IOSCO forms task force on OTC derivatives regulation

EUROPE - The Technical Committee of the International Organisation of Securities Commissions (IOSCO) has formed a task force on over-the-counter (OTC) derivatives regulation.

IOSCO said the task force would aim to coordinate regulators' efforts in the development of supervisory and oversight structures related to OTC derivatives markets.

The task force will have three main goals.

The first will be to develop consistent international standards in the areas of clearing, trading, trade-data collection and reporting and the oversight of certain market participants.
 
The second will be to coordinate other international initiatives, and the third will be to serve as a centralised group through which IOSCO members can consult.

The committee said its experience in developing objectives and principles for securities regulation - including its work on recommendations for central counterparties with the Committee on Payment and Settlement Systems - provided the task force with a strong foundation.  
 
Hans Hoogervorst - chairman of the committee and recently appointed chair of the International Accounting Standards Board, succeeding Sir David Tweedie - said the IOSCO had recognised the need for more international coordination among securities regulators to support ongoing reform efforts.
 
He added: "As regulators implement their new legislative mandates, close consultation with foreign counterparts and the development of consistent standards across jurisdictions ... could help to promote convergence among IOSCO members and other regulatory bodies' regulations, reduce the potential for conflicts of law or regulatory arbitrage and mitigate systemic risk."