Co-authored by Blake J. Brockway.
On June 6, the International Organization of Securities Commissions (IOSCO) published a report on International Standards for Derivatives Market Intermediary Regulation. The report includes high level recommendations for international regulatory standards for market participants that deal, intermediate, or make markets in over-the-counter (OTC) derivatives. The recommendations in the report are intended to address: (i) derivatives market intermediary (DMI) obligations that should help mitigate systemic risks; (ii) management of counterparty risk in OTC derivative markets; and (iii) protection of OTC participants from unfair, improper or fraudulent practices. The report also makes recommendations regarding registration and licensing standards, capital standards or financial resource requirements for DMIs, business conduct standards, supervision standards and recordkeeping standards.
A copy of the IOSCO report is available here.