing frontrunning, trading on material non-public information/insider dealing

On 19 November 2024, the International Organization of Securities Commissions (IOSCO) issued a new roadmap to enhance retail investor online safety.

The first wave of the roadmap comprises of three consultation reports:

  • Consultation report on Finfluencers. The consultation report explores the evolving landscape of finfluencers, the associated potential benefits and risks, and

On 11 November 2024, the International Organization of Securities Commissions (IOSCO) issued a consultation report on revised recommendations for liquidity risk management for collective investment schemes (CIS), especially for open-ended funds. IOSCO is also consulting on complementary guidance for the effective implementation of the recommendations for liquidity risk management.

The recommendations

On 9 October 2024, the International Organization of Securities Commissions (IOSCO) issued its final report on investor education surrounding crypto-assets.

The report follows up on an earlier report published in 2020 and provides updated information on crypto-assets that will be useful to regulators when designing investor education initiatives for retail investors. The report

On 5 June 2024, the International Organization of Securities Commissions (IOSCO) published a final report on market outages.

The final report follows a consultation that IOSCO conducted last December.

IOSCO notes that market outages, particularly if they occur on a listing trading venue, can be highly disruptive, impacting price discovery and market resilience.