Late last week, the International Organization of Securities Commissions’ (IOSCO) Technical Committee released a final report prepared by its Task Force on Commodity Futures Markets, currently co-chaired by the Commodity and Futures Trading Commission (CFTC) and the U.K. Financial Services Authority (FSA), which issued a separate statement praising the report. The report includes a number of recommendations to improve oversight and transparency of commodity futures markets and global regulatory cooperation, including the following:
- Improve transparency of fundamental commodity market price information in the areas of underlying market data, OTC data and data dissemination, as evaluated against standards set forth in the Tokyo Communiqué, which establishes internationally recognized benchmarks for contract design and for market surveillance and information sharing in physical delivery markets.
- Enhance transparency through market surveillance by identifying position concentrations and the overall composition of the market, taking into account traders’ related financial and underlying market positions, sharing all relevant information with domestic and international counterparts, developing information sharing agreements and providing adequate resources to support market surveillance programs.
- Ensure robust enforcement authority against attempted manipulation or market abuse by eliminating legal and regulatory impediments to that may inhibit the ability of regulators to detect and enforce manipulation cases.
- Enhance global cooperation efforts by convening periodically to discuss trends and developments in commodity markets, and techniques related to commodity market activity surveillance, investigations, and enforcement cases, and gathering information to facilitate data sharing.