June 13, 2017

IOSCO published its Task Force report on the regulation of wholesale market conduct. The report describes the tools and approaches that IOSCO members use to discourage, identify, prevent, and sanction misconduct by individuals in wholesale markets. The report also identifies the tools used by market regulators to minimize misconduct risk arising from the particular characteristics of wholesale markets.

The report describes the regulatory requirements for market participants in wholesale markets. These requirements are based on broad expectations of the market conduct, such as honesty, integrity, and competence. These expectations are consistent with the existing IOSCO principles, standards, and other initiatives on conduct regulation, including its Principles for Financial Benchmarks, which were published in July 2013. The report also provides an overview of the ways in which market regulators help ensure that firms and individuals meet their obligations under the legal, regulatory, and supervisory frameworks in their jurisdictions.

The efficient functioning of wholesale financial markets is critical to both global and national economies. Ashley Alder, Chair of the IOSCO Board and Chair of the Task Force on Market Conduct, said “Misconduct erodes investor trust and confidence in financial services and undermines the effective operation of financial markets, including wholesale markets.” Relevant tools to address this risk include tailored enforcement and remedial sanctions, such as orders to participate in market structural reforms or agreed remediation and other undertakings; surveillance and data analysis to identify suspicious trades; and the protection of whistleblowers.

Related Links

Report on Wholseale Market Conduct (PDF)

Principles for Financial Benchmarks (PDF)

Keywords: International, IOSCO, Securities, Market Conduct, Wholesale Market

 


Related Articles
News

EC Amends Regulation Supplementing Solvency II Directive

EC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance.

June 18, 2019 WebPage Regulatory News
News

IOSCO Report Examines Application of International Cyber Standards

IOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions.

June 18, 2019 WebPage Regulatory News
News

PRA Launches 2019 Stress Test Exercise for Life and General Insurers

PRA has launched the biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business.

June 18, 2019 WebPage Regulatory News
News

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.

June 17, 2019 WebPage Regulatory News
News

FSB Assesses Implementation of Compensation Standards and Principles

FSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.

June 17, 2019 WebPage Regulatory News
News

IMF Publishes Reports on 2019 Article IV Consultation with Ireland

IMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.

June 17, 2019 WebPage Regulatory News
News

EBA Updates Data on Deposit Guarantee Schemes in EU

EBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.

June 17, 2019 WebPage Regulatory News
News

SNB Updates Form for Reporting Solvency Risk of Counterparties

SNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).

June 17, 2019 WebPage Regulatory News
News

ISDA Studies Variation in Global Implementation of Margin Requirements

ISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.

June 17, 2019 WebPage Regulatory News
News

US Agencies Finalize Rule to Streamline Reporting for Small Banks

US Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.

June 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3265