IOSCO intensifies work on market-based finance

During the week, it says the board discussed progress on a number of initiatives, including the development of methodologies for identifying asset managers and other non-banks that are systemically important; the role that capital markets and securities regulators can play in supporting long-term finance, including infrastructure investment and financing for small business; and, the implementation of IOSCO principles in several areas, including financial benchmarks and the supervision of commodity derivatives markets.

The board also discussed audit quality, efforts to reduce the reliance of asset managers and market intermediaries on credit ratings, and, promoting deterrence as a way to improve investor protection and confidence in markets.

“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,” said its chairman, Greg Medcraft.

The group also indicated that it will release a survey on market trends next week, that observes the existence of growing leverage in securities markets, examines the impact of cross-border capital flows on emerging markets, financial risk disclosure, collateral management, and potential counterparty risk in central clearing houses.

The board also considered policy measures designed to build capacity in emerging markets, and to support the creation of regulatory frameworks for sustaining growth in both emerging and developed markets. And, it agreed to move forward with a certification program for securities regulators.

Finally, it reports that the Comisión Nacional de Valores of Argentina became the 103rd authority to sign onto its multilateral memorandum of understanding on cooperation and information sharing, which is used to facilitate cross-border cooperation among regulators.