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
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