IOSCO Reprioritizes Work Program to Address Impact of COVID-19
IOSCO agreed to delay some of its work in 2020 to redirect its resources to focus on the multiple challenges securities markets regulators are addressing as a result of the COVID-19 crisis. This decision means that the work priorities outlined in the annual work program for 2020 needed to be reconsidered. Among other things, substantial resources are being devoted to addressing areas of market-based finance that are most exposed to heightened volatility, constrained liquidity, and the potential for procyclicality. These efforts include examining investment funds as well as margin and other risk management aspects of central clearing for financial derivatives and other securities.
A limited number of other work streams that are close to completion will continue, as will work related to the G-20 deliverables. The timelines for the projects in relation to asset management linked to FSB recommendations will be coordinated with FSB. The work being delayed or paused includes
- Analysis of the use of artificial intelligence and machine learning by market intermediaries and asset managers
- The impact of the growth of passive investing and potential conduct-related issues in index provision
- Issues around market data, outsourcing, and implementation monitoring
However, IOSCO will continue to proceed with its work on good practices for deference as well as other projects that are near completion ans will not burden limited regulatory or industry resources. IOSCO will also examine any investor protection issues and market integrity or conduct risks that may arise in the context of the COVID-19 crisis.
Related Link: Press Release (PDF)
Keywords: International, Banking, Securities, COVID-19, Work Program, Artificial Intelligence, Machine Learning, Outsourcing, Derivatives, FSB, IOSCO
Previous Article
EIOPA Changes Frequency of RFR and EDA Processes to Two WeeksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.