IOSCO has published the results of its “Survey on Implementation of the Principles for the Regulation and Supervision of Commodity Derivatives Markets”. These 21 principles cover contract design, market surveillance, disorderly markets, enforcement and information sharing, and price discovery. The majority of the 37 market regulators who responded to the questionnaire were broadly compliant with the principles. The rate of positive responses is lower for the following principles:
- Principle 10: Collection of Information on On-Exchange Transactions. Reports on warehouse stocks are not available on a routine basis or without the need for the Market Authority to request them. In the same way, information to identify position holders down to the first client level is in many cases only available upon request to the intermediary that collects it.
- Principle 12: Large Positions. There are differences in the extent and means by which each Market Authority has the ability to aggregate positions owned by, or beneficially controlled on behalf of, a common owner.
- Principle 16: Framework for Addressing Multi-Market Abusive Trading. There are differences in the extent of the authority and techniques available to investigate trading positions, whether in respect of listed, OTC, or underlying physical contracts, when those transactions are deemed to have been traded with intention to manipulate on-exchange quotations.
- Principle 21: Commodity Derivatives Market Transparency. Aggregate public reporting of positions by class of trader is only undertaken in some jurisdictions. In Europe, it will be introduced by article 60 of MiFID 2.