IOSCO completed its taskforce work on the supervision and regulation of commodity derivatives markets.
The G20 had asked IOSCO to work on the regulation and supervision of commodity derivatives markets back in 2010, stressing the need “for enhanced transparency in both cash and derivatives markets as previously recommended by IOSCO”.
In April 2011, the G20 Ministers asked IOSCO “to finalise, by September, its recommendations on regulation and supervision in this area especially to address market abuses and manipulation, such as through position management powers, including the authority to set ex-ante position limits where appropriate, among other powers of intervention.”
IOSCO published its original Principles in 2011 and undertook 3 implementation reviews since (in 2012, 2014, 2018).
Given the markets evolution such as new types of venues, new electronic means of access to markets, increased reliance on electronic data, increased role of Exchange Traded Products (ETP), reviewed resilience and sustainability factors, IOSCO decided that it was time to revise and update those original Principles.
The key focuses are: to ensure Conduct; to avoid abuse and manipulation.
IOSCO document: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD689.pdf