The International Organization of Securities Commissions has published its annual work program, setting out its priorities for 2020. IOSCO will continue to focus on the five areas identified by its Board in 2019 as well as one new issue. The areas of focus are:
- Crypto-assets: following its consultation last year, in February 2020, IOSCO will publish a final report on issues, risks and regulatory considerations relating to crypto-asset trading platforms. IOSCO will also publish the outcome of its review of the regulatory risks relating to investment funds exposures to crypto-assets. Finally, a report will be issued in early 2020 on issues relating to Global Stablecoins.
- Artificial intelligence and machine learning: following its exploratory work conducted in 2019, IOSCO will consult in early 2020 on the use of Artificial Intelligence and Machine Learning by market intermediaries and asset managers. The final report will be published later in 2020.
- Passive investing and index providers: in late 2020, IOSCO will issue two reports to the IOSCO board. The first report will be a thematic analysis of the impact of the growth of passive investing on equity capital markets and the second report will be on conduct-related issues in index provision.
- Retail distribution and digitalization: in 2020, IOSCO will consult and issue a final report on online marketing and distribution, including cross-border aspects, to retail investors. The aim is to develop a toolkit of policy measures to mitigate the risks that are identified.
- Market fragmentation in the securities and derivatives markets: in its June 2019 report IOSCO flagged how supervisory cooperation could be strengthened to address market fragmentation. In 2020, IOSCO will continue its review on the use of supervisory colleges and other mechanisms of cooperation to enhance supervisory cooperation and intends to publish a report on good practices in relation to processes for deference.
- Corporate Debt and Leveraged Finance: IOSCO is concerned about potential conduct risks arising from market developments in this area. It will focus on the risks created by current origination practices, chains of intermediation in the corporate debt market and associated conflicts of interest and report during 2020 on the issues that it identifies.