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IOSCO intensifies work on market-based finance

By on June 15, 2014

The Board of the International Organisation of Securities Commissions has increased its efforts to conclude the organisation’s work on market-based finance.

The organisation is working towards promoting capital markets around the world as major drivers of economic growth, according to a statement.

“Capital markets are emerging as a key source of the finance needed across the globe to drive economic growth. Through a work agenda focused on fostering markets as a trusted source of capital, IOSCO is playing an important role in supporting that growth,” IOSCO Chairman, Mr. Greg Medcraft said at a meeting of the board last week in Madrid, Spain.

The statement explained that the board, which comprises 32 members from both developed and growth and emerging markets, discussed progress on a number of key initiatives.

For instance it said, “On initiatives to support the G20-FSB efforts to restore stability in the global financial system and build economic growth, the Board progressed: Methodologies for identifying non-bank global systemically important financial institutions or activities in the areas of asset management and market intermediaries.”

It added that it also made progress on the role capital markets and securities regulators can play in supporting long-term finance, including infrastructure investment and SME financing.

Other issues include the implementation of IOSCO principles on financial benchmarks, the IOSCO principles for oil price reporting agencies and the IOSCO principles for the regulation and supervision of commodity derivatives markets.

During the meeting, the board discussed audit quality and important initiatives to build confidence in global securities markets and to “reduce the reliance of asset managers and market intermediaries on credit ratings, promote effective credible deterrence as a key element in improving investor protection and confidence in markets,” the statement said.

Also, members of the organisation discussed the results of the IOSCO Research Department´s latest market survey on market trends, which emphasises the growing leverage in securities markets, the impact of cross-border capital flows on emerging markets, financial risk disclosure, collateral management, and potential counterparty risk in central clearing houses.

The market survey is expected to be published next Monday.

 

 

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