IOSCO consultation on good practices concerning OTC commodities derivatives markets

The International Organization of Securities Commissions (IOSCO) has published a consultation report on good practices concerning over-the-counter (OTC) commodity derivatives markets. Feedback is sought on a proposed set of good practices intended to:

• Strengthen the implementation of Principles 12 (authority to obtain information), 15 (intervention powers in the market), and 16 (unexpected disruptions in the market) of IOSCO's principles for the regulation and supervision of commodity derivatives markets. In particular, the proposals relate to the collection and aggregation of OTC derivatives data, including beneficial ownership, to support effective surveillance, alongside enhanced information-sharing and cooperation between exchanges and regulators, particularly in times of stress.
• Set expectations about timely regulatory intervention to prevent or address disorderly market conditions, particularly where risks in OTC markets may spill over into exchange-traded markets.
• Promote proportionate, risk-based, and market specific approaches to OTC data collection and intervention powers.

The report invites comments generally on the proposed guidance and asks ten specific questions. The deadline for comments is 19 June.

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