IOSCO published a summary of its annual meeting, during which members discussed priority issues facing securities market regulators and supervisors. The meeting was hosted by the Australian Securities and Investments Commission (ASIC) in Sydney. At this meeting, the IOSCO members discussed the aspects of its priority work, including margin requirements for non-centrally cleared derivatives, report to be published by Cyber Task Force, work related to crypto-assets trading platforms, report on sustainable finance in emerging markets, and work in the area of fintech. The IOSCO Board considered next steps for important priority topics, which are consistent with the IOSCO work plan for 2019, which was published on March 25, 2019.
The key discussed priorities areas include the following:
- Margin requirements. The Board analyzed issues around the final implementation phase of the BCBS-IOSCO margin requirements for non-centrally cleared derivatives. It discussed key issues related to the preparedness of more counterparties coming into scope on or after September 01, 2020, when the final margin requirements go into effect.
- Cyber Task Force. The Board agreed to publish a Task Force report that examines how IOSCO members are applying existing cyber standards or guidance in their respective regulatory regimes and identifies potential gaps in the application of these standards that may need to be addressed.
- Crypto-assets. The Board members agreed to publish a consultation report on crypto-asset trading platforms, in response to a G20 request. Additionally, on May 06, IOSCO launched an Emerging Digital Threats (EDT) portal to enable sharing of enforcement-related information on emerging digital threats, including those arising from crypto-assets.
- Sustainable finance. The Board discussed the work of the IOSCO Sustainable Finance network, which was created last year to focus on the role of regulators in sustainable finance and the relevant international initiatives taken by other organizations. The Board noted a report on sustainable finance in emerging markets that the Global Emerging Markets (GEM) Committee plans to publish.
- Standards implementation. The Board approved the IOSCO Assessment Committee’s workplan for 2019-2020 and proposed to conduct an IOSCO Standards Implementation Monitoring (ISIM) project on IOSCO’s Principles Relating to the Regulator.
- Fintech network. The discussions covered the work of the IOSCO Fintech network, which was established in May 2018 to facilitate the sharing of knowledge and experiences among IOSCO members. The Board deliberated on next steps for the four workstreams: distributed ledger technology, ethics in artificial intelligence and machine learning, regtech, and encouraging of innovation. Members also discussed how IOSCO could assist emerging markets with fintech matters.
- Market fragmentation. The Board agreed to publish a report on market fragmentation and cross-border regulation, in response to a G20 request. The report will analyze how some financial markets may have experienced fragmentation in whole or in part due to regulation.
- Asset management. The Board discussed the public consultation (by IOSCO) on proposals to measure leverage in investment funds and to collect data based on the metrics it develops. The work is part of the IOSCO follow up to the FSB recommendations to address potential structural vulnerabilities in asset management activities.
Keywords: International, Banking, Securities, Crypto-Assets, Fintech, Work Plan, OTC Derivatives, Margin Requirements, Cyber Risk, Sustainable Finance, IOSCO
Previous ArticleCentral Bank of Ireland Publishes Its Approach to Resolution
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
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.
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.
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.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.