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.

(Source: IOSCO Announces Commodity Derivatives Markets Supervisory Principles)