The Technical Committee of IOSCO has published its final report on Principles for the Regulation and Supervision of Commodity Derivatives Markets. The Principles apply to exchange-traded futures contracts, futures contracts options and options referenced to a physical commodity, index or price series which may settle in cash or by physical delivery, although many of the principles will also be applicable to OTC markets. They cover:
- design of Physical Commodity Derivatives Contracts;
- surveillance of Commodity Derivatives Markets;
- disorderly Markets;
- enforcement and Information Sharing; and
- enhancing Price Discovery and Transparency.