IOSCO proposed the good or sound practices to assist relevant storage infrastructures and their oversight bodies to identify and address issues that could affect pricing of commodity derivatives and in turn affect market integrity and efficiency. IOSCO proposes the adoption of the good or sound practices by all relevant storage infrastructures, their oversight bodies, and financial regulators in IOSCO member jurisdictions, as appropriate to their role and activities. Comments should be submitted on or before August 29, 2018.
Instead of prohibiting certain behavior, these practices are intended to create a framework that motivates the market to adopt best practices and self-correct. The report builds on the 2016 report of IOSCO on the impact of storage and delivery infrastructure on derivatives market pricing, which identified certain commodities storage and delivery situations that have the potential to affect derivatives pricing, if not properly addressed. These practices fall into five broad areas including oversight, transparency, conflicts of interest, fees and incentives, and operations. The report published for consultation sets out various potential good or sound practices to address the issues identified in each of the five areas.
Comment Due Date: August 29, 2018
Keywords: International, Securities, Commodity Derivatives, Storage Infrastructure, Good Practices, IOSCO
Previous ArticleSNB Updates Reporting Forms for Capital Adequacy Under Basel III
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.