The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a final report which contains recommendations to improve the supervision of commodity futures markets and global regulatory cooperation.

The recommendations focus on the ability of futures market regulators to access relevant information concerning related commodity markets over which they generally do not have jurisdiction, such as the cash and OTC derivatives markets, improving regulators’ supervisory and enforcement powers and the enhancement of global cooperation. The recommendations aim to achieve these objectives through:

  • Evaluating regulators’ oversight programs against the standards set forth in the Tokyo Communiqué.
  • Reviewing regulators’ powers to ensure they are able to access the information necessary for effective market surveillance.
  • Promoting improvements or eliminating impediments to regulators’ legal and regulatory frameworks that may inhibit their ability to detect and enforce manipulation cases.
  • Establishing periodic meetings among futures market regulators to share concerns on trends and developments in commodity markets as well as the sharing of market surveillance and enforcement techniques.

The recommendations fall under the following headings:  

  • Improved transparency of fundamental commodity market price information.
  • Transparency and market surveillance.
  • Enforcement powers.
  • Enhancing global co-operation.

The FSA has published a press release on its website stating that the US Commodity Futures Trading Commission and the FSA welcomes the proposals published by IOSCO.

View IOSCO report on commodities futures markets, (PDF 314KB), 5 March 2009

View CFTC and FSA welcome IOSCO proposals to boost regulation of commodity futures markets, 5 March 2009